3 tips to reduce chargebacks on your online orders

Whilst online ordering is quicker, safer, and more convenient than ever, there has been a steady increase in the number of chargebacks being received across the food delivery and takeout sector.

Part of this increase is down to businesses making it easier for customers to request a refund or dispute an order, with quite a lot of national press coverage about certain online platforms, that don’t even contact the restaurant before issuing the customer with a full refund.

Another factor is people trying to cheat the system, either by using stolen card details to place orders or simply claiming to their bank the order never arrived or was not to a satisfactory standard

When you have your own online ordering system, to service your customers direct, you have more visibility and control over refunds and chargebacks, but there are three key elements you can put in place to minimise the chances even further.

  1. Latest payment technology – making sure your online ordering uses the latest payment service is critical. The use of Apple & Google Pay and 3D Secure V2, helps to ensure that the transaction is both secure and legitimate and the use of fraud screening reduces the chance of illegal use of stolen card details
  1. Keep your customers informed – keeping your customers up to date through the order process helps to minimise issues with delivery times and order details.  Ideally you should let them know when the order is accepted, if there are any delays and when the order is ready or on its way
  1. Get proof of delivery – making sure you have proof that you delivered the food and was received at the correct address will help to illuminate any claims that the order was not received and ideally getting photographic proof of delivery is best.

At App4, we use Stripe to power our payments implementing the latest payment and fraud technologies to ensure the payment taken is valid.  Our ordering system automatically updates customers on the status of the order and if the order is delayed, it will let the customers know what additional time has been added.

App4 also integrates with Shipday so you can manage all your deliveries and drivers with ease. Shipday provides a simple and effective way to capture proof of delivery using your driver’s mobile phone.

If you’re looking for an online ordering solution that is designed to minimise chargebacks, without costing you more time, give us a call on 01332 418 573 or click here to arrange a call back

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