10 Tips to Defend Against Chargebacks

Note: We are not attorneys or accountants. The following information is purely meant to be informative, subject to change, and we invite you to contact us with any questions. Thank you.


Ten Tips to Defend Against Chargebacks
When You Hand-Key a Transaction or Have a Recurring Payment


10. Submit customer billing address, zip code and CVV2 information on the transaction and and check for a match following the authorization.

9. Generate an invoice for your transaction with a payment link to process the transaction.

8. Consider adding the return/cancellation policy to the receipt.

7. If you are using the FPN Payment Form, add your return/cancellation policies to the payment form page.

6. When setting up a recurring payment, ensure that the customer is using a card issued in their name. Too often chargebacks happen when the cardholder is not the person on the card. Have the cardholder sign a form acknowledging the customer has the written permission for the transaction.

5. Post your return/cancellation policy on your website. If the sale is for a subscription service, have the cardholder/client sign an acknowledgement of cancellation policy. Don’t bury it in a long contract.

4. Use a payment form and have the cardholder enter the card information, billing address, zip code and CVV2 data on all transactions, rather than keying the card over the phone or via a service technician.

3. Consider tightening the fraud protocols on the gateway to help reduce possible chargebacks (eg: decline if billing address and zip code do not match). Although this may result in more declines, it will reduce the possibility of a transaction getting labeled fraud by the card issuer.

2. If you are creating or setting up a client with a recurring payment, be sure to collect the correct BILLING address and zip code for the card being processed. Too many times, we see franchisees use the business address where the product is being delivered.

1. If you have a recurring billing service and a client is not coming with the frequency you would expect, be proactive and reach out to see if they still want the membership. Do this by email so that the communication is documented. Don’t let six months go by and give a cardholder the opportunity to charge back under the pretense that they may have called to cancel but your company or person did not close the account.


Bonus Tip
You will at some point in your business encounter a chargeback. Have your cancellation policy, web page, email notification, and copy of your invoice in a folder ready for submission to best contest the chargeback.


Gain The Advantage

We know keeping up with the ever-changing nuances of payments can be a lot to keep up with.  This is why FPN developed The Advantage Program, a trio of solutions designed to help protect your business against chargebacks and data breaches.* Options may include:

  • Get reimbursed for chargebacks up to $1,000*
  • Should you suffer a data breach, you’ll be insured for up to $100,000*

Stop wasting time chasing down funds so you can focus on new customers. Contact FPN today to learn how The Advantage Program can give you peace of mind and protect your business.


* The FPN Advantage program is primarily for what card brands consider ‘card present’ transactions. Protection terms subject to change. Please contact us should you have any questions.