Blog | Merchant Processing News: Pinpoint Payments

Shipping Practices & Chargebacks | Pinpoint Payments

Written by Benjamin Grossman | Dec 15, 2016 5:00:00 AM

You did everything right. You took the order, packed it and shipped it out the same day it was received. The customer may have even signed a receipt for the package.

So, what’s with the chargeback?

Sometimes things go wrong in shipping. A fragile or not-so-fragile product can dent or break. A bottle can open, spill and ruin the rest of the order.

And up to 86% of consumers, for whatever reason, would rather deal with a credit card company than you. The chargeback fees and fines—the potential loss of processing privileges—that’s your problem, not theirs.

Here are some ways to mitigate the issue.

  • Understand your carrier’s content restrictions: Even if federal laws don’t label something hazardous, there can still be restrictions. The U.S. Postal Service has special rules about everything from fresh foods and plants to battery-powered toys. Check your shipping provider’s rules and follow them.
  • Secure potentially risky products: Some products may seem harmless, but could create problems in transit. Lithium batteries need to be in pressure-proof cases, or they can explode. Common liquids, like concentrated supplements, can cause accidents if they leak. Be sure to properly seal them
  • Consider using a shipping partner: The best scrutinize every product and have time-tested solutions for difficult merchandise. They also know each carrier’s rules and how to set up procedures to meet your unique needs.
  • Make it easy for your customers to get a refund: Pinpoint Assure Shipping Insurance gives customers a neutral third party to contact when there’s a problem with their order. They can file a claim 24/7, by email or phone and get a fast refund. For customers, it can be easier than contacting their bank. And that can protect your chargeback ratio.

Best shipping practices can enhance your reputation. Both with customers and credit card processors.

Click here to learn more about Pinpoint Assure Shipping Insurance.