Types of Chargebacks

There are several types of chargebacks, each with its own reasons and implications:

• Friendly fraud: This occurs when a customer disputes a legitimate charge to avoid paying for a purchase.
• Purchase disputes: Customers may dispute purchases if they believe they were overcharged, received the wrong item, or were dissatisfied with the product or service.
• Identity theft: If a customer’s credit card information is stolen and used without their knowledge, they may dispute unauthorized charges.
• Technical errors: Sometimes, technical glitches can lead to double charges or incorrect amounts, causing customers to dispute transactions.

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Holiday Season Surge

The fall and holiday seasons are particularly vulnerable to a surge in fraudulent chargebacks. Here’s why:

• Increased transaction volume: With the holiday shopping rush, the number of transactions skyrockets, creating more opportunities for fraud to slip by merchants unnoticed.
• Focus on sales: Merchants are often so focused on maximizing sales during the holiday season that they may become less vigilant about fraud prevention measures.
• Card not present (CNP) environment: Online transactions, which are more common during the holidays, are easier to dispute as there’s no physical signature to verify.

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Dealing with Chargebacks

How to Prevent?

To protect your business from the haunting specter of chargebacks, consider the following preventative measures:

• Audit your return/refund policy: Ensure your policy is clear, fair, and easy for customers to understand. This can help reduce disputes.
• Check billing descriptors: Use clear and accurate billing descriptors to help customers identify your charges and avoid confusion.
• Implement a fraud detection strategy: Utilize fraud detection tools and techniques to identify suspicious activity and prevent fraudulent transactions.
• Use Address Verification Systems (AVS): Verify that the billing address provided matches the address on file with the card issuer.
• Require Credit Card Verification Codes (CVV): This adds an extra layer of security by requiring customers to enter the three-digit code on the back of their credit card.
• Implement two-factor authentication: Require customers to provide a second form of verification, such as a code sent to their phone, to confirm their identity.

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How to Fix:

• Educate your customers: Provide clear information about your return policy and payment options to help prevent misunderstandings.
• Offer excellent customer service: Respond promptly to customer inquiries and address any concerns in a timely manner.
• Invest in refunds instead of chargebacks: In some cases, it may be more cost-effective to issue a refund to a customer rather than fight a chargeback.

We were thrilled to expand the Big Sky Commerce team in 2021 with the addition of Tim Sweeney and Jordan Nelson. Between Tim’s expertise in the industry and Jordan’s fresh outlook on business and marketing, they’ve already become incredible assets to our clients and staff members.

Tim is our newest Account Executive, and he began working at Big Sky Commerce in May 2021. He worked for the largest merchant processing company in the world for over 16 years prior to joining our team, and now he appreciates our family-owned and community-driven mission more than ever. Tim moved to Missoula in 1978 to complete his college education and immediately found himself at home—when he’s not at work you can often find him golfing, recreating outside or cheering on the Griz.

Jordan began working as our Marketing Intern in September 2021. She grew up in Bigfork and came to Missoula to attend the University of Montana, where she fell in love with the unbeatable access to outdoor recreation. After studying marketing and business in school, she felt like Big Sky Commerce was a great place to start gaining experience. Like Tim (and the rest of our team), Jordan loves the community-oriented outlook at Big Sky Commerce.

It’s been great having Tim and Jordan join us this past year, and we can’t wait to see what else they bring to the team in 2022.

The Big Sky Commerce team is excited to be serving yet another Missoula business: Pink Grizzly. You may know this small business as your go-to for Christmas trees and wreaths in the winter, plant starts in the spring, landscaping necessities in the summer, or all the above and more. Pink Grizzly is a year-round greenhouse and beloved Missoula business that’s been serving our community since 1987. The owner, Shane Clouse, runs the business with the help of his family, who made Missoula home in the 1950s.

Pink Grizzly was originally working with a big out-of-state processor that couldn’t offer local representation and hands-on customer support, so they decided to switch things up. We took them on as a client in Spring 2021 and were thrilled to lower their fee structure and streamline their payment processing right away.

For Shane, working with a local company has made all the difference. He explained, “Big Sky Commerce provides us with very competitive processing rates and, more importantly, provides our business with immediate, family-style services when we need help. Their representatives give you attentive services you can’t find through a call center!”

We look forward to working with Pink Grizzly for years to come, and we encourage everyone to swing by this holiday season and pick out the perfect Christmas tree and wreath for their home! You might just catch one of our team members there doing the same thing.   

Everyone on the Big Sky Commerce team is grateful to live and work in a place like Missoula, and that’s why we make time to give back. After raising their two children and starting a business in Missoula, owners Kevin and Carolyn feel especially passionate about keeping their community happy and healthy for generations to come.

One way our team decided to give back is by “adopting” and maintaining the N. Reserve portion of US Hwy 93 in Missoula. Big Sky Commerce adopted this section back in 2019, and we’ve been organizing trash cleanups and caring for the landscape ever since. We love this ongoing project because it’s not just big box stores on N. Reserve—teachers, medical personnel, small businesses, young families, and retirees live and work along this stretch.  

You can spot folks from our team cleaning up the highway 2-4 times a year, and we hope our efforts inspire other businesses and organizations in Missoula to give back in their own way as well.

Merchants are being bombarded almost daily by phone calls and emails from payment processors trying to win their business. Processors may offer rates that seem lower than what you are currently paying. Be sure to read the fine print before changing processors. We have had merchants leave us for “the better deal” only to return once they found out that the deal was not quite as good as they expected. Before changing processors, do your homework. Read their online industry reviews. See what others are saying about them. Make sure they intend to support your business needs throughout the contract period.

Big Sky Commerce is proud of its current merchant and online reviews. We have an A+ Rating with the Better Business Bureau as well as several others across the internet, including Merchant Maverick and Free Merchant Account.

Recently, Big Sky Commerce received an A rating from Card Payment Options. All reviews for Big Sky Commerce talk specifically about our great rates and excellent customer service. Don’t be swayed by processors who get you hooked and move on. Be a savvy business person. Do your research. You’ll be glad you did!