Tips to help prevent fraud-related chargebacks
Fraud can be a headache, but don’t worry! There are steps you can take to protect your business. Here’s how we’ve broken it down for you:
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 where everyone can see it, like on your website or in-store. This can help stop fraudulent claims in their tracks.
3. Stick to your rules
Always follow your own refund/cancellation policies when dealing with requests. Consistency is key.
4. Refund customers promptly
Process refunds as fast as you can. If customers know when to expect their money back, they’re less likely to file a chargeback.
5. Follow up in writing
After refunding, send a confirmation email with the refund timeline. This reassures customers and provides proof.
6. Strengthen your ecommerce T&Cs
Add a tick box for customers to confirm they agree to your terms before purchasing. It’ll come in handy if a chargeback happens.
7. Label your business name clearly
Ensure your business name is easily recognizable on statements, like "Yeti Café" showing up as “Yeti Café” on their bank statements.
8. Match the refund to the original card
Always process refunds to the original card used. If you refund to a different card, a chargeback could still happen.
9. Track your terminals
Make sure your card terminals are secure and don’t share your supervisor code. If it’s compromised, change it fast!
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 off, 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’re always working to help protect you from fraud. While we do our part as your payment provider, preventing fraud is an ongoing battle. If you notice anything suspicious, don’t hesitate to contact us—we’re here to help you keep your business safe.