Reducing Chargebacks: A How-To For The DRTV Marketer


drtv marketingAs a DRTV marketer, reducing chargebacks a critical component to the financial health of your business. Essentially, chargebacks were created to protect consumers against spammers – and these chargebacks are heavily in favor of your customers.

Chargebacks are more detrimental than a refund, as your DRTV marketing company must pay higher rates and has a greater reserve held from you. When chargebacks get too high, your merchant account could be terminated.

That’s why your DRTV customer service needs to implement proven policies and best practices for successfully reducing chargebacks. You must be completely prepared.

Here’s how to prevent chargebacks:

  • The safest approach is to give your customers a quick refund – there are no second chances once your DRTV marketing company is in chargeback trouble.
  • You must avoid writing a refund policy that’s overly protective of your business – your product costs are minimal compared to the damage even one chargeback may cause.
  • Reducing chargebacks with the help of an AVS (address verification service) addresses instances of fraud.
  • Pay close attention to how your charge appears on customers’ credit card statements – your billing descriptor should be recognized immediately by product or DRTV marketer website name and a phone number.

Here’s how to effectively deal with chargebacks:

  • DRTV customer service benefits greatly from over-communication about when an order is going to arrive. Be as specific as possible about the expected arrival date and tracking.
  • Communication is key when it comes to reducing chargebacks, so ensure your customers don’t face any challenges when they want to cancel a shipment or return an item.
  • In product packaging, it’s a best practice to include a slip that explains how a customer may easily return your product.
  • As a DRTV marketer, a golden rule is to never bill your customer’s credit card until the product is ready to ship.
  • Free trial offers should actually be free – don’t merely roll new customers right into a plan with recurring payments, but rather, give them an opt-in option at the end of the free trial.

Reducing chargebacks for your direct response marketing company is an effort in communication and also in not making promises you aren’t able to keep. It’s about treating your customers with respect and providing a refund with little debate.

In the end, these strides towards reducing chargebacks are going to project your DRTV marketing company financially, allowing you to continue building your brand and your bottom line.

Ready to learn more about reducing chargebacks for your DRTV marketing company? Call 800-808-3304 or click here to speak with a direct response marketing expert at Moulton Fulfillment.


About The Author

Patrick Moulton specializes in logistics and marketing with 15 years of industry experience. He is currently enrolled in the USC Marshall School of Business Executive MBA program.