# 10 Things Online Retailers Can Do Today to Reduce Chargebacks > Online retailers can reduce chargebacks with 10 operational changes: clear product descriptions, 24/7 customer contact options, recognizable billing descriptors, signature-on-delivery confirmation, visible refund policies, and proactive outreach before disputes escalate. Most friendly-fraud chargebacks stem from customer confusion: a billing descriptor the customer does not recognize, a recurring charge that arrived unannounced, or a return policy that was hard to find. ## Key facts - Chargeback fees typically run $20 to $100 per dispute, on top of the lost transaction value - A chargeback ratio above 1% of monthly transactions triggers card network monitoring programs - Unrecognized billing descriptors are the most common trigger for unnecessary chargebacks - A refund closes the dispute before it becomes a chargeback; refunds do not count against your ratio - A signed delivery confirmation is the primary evidence against non-receipt claims - Policy links at checkout, in confirmation emails, and on product pages reduce disputes before they start ## Frequently asked questions ### What is a chargeback ratio and why does it matter for my store? Your chargeback ratio is the percentage of transactions that result in a chargeback, calculated by card networks over a rolling period. If your ratio exceeds the network threshold (typically around 1% for Visa), you risk being placed in a monitoring program or losing the ability to process credit card transactions entirely. ### What is the single most common reason customers file chargebacks? The most common trigger is an unrecognized charge on a credit card statement. When the billing descriptor does not match the store name the customer remembers, they assume fraud and dispute the charge. Updating your descriptor to match the name shown on your website resolves a significant share of these disputes before they start. ### How does offering a refund help reduce chargebacks? A refund closes the dispute before it becomes a chargeback. Chargebacks, whether ruled in the merchant's favor or not, count against your chargeback ratio. Refunds do not. Reaching out to a dissatisfied customer and offering a refund is almost always cheaper than the chargeback fee plus the cost of the dispute process. ### Does requiring a signature at delivery actually reduce chargebacks? Yes. A signed delivery confirmation is evidence that a customer received the order, which is the primary counter to claims of non-receipt. It is not free, signature confirmation adds carrier cost per shipment, but for high-value orders it significantly strengthens the merchant's position in a dispute. ### Should I require a credit card for a free trial? No. Collecting payment details at the start of a free trial increases the risk of forgot-to-cancel chargebacks when billing begins. Waiting until the trial ends and the customer actively chooses to subscribe results in fewer involuntary disputes and demonstrates genuine purchase intent. ### How does monthly billing reduce chargeback exposure compared to annual billing? When a customer pays for a full year of service upfront and files a chargeback, even on day 360, the entire annual amount is at risk, not a prorated share. Monthly billing caps the exposure to one month's charge per dispute and gives merchants more touchpoints to resolve issues before they escalate. ### What should a merchant's 24/7 customer contact option include? At minimum, merchants should offer one always-available contact channel: a monitored email account, a chat widget, or a customer portal where orders can be reviewed or cancelled. The easier it is to reach you, the less likely a customer is to go directly to their bank to resolve a problem. ### Where should I display my return and refund policy to prevent disputes? Policy links should appear on product pages, at checkout, in shipping confirmation emails, and in any follow-up communication. Customers who cannot find a return policy quickly are more likely to file a chargeback than to look for a way to contact the merchant. --- Source: [https://www.clear.sale/blog/10-things-online-retailers-can-do-today-to-reduce-chargebacks](https://www.clear.sale/blog/10-things-online-retailers-can-do-today-to-reduce-chargebacks)