The Importance of Merchant Training
What do you think is the most common bankcard chargeback reason? Would you believe illegible receipts or no receipt at all?
According to Visa, 34% of their chargebacks are due to lack of receipt or an illegible receipt. Followed, in decreasing order, by duplicate processing (21%), non-imprint (10%), credit not processed (5%) and, as unbelievable as it sounds, no signature at all (3%).
What causes an illegible sales draft and what do your merchants need to know to prevent/decrease them in the future? Illegible sales drafts can be caused by something as simple as an old ink cartridge, printing on the end of the paper roll, using colored paper on which the ink cannot be read, and using paper which sticks to the roll and interferes with printing.
Duplicate processing and credit not processed are both mainly caused by operator error or oversight, and are easy to correct, if merchants are properly trained. The merchandise may not have been credited after a return, the credit may have been processed late, or a draft may not have been voided.
What about no imprint, no signature?
It is imperative that an imprint of the card be made if the numbers are entered manually on the keypad. As important as making the imprint is verifying that it is legible. Some merchants forget to have the draft signed while others process the transaction without the card present.
Together these reasons account for 73% of chargebacks at Visa. If your merchants are properly trained, and their staff is properly trained, most of these can be avoided or lessened. A few extra minutes can save everyone some money.
