Friday, 12 March 2021

Published Friday, March 12, 2021 with 1 comment

Chargebacks: All Sports Clubs Need To Know


No organization wants to deal with chargebacks. They are an unnecessary waste of time and resources. For sports clubs it becomes all the more difficult, especially during a busy season. Here’s all you need to know about chargebacks and what you can do to avoid them.

 

Understanding chargebacks

A chargeback occurs when the payer’s bank necessitates a transaction reversal at their end. In simpler terms, a chargeback is disputed credit card transactions. When a client makes a payment through their credit card, and later for some reason their bank initiates a payment reversal then the payer gets their money back, which is debited from payee’s or receiver’s account.

 

How do chargebacks affect you

Chargebacks can cause both long-term and short-term damage to businesses. Not only they cost the business its revenue from that particular transaction, but also cost the company a sizable chargeback fees. In the long run, if the chargebacks become plenty, the credit of the club is also affected, which can be bad for any business. Moreover, for every chargeback case, contesting it or processing it utilizes time, money and resources, which is counter-productive.

 

Why do chargebacks occur

Like it’s mentioned above, a chargeback is a payment dispute. Ideally chargebacks are there for consumer-protection, where in any fraudulent use of the card can be reversed. But customers often use a chargeback for their casual mistakes or silly slips while making a payment. There can be several reasons chargebacks happen, some of these are:

 

·         Verbal transactions

If the client makes payment over the phone or verbally by telling credit-card details, they may later deny having made any such transaction. Since you do not have any written information, contesting the chargeback will be difficult.

 

·         Invalid card or card number

This is perhaps the most common reason for a chargeback. Customers can easily slip-up while giving their card details. In some cases, the card gets past its expiration date.

 

·         Duplicate transactions

This is another common reason for chargeback. Sometimes the customer pays twice while making the payment, and a duplicate transaction occurs. Many a times, a system error can also trigger a duplicate transaction.

 

How can I reduce chargebacks?

While there is no way you can completely negate chargebacks, but you can reduce the numbers significantly. Here are a few things you can do:

 

·         Provide clear and concise payment information to your customers. Make your payment terms (if any) very clear, and ensure you give the reader a chance to go through them, possibly every time they make the payment.

·         Have a system that verifies the card information as the client enters it in the system.

·         Have an administrator/accountant verify transactions at their end. For instance, one of the team-parent tries to commit a fraud by using someone else’s credit card for making payment. For instance, a team parent who pays monthly installments for fees, tries to make the whole year fee in one go, or a new credit card is used wherein the card holder’s name does not match the either parent, these can be the red flags you’d have to watch out for.

·         Keep all transaction records. Do not delete files, receipts or any transaction related papers.

·         Send payment acknowledgement slips to parents every time a payment is made, and possibly take a signature from them, a digital signature will do too. This is a subtle 2-step process to ensure that the payment at your end has been verified. Makes your case stronger while contesting a chargeback.

 

We at InstaTeam have devised our ‘Payments’ feature in a way that takes care of all the above points and reduces the number of chargebacks for your club. But, in the occasional event that it does occur, our team is more than available to assist you. Please feel free to reach out if you are facing a chargeback request. Together we are a team, and at InstaTeam, our teams mean the world to us.

 

 

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1 comment:

  1. While there is no way you can completely negate chargebacks, but you can reduce the numbers significantly. Here are a few things you can do. canada jewerly , australia jewerly

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