How to Increase Approval Rates and Minimise Chargebacks Through Prevention

Chargebacks are more than a refund—they are a business risk.

They cost you time, money, and customer trust. If you want to protect your margins and improve your transaction approval rates, prevention is your best strategy.

Instead of focusing only on the dispute process, it’s time to look at how to prevent chargebacks in the first place. With smarter risk management and better payment support, you can reduce friction, improve customer experience, and protect your revenue.

Why Chargeback Prevention Matters

Chargebacks don’t just happen—they are triggered by specific events in the customer journey. It might be confusion over billing, unclear return policies, or unresponsive support. Sometimes, it's fraud.

The key is to prevent these events before they lead to disputes.

Recent research by Chargeflow suggests that up to 80% of chargebacks are a form of friendly fraud—when customers dispute legitimate transactions, often due to miscommunication or forgetfulness. This shows how much room there is to improve outcomes through better communication and process clarity.

The Hidden Costs of Poor Prevention

You don’t just lose the sale when a chargeback happens. You also face fees, admin costs, lost products or services, and long-term damage to your reputation.

High chargeback rates can hurt your standing with payment providers. This may lead to lower transaction approval rates, especially if your business is flagged as high-risk.

A 2023 report by Chargeback.io found that online fraud grew by 15% year-over-year, with card-not-present transactions being the most vulnerable. That increase directly impacts merchants who lack effective chargeback prevention tools.

How to Reduce Chargebacks Proactively

Chargeback prevention starts with looking closely at how your business handles payments, support, and customer expectations.

Here’s what you can do:

1. Improve billing clarity
Use clear, consistent billing descriptors. Many chargebacks happen because customers don’t recognise the charge on their statement.

2. Set expectations early
Make your return policy clear. Send confirmation emails with detailed order summaries and timelines.

3. Respond faster to complaints
Many customers file chargebacks because they feel ignored. Make sure your support team is responsive and visible.

4. Monitor patterns
Look for repeat disputes around the same product, service, or process. Use this data to adjust.

5. Secure your transactions
Use tools that help detect fraud before it happens—like AVS, CVV matching, or behavioural monitoring.

Why Payment Support Matters

Prevention isn’t a one-time fix. It requires consistent, proactive action. That’s where payment support becomes critical.

When your tools work in the background to catch issues before they become chargebacks, your team stays focused on growth—not damage control.

Finera’s support is designed to help you:

• Keep dispute rates low
• Respond quickly when needed
• Build a process that protects both revenue and customer experience

Protect Revenue with Prevention

Managing disputes after the fact is expensive. Preventing them is smarter.

With the right tools, you will:

• Reduce fraud
• Maintain customer trust
• Increase approval rates and minimise chargebacks

Chargeback prevention isn’t a separate task—it’s part of how you manage risk and deliver good service.

See how Finera’s payment technology can support your chargeback prevention strategy—get in touch with us today.