Limiting Credit Card Chargebacks
Table of Contents
Purpose
This guide describes various ways for store owners to limit credit card chargebacks.
Chargeback Regulations
VISA implemented regulations that should help reduce small ticket chargebacks. As of July 22, 2016, VISA will not process chargebacks under $25.
- https://chargeback.com/visa-minimum-chargeback-amounts/
- http://www.pymnts.com/news/emv/2016/visa-emv-certification-acceleration/
- https://chargebacks911.com/new-visa-chargeback-regulations-take-effect-january-2016/
LaundryCard Configuration Best Practices - Authorize.Net
With LaundryCard Version 8 and Version 9 systems using Authorize.Net, the best way to reduce chargebacks is to have employees validate credit card transactions by checking customer IDs.
- Lower the Credit Card Maximum Amount. This value controls the maximum amount that can be charged via credit card per transaction.
- Set the Daily Credit Card Limit to the highest amount that a customer can charge via credit card before seeing an employee. This value controls the total amount a customer can spend on the current day before requiring an employee override.
- Example ($19, as above): If a customer tries to charge $20, the system will display a message instructing the customer to see an employee for override. At this point, the employee can ask to see an ID or any other requirements your business may have.
- Example ($1): This would require the first transaction with a particular credit card to be verified. Once an employee has verified the card, the customer use the card as much as needed for that day (Max per transaction still applies).
LaundryCard Version 9 - EMV Acceptance
With LaundryCard Version 9 systems, EMV payment acceptance is available, which you may review more information regarding upgrading to EMV acceptance here: Accepting EMV and contactless payments with LaundryCard - Ingenico Hardware.