Handling disputes from customers can be one of the most painful parts of running a business. The absolute best way to manage them is to stop them from ever occurring in the first place. There are a number of tactics you can use to do this, which are discussed in this document.
For guidance on how to respond to disputes after they’ve been filed, please refer to the document on managing disputes.
Know your customer ↑ Back to top
The more information you collect about your customer during the checkout process, the easier it is for their bank to verify that the purchase is legitimate. You should strongly consider collecting the following pieces of info, even if they are not strictly necessary for your own business operations.
- Customer name
- Customer email
- CVC number on their card
- Full billing address and postcode
- Shipping address (if different from billing)
Be responsive ↑ Back to top
Many disputes occur because customers are unhappy with the product or service they received. If you are helpful and responsive to your customers (for example, by handling issues quickly or refunding orders in a timely manner), they will be less likely to file a dispute.
Here are some specific tips that may help prevent disputes:
- On your website, make your contact details, refund policy, and customer service information easily available.
- Be sure that the WooCommerce emails that keep your customers updated about their orders are all enabled.
- Consider having a “Terms and Conditions” checkbox that customers must check before placing an order.
- Provide shipment tracking information to customers as soon as you can, if you are shipping physical goods.
- Ensure that your bank statement descriptor follows the requirements and recommendations we have.
Avoid fraud ↑ Back to top
WooCommerce Payments has built-in measures to prevent fraud, but no fraud prevention system is perfect. If you suspect a payment on your site is fraudulent, it is best to refund it right away. This avoids the possibility of the true cardholder disputing it in the future.
To help detect potentially fraudulent transactions, WooCommerce Payments provides a Risk Level column on the Payments > Transactions screen. This column will display Elevated on transactions that are not considered risky enough to block automatically, but do have some suspicious signals. For Elevated transactions, you should contact the customer before fulfilling any items associated with the product, and if you do not receive a response, consider refunding the order.
There are also a range of extensions that can be helpful in preventing fraudulent transactions via other mechanisms, including: