10 Proven Strategies to Reduce Chargebacks for High-Risk Merchants

Why Chargebacks Matter More for High-Risk Merchants

High-risk merchants often face stricter chargeback thresholds. While a traditional business might tolerate 1% chargebacks, your processor might require you to stay under 0.5%.

10 Strategies to Reduce Chargebacks

1. Clear Billing Descriptors

Make sure your company name appears clearly on customer statements. Confused customers file chargebacks.

2. Excellent Customer Service

Make it easier to contact you than to call the bank. Respond within 24 hours.

3. Detailed Product Descriptions

Set accurate expectations. Disappointed customers become disputers.

4. Use AVS and CVV Verification

Require address and security code matching to prevent fraud.

5. Implement 3D Secure

Add an extra authentication layer for online transactions.

6. Clear Refund Policies

Display your return policy prominently. Honor it consistently.

7. Send Order Confirmations

Immediate email confirmations with tracking reduce "I never ordered this" chargebacks.

8. Monitor for Fraud Patterns

Use fraud detection tools to catch suspicious orders before shipping.

9. Keep Detailed Records

Documentation is your defense in chargeback disputes.

10. Use Chargeback Alerts

Services like Verifi and Ethoca notify you before chargebacks are filed.

Need Help With Chargebacks?

PayWithLegacy provides chargeback management tools and expert guidance to keep your rates low.