Tips to help prevent fraud-related chargebacks
Fraud impacts many businesses, but there are steps you can take to protect your business. To help make things clear, we’ve split this article into three sections:
General tips to help prevent chargebacks
How to spot fraud
Ways YetiPay can help
General tips that could help prevent chargebacks
1. Set out your policy
Clearly define your terms and conditions regarding order returns and refunds. Make sure they are straightforward and easy for your customers to understand.
2. Make your policy easy-to-find
Display your refund policy prominently on your website or in your store. This may discourage customers who might otherwise attempt to make fraudulent claims.
3. Stick to your rules
Ensure your business consistently follows your refund or cancellation policy when customers submit legitimate requests.
4. Refund customers promptly
Process refunds as quickly as possible, and let customers know when they can expect to see the funds back in their account. Customers are less likely to initiate a chargeback if they believe they can resolve issues directly with you.
5. Follow up in writing
After issuing a refund or cancellation, send a confirmation email that includes the expected refund timeline. This helps reassure the customer and provides a record of the transaction.
6. Strengthen your ecommerce T&Cs
Add a tick box at checkout for customers to confirm they agree to your terms and refund policies. This can provide useful evidence if a chargeback is later filed.
7. Label your business name clearly
Ensure customers recognize your business descriptor on their statements. For example, if your business is called “Yeti Café,” your descriptor should say something like, “Your statement will display this charge as Yeti Café.”
8. Match the refund to the original card
Refunds should always be processed to the same card used for the original payment. If a different card is used, the customer may still raise a chargeback.
9. Track your terminals
Keep terminals visible and secure, and only share your supervisor code with trusted colleagues. If you believe someone has access to the code who shouldn’t, change it immediately.
Spotting indicators of fraud
There are common signs that may indicate fraudulent activity. If you notice any of these red flags, take action to prevent potential fraud.
In-person payments
Customers rushing through high-value purchases.
Physically unusual payment cards (e.g., different shape, size, or damage).
A nervous customer, or someone who signs unusually quickly or slowly.
The customer checks the card’s signature before signing.
The customer has multiple cards with different names.
The customer wants to split one large purchase across multiple cards.
You experience multiple declined transactions.
Tip for in-person payments: If something feels suspicious, you have the right to ask the customer for ID before accepting the payment.
Card-not-present payments
Unusually large orders.
Multiple orders, especially to different addresses.
Customers focusing on fast delivery, requesting couriers or taxis to collect items on short notice.
Tip for card-not-present payments: Instead of processing payments over the phone, consider using Payment Links, which are more secure and include additional fraud protection features.
Reminder for card-not-present payments: An authorisation code is not a guarantee of payment. Fraud-related chargebacks can be raised up to 120 days after the transaction, and service-related chargebacks can be raised up to 540 days later.
How YetiPay can help
At YetiPay, we work hard to help protect you from fraud. While we take steps to prevent fraud as your payment provider, it's an ongoing challenge that no one can fully eliminate.
If you notice any suspicious activity or have concerns about potential fraud, we’re here to help. We’ll provide advice and guidance on how to safeguard your business.