How to Avoid a Credit Card Chargeback and Obtain Buyer Intent

How to Avoid a Credit Card Chargeback and Obtain Buyer Intent

If you work for an auto dealership, you may, unfortunately, be familiar with the following scenario: A customer calls your dealership to book a service. You don’t have one of the necessary parts on hand, so your dealership orders it and plans to bill the customer when the service is completed. However, the customer ultimately ends up going elsewhere for the service, leaving the dealership to cover the cost of the ordered part.

Capturing buyer intent is a goal for any auto dealership. It ensures that the orders you place and conversations you have really go somewhere. It helps your dealership secure its cash flow and establish accurate expectations.

What if there was a better way to secure buyer intent, protect your dealership from chargebacks and ensure payment for your orders? There is: It comes in the form of remote signature capture.

How to Reduce Your Risk of a Credit Card Chargeback

Over-the-phone payments may account for a significant portion of your credit card sales. That said, these card-not-present transactions have their downsides: They come with higher credit card processing rates, as well as a greater risk of fraud, not to mention, that it’s easier for customers to back out of a purchase if they never sign a receipt.

Remote signature capture is a seamless alternative to the drudgery of faxes and mailed invoices. It works with a paperless Virtual Terminal, which is a web-based program that records transactional information and stores it digitally. PayJunction’s Virtual Terminal uniquely allows merchants to email a digital receipt to a customer to sign via mouse on a computer or finger on a smartphone. The signature is then stored with the transaction in the cloud. If a dispute arises, it’s easy to search for the receipt using the customer name, date, transaction amount, order number or a custom field.

Digital signatures carry the same legal significance as traditional signatures. By obtaining a signature for over-the-phone payments, you can order parts with confidence.

Confirming Cardholder Authorization

Your dealership may also encounter prospective customers who wish to pay with a credit card not in their name. Examples include a college student who has access to a parent’s credit card or a husband using a card with his wife’s name on it.

In some cases, this kind of transaction is authorized even though the cardholder and the customer are not the same person. You can confirm this is the case by obtaining a remote signature from the cardholder. This measure will help prevent friendly chargebacks, which occur when a cardholder does not recognize a purchase, and catch fraud in the event that the transaction is illegitimate. With remote signatures, you can avoid turning customers away.

With a Virtual Terminal and digital signatures, you don’t have to store receipts the old-fashioned way and run the risk of them becoming lost, crumpled, faded or destroyed. Additionally, you save money on storage costs and paper receipt materials, improve time management and reduce time spent filing away paper receipts. If you manage a multi-location or multi-department dealership, you can also cut the costs of your courier service with receipts that are digitally accessible from any Wi-Fi enabled device. Managing your signatures and obtaining authorization has never been easier.

Get remote signatures for your dealership.

SPEAK WITH A SPECIALIST

What payment-related challenges does your dealership face? What questions do you have about this technology? We’d love to hear from you!

About Christina Lavingia

Christina is the content marketing manager for PayJunction. She oversees editorial voice and style across departments.

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