What's the best way to avoid chargebacks in an ecommerce web app?

Question

Is there a particular payment method that is less susceptible to chargebacks than others?

Answer 1

provide a good product with better service. Dont leave customers hanging after the sale! I don't see how changing a processor would help with chargeback. (maybe with fees associated with chargeback)

Answer 2

I use PayPal, and I think I've had maybe 2 chargebacks in the last 5 years.

I think the frequency of chargebacks is more dependent upon the quality of the products and services you offer than on the provider of the payment mechanism.

Answer 3

The best advice on this I've read:

How we reduced chargebacks by 30%:

I decided to register 37signals-charge.com, redirect it to 37signals.com/charge, write up a page explaining why there’s a charge on your card, and put that URL on people’s charge slips instead of “37signals, LLC” or “Basecamp” or “Highrise” etc.

Now when someone buys something from us, this line item shows up on their credit card statement:

37signals-charge.com 800.xxx.xxxx IL

Visiting that URL takes you to this page where we explain the charge, the products, some suggestions if you don’t recognize the products, and a link to our billing support form someone needs additional help.

Summary:

• Sell something people will be happy with
• Provide a great purchasing experience from start to finish
• Make it easy to figure out where/how the charge came from later