How can merchants prevent chargebacks?

Merchants must strike a balance between preventing fraud as much as possible without encumbering legitimate transactions.

Ensure you’re processing with a PCI-compliant gateway. This means you’re authenticating billing addresses with AVS verification, requiring the CVC code off the back of payment cards, and validating the cardholder’s email address, among other authentications.

You can tick all these boxes by processing using 3D Secure protocol.

You can also use fraud detection software that checks for common patterns of fraud; but again you have to be weary of over-protecting your transactions and declining legitimate cardholders.

You can prevent friendly fraud chargebacks through Verifi Order Insight and Ethoca Consumer Clarity (formerly Eliminator). These services enhance your statement descriptors to help cardholders recognize their purchases, and helps issuers tie their cardholders to their purchases. Both tools are integrated into ChargebackHelp Plus.