Death and taxes may be inevitable, but the experts at Fullbay’s Diesel Connect conference Tuesday in Phoenix say if that statement ever gets amended, chargebacks could be added to that list.
Every business gets chargebacks. Fullbay’s team says eliminating them entirely is likely impossible, but with proper language added to invoices and credit card authorization forms, consistency around how documentation is presented and, when possible, driving customers to pay through specific portals, shops can reduce instances in which chargebacks are initiated — and even win some chargeback disputes.
“It’s going to happen,” says Cody Yanchak, senior payments consultant-partner and launch optimization, Worldpay. “You’re going to experience them … you need to do your best to bulletproof your [credit card] authorization.”
[RELATED: FTC banning non-competes; DOL to update overtime rules]
Fullbay Head of Payments Strategy Mary Cory says the best thing shops can do immediately to reduce chargebacks initiated against their business is to update all invoice and payment documentation to include business terms and conditions, such as refund, return and cancellation policies.
Cory says having a sign on your window that says “no refunds” doesn’t help when an invoice is paid by a fleet manager who never sets foot in your shop. She also says in those situations, if you’re letting drivers sign CC authorization forms that don’t have their name on it, that has to stop immediately. Customers may prefer to have their drivers sign invoices to get repairs underway immediately and reduce uptime, but that action also gives them an out if they ask for a chargeback at a later date.
“If somebody signs for a charge and their name isn’t the name on the card, you will lose that chargeback every time,” she says.
As for other electronic payment methods, Tuesday’s panelists say ACH payments won’t be hit by chargebacks but can create other issues, like being returned due to insufficient funds. Fullbay’s panel says ACH makes the most sense for stable, reliable customers that a shop is familiar with and trusts.
Yet Tuesday’s experts also spoke of the importance of digital payments. Cory says “consumers demand” the ability to pay digitally; shops can’t demand cash or paper checks as a way to avoid chargeback risks or the fees associated with digital payments.
[RELATED: Knowing your customers key to keeping sales on the table]
“It can give you that competitive advantage,” adds Louis Barrales, manager, Fullbay Payments.
Cory says a recent survey of businesses indicates 92% of users believe electronic payments increase efficiency, and 85% reduce cost. Bringing revenue in digitally also reduces the likelihood of internal fraud or theft risks. It’s not a good idea to have a bunch of money sitting around your business all the time, she says. “The good does outweighs the bad.”
Tuesday’s session also touched on how Fullbay continues to strengthen its platform to make payments easier, for shops and customers alike. Cory and Barrales say Fullbay “wants to make your lives easier” and reduce the amount of time shops must dedicate to running down and closing invoices.
