With every card payment you take, you and your customer are entering into an agreement. This means that you can be held liable for the amount of payment if a chargeback or dispute related to the transaction were to occur.
By following these guidelines, you may be able to reduce the likelihood of receiving a chargeback and you'll be more prepared if you do receive one.
Best Practices for Keyed-In Payments
Keyed-In payments are inherently riskier because the customer does not have to be physically present. Fortunately, there are some simple precautions that you can take to guard against disputes.
Request Card Information
Make sure a customer can provide the name on the card, the billing address, card number, expiration date, and the CVV code on the back of the card.
Obtain a Signature
If you are processing a large transaction, have your customer sign an invoice, a credit card authorization form, or a contract that authorizes the payment and outlines your refund policies. Once signed, make sure to keep them on file. If the customer isn't present for the sale, be sure to write why on the signature screen, for example, write "phone auth" or "Internet order."
If you are shipping a product, make sure to keep the tracking information and a delivery receipt. For large orders, require a signature confirmation for the delivery.
Know Your Customer
Get to know your customer before processing a large transaction. Verify your customer's identity, billing address, and business if applicable. Do a Google search or ask to a government issued ID. We recommend matching the name on the ID to the name on the payment card. These precautions are highly recommended for invoice payment.
Protect Yourself from Scams and Fraud
Almost every business has the potential to be scammed. It can take months for cardholders to realize that their card is missing or compromised, which means that your business could be liable for fraudulent payments months after they are taken. While WallP works hard to protect you from fraud or scams, you are always the first and best line of defense.
Avoid Stolen Card Scams
Some scam artist use compromised credit card information in an attempt to convince you to send them money or goods. These people often place their orders via email or phone to mask their identity.
The scam artist sometimes tries to get you to use part of the credit card payment to pay a special vendor or shipping company. The instructions often involve some sort of irreversible money transfer such as wire, Western Union, money order, or bank transfer. Never use part of payment to send money to third-party vendor or shipping company recommended by your customer.
Recognizing Fraudulent Buyers
Here are some possible signals from buyers that you should look out for when you're accepting payments.
Buyer places an order via email or phone.
Buyer claims to be hearing impaired or in the hospital.
Buyer places unusually large orders in a short period or insists on expedited shipping/service.
Buyer requests international shipping.
Buyer's credit card is declined.
Buyer requests an order to be split between multiple credit cards.
Billing and shipping ZIP codes don't match.
Buyer gives special instructions such as paying third-party vendor, person, or shipping company.
- Buyer has a large order of goods that can be easily resold (e.g. a lot of blank t-shirts).
If you suspect fraud, stay calm and let the customer know you can't accept the sale. Contact us if you have questions or concerns about a customer.
*Never store cardholder data (such as the credit card number) on any systems (on paper, online, or in an application).
Tips for Processing Payments
If you're processing multiple transactions for the same customer over a period of time, obtain a signature for each individual payment. In the item description clarify that the payment is an "installment payment."
If you have a recurring charge with a client, acquire written cardholder permission to periodically charge for the recurring services or goods. On the written agreement make sure to include:
frequency of the charges
the duration for which cardholder permission is granted
the cardholder's signature
If you wish the refund a customer for a payment, always issue the refund directly back to the payment card. If you must provide a refund via cash, check, or money order, make sure to obtain a signed agreement that your customer received the refund.
Never have your customer sign a statement waiving their right to dispute the transaction with the card issuer. This is a network violation and will impact your chances of winning a payment dispute if one occurs. Instead, follow the guidelines in this articles to help put you and your customer on the same page regarding expectations for the completion of transaction.
Make Your Receipt Information Recognizable
Add your contact information
Add your phone number, address, website, and social media pages to your receipts. This may help a customer reach out to you directly if something were to go wrong with a sale, rather than file a dispute with their bank.
Publish a refund policy
Add a refund or cancellation policy to your receipts.
Make your business name recognizable
Make sure the business name on your receipt is recognizable. This is the name that shows up on a customer;s bank statements. If a customer does not recall a name on their statement, they may be more inclined to file a dispute.
If you do not have a business name add a description of what you sell and your location to your business name. For example, if you are a taxi driver in Jaipur, write Taxi - Jaipur, Rajasthan.
Write a description of the goods or services you sold
Provide an accurate description of what you sold for every transaction. This can help jog a customer’s memory and prevent a dispute from happening.
Collect Customer Feedback
Use WallP Feedback to collect feedback from your customers about their purchase. If a customer has a problem with a sale, they can reach out to you directly from their digital receipt. You may be able to respond, issue a refund, or resolve the issue without ever having to enter the dispute process.
Best Practices for Process Card-Present Transactions
WallP merchants start off with a per transaction limit of ₹1,00,000. If you have general questions regarding large transactions, contact us. If you would like to accept individual transactions above ₹1,00,000 each, you'll need to split the payment into multiple installments. Make sure to record of the receipt number and the total amount charged for each installment. Please note that in order to ensure a secure purchasing environment, we may periodically reach out to customers for additional information regarding their business or transactions.
Note: Merchants who process more than ₹10,00,000 annually will be asked to sign a Commercial Entity Agreement, acknowledging that the payments processed are associated with a commercial business.