How to Notify Your Customers If There’s a Problem with a Payment
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Someone attempted to make a purchase in your store, but something went wrong. Either the CVV code did not match, or the device fingerprinting system reacted and rated the transaction as risky, or whatever. If we receive, say, chargeback alerts or other indications something went wrong, how do we pass it to the customer?
One of the most worrying problems about online payments is chargebacks. Claiming one often means you lose your money while the purchase is shipped and probably never returned. More than that: a chargeback fee is also on the merchant. The greatest trouble, though, awaits the merchant if the chargeback rate rises above some threshold (3% or even 1%, depending on the industry). Then even the generic payment processing fees grow seriously.
But chargeback alerts let the merchant know when it happens, so they can address the situation directly, contact the customer, satisfy the claim instantly, and bypass all the procedures that involve the payment processor. Then the situation does not affect the merchant’s status.
To minimize chargeback damage, you can also connect device fingerprint-based security systems. It will automatically decline transactions if the probability of fraud is above a certain critical level. But even then, there is a need to inform the customer about the canceled purchase. It means the customer’s card is compromised and needs some actions to protect it.
Payment gateways usually provide this opportunity due to collaboration with banks. They don’t need to collect the user data: due to KYC policy, the banks already have it. So the gateway alerts the bank about issues with a certain credit card, and then the bank alerts the customer.
Other Fraud Alerts
While with chargebacks the customer can be the fraudster benefitting from the dispute (unless you set it right), in other situations the customer can be the victim. For example, if someone tried to make a purchase with a familiar card number but with other details mismatching, the transaction can be declined. What shall you do after that? Contact the legit owner of the card and inform them about the incident.
So, you better have forms for various sorts of alerts prepared. Payment gateways and entire platforms have already embraced this form of notification. All you need to do is set up the rules for such alerts.
Where to Contact Customers?
Know Your Customer provides great responsibility as well as possibilities to fulfill it. For example, you can have some email address or phone number of your customer to contact them manually if something goes wrong. It’s an additional measure (the main message will arrive from the bank when it’s alerted by the payment gateway), but sometimes it’s necessary.
In addition, you can (more than that, you should) send a message to the customer right on your site. It will be displayed when they enter the site next. Plus (if the customer has allowed it), an email will be sent to notify the customer about this very message.
Go Tell It on the Platform?
Alerting the customer about anything going wrong is the question of your responsibility. Are you a problem solver, or the one who hides away? Even if you suffer losses after your intervention, you still gain in terms of reputation. That’s a reason why it must be you (well, you too) who alerts the customer about anything going wrong.
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