Custom Digital Disclosures
Utilizing Disclosures to Reduce Fraudulent Chargebacks
What is a Disclosure?
A disclosure, sometimes called a disclosure statement, is a way for a business to make certain information known to the customer at the time of purchase and acknowledged by a signature. Disclosures are typically written in plain language to ensure the customer clearly understands the statement that they are signing. Typically,a disclosure is provided before a financial transaction to explain the terms and conditions involved in accepting the transaction; once signed, both parties enter into a contract with each other.
Purpose of a Disclosure
The general purpose of a disclosure is to make clear the terminology, terms, conditions, exclusions, and inclusions of a contract.. This statement conveys the intentions, obligations, and duties of the organization to the customer. This also gives the customer the opportunity to ask questions regarding the product or services they will be receiving. After agreeing to the terms of the disclosure, the customer will sign the disclosure to accept the terms and conditions and or to acknowledge that they are satisfied with the service received.
Use Cases
Fraudulent Charges: this is where a cardholder claims that they did not authorize a purchase. Ways a business can fight this is by uploading a photo of the purchasers’ drivers license, including a general authorization disclosure, and or signature. With this proof a business can dispute the fraudulent claim.
Service Unacceptable: this is where a cardholder claims the product or service received was defective, damaged, and or not as described. A disclosure stating that customer satisfaction was met at the time of purchase with a signature can help to fight this type of claim.
Fighting Chargebacks with Disclosures
If 81% of chargebacks are fraudulent, then criminals know exactly what shortcomings in your operations or paperwork to identify so they receive a free move, HVAC system, or transmission. The problem is you don’t know who is looking to acquire your services free of charge, and therefore must treat everyone the same.
By creating custom disclosures at checkout that require additional signatures, this allows your business to confirm delivery in full, of your products and or services, and that the customer was satisfied with the delivery. The key is to provide statements with signatures for all of the most common chargeback claims.
These disclosures will deter most fraudulent claims by eliminating all the common loopholes. If a customer does attempt to submit a chargeback, Sky can easily produce documentation and disclosures that counter this claim so that your business does not fall victim. These disclosures are embedded into Sky’s operations suite of software and are essential to deliver results.