Top 5 ways retailers can reduce chargebacks and prevent fraud

Top 5 ways retailers can reduce chargebacks and prevent fraud

Dispute resolution is one of the biggest pain points for customers anywhere today. The process can be equally frustrating for retailers and merchants, who may be at the receiving end of payments fraud. Given that the UAE is a vibrant consumer market, with retail sales predicted to reach Dh259bn by 2025, according to a report by the Dubai Chamber of Commerce and Industry, it isn’t surprising that there are strong consumer protection laws in place. These laws safeguard consumer rights in cases of disputes. Chargebacks are among the biggest issues facing merchants today. A chargeback is when a payment is reversed after a customer disputes a charge on their account statement. For example, a customer might have received a damaged product or the merchant made a processing error and accidentally charged the customer twice. In these cases, a customer can file a chargeback with their bank for transactions made on credit or debit cards. Once approved, the customer receives the transaction amount back in full. There’s a difference between chargebacks and refunds. With a chargeback, the customer contacts the bank (not the business) to reverse the payment. The chargeback process takes longer and involves a few more stages than a