How to Avoid Chargebacks
While it's nearly impossible to avoid chargebacks completely, there are a few steps your team can take to further limit them in the future. We’ve outlined recommendations below.
Tips to prevent fraud-related chargebacks
- Reach out to guests that place high-value orders. Fraudsters often place large orders immediately after obtaining stolen credit card information. Call to confirm details of orders significantly larger than your check average (especially if made by a first-time guest).
- Add a statement to your business page and/or checkout page requiring that guests must present an ID matching the credit card used for purchase. This will act as a deterrent. Even if you're not able to physically check every ID, fraudsters will be less motivated to order from your business if they see this verbiage on your business page. Fraudsters may have access to credit card information, but not the physical cards or government issued IDs.
- Reach out to any notable first-time guests. New guests will appreciate the warm welcome to your business, but more importantly, a strategic call or email will discourage bad actors. Most fraudulent transactions come from first-time guests.
Tips to prevent non-fraud chargebacks
- For dine-in reservations, interact with guests while they’re in-house and address dissatisfaction promptly. Review post-visit review comments and reach out to unhappy guests. About 4% of chargebacks occur because the product did not meet a guest's expectations.
- List your business’ contact info on your public-facing Tock page. This will encourage guests to contact you with any issues and give you the opportunity to address the concerns before receiving a chargeback.