Payment Processing Best Practices: How to Mitigate Risk – Part 1

Matthew D’Anjou


As we move to a more contactless world where a larger percentage of payments occur online, accepting credit cards can significantly increase your businesses sales. Accepting credit cards can seem tricky, especially in the B2B space where higher value transactions can add layers of additional risk.

There has been a significant rise in B2B payment volume, so we put together a 2-part series of best practices for mitigating risk and following proper data security measures when it comes to payment processing.

In part 1, we’ll cover best practices to ensure you are set up to mitigate chargebacks (specifically for those high value transactions). And in part 2 we’ll cover how you can protect cardholder data, increase customer confidence by building a trusted brand, and the basics of data security.

Before we get started let’s go over some frequently used terms with which you may not be familiar if you are new to accepting digital payments.

  • Chargebacks: When a cardholder either didn’t authorize a charge or has an issue with the item or service for which they are charged and initiates a process with their card provider to dispute the payment transaction.

Let’s get started.


  1. Verify AVS & CVV: The best way to mitigate a chargeback is to take steps to prevent one. Always require the cardholder’s address (AVS) and Card Verification Value (CVV) for each charge to limit the potential risk of a fraudster using stolen credit card information for a purchase.  CurrencyPay’s default settings include the requirements for AVS and CVV verification, so keeping these settings covers this step!
  2. Clear Sales Policies: There are a few common reasons for a chargeback besides fraud, and minimizing those will help to educate your customers, decrease disruption in your sales revenue, reduce costs, and keep you in good standing with your processor and the card brands.

    To do so, you should:

    1. Clearly define your refund policy: A customer should always be able to easily understand their rights to a refund or a return.

      TIP: By adding your refund and return policy to your Terms & Conditions inserted in the company footer area for all your quotes, invoices, and receipts, you have clearly communicated your policy to your customer. This can be done very easily through CurrencyPay:

      1. Card Not Present Transactions: For online purchases, include e your refund policy in the terms and conditions on your checkout page and in printable or savable (pdf) quotes and invoices. If you have a “no returns or refunds policy”, it’s recommended to have your customers acknowledge that they’ve reviewed and agreed to the policy before finalizing the purchase.
      2. Card Present Transactions: With a customer in store, it’s best to have your refund policy clearly displayed by check out, as well as on the sales receipt or invoice. If you have a “no returns or refunds policy” we recommend requiring customers to review and sign a receipt or invoice clearly informing them of the policy.
    2. Offer Good Customer Service: If a customer has questions or concerns about their purchase, it’s best to clearly disclose how the customer can contact your company’s customer service personnel. An email address, phone number, or a contact portal are commonly used and should be easily accessible. Avoiding inquiries or trying to prevent a refund only increases the likelihood of a customer initiating a chargeback and reduces customer confidence in your products and service, possibly damaging your brand reputation.
    3. Display Detailed Product Descriptions: Ensuring the customer has a clear understanding of the product or service they are purchasing and avoiding misleading descriptions also helps reduce chargebacks.
    4. Transmit Clear Billing Information: When a customer reviews their monthly card or bank statement, a customer may forget about purchase(s). Ensuring a clear billing descriptor (how your company appears on a card or bank statement), along with a phone number to reach you increases the chances that their first step will be to contact you and not their card issuer thus giving you another chance to prevent a chargeback.
    5. Alerts on Recurring Charges: If a customer uses their card to purchase a product or service that’s billed on a set recurring schedule, it’s always recommended to notify the cardholder prior to the charge.

That’s all for Part 1. We’ll be back next week with part 2, on cardholder and data security. If you have any questions or would like to speak with a Currency specialist to get started with CurrencyPay®, please reach out to us here.

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