Best Practices

Best Practices for eCommerce Websites

A complete guide to running a compliant, fraud-resistant eCommerce business. Covers the website requirements Visa/Mastercard enforce, the three causes of chargebacks, eight pro fraud-prevention tips, and ready-to-use policy templates.

Website Requirements Checklist

For your merchant account to be approved quickly and efficiently, you must clearly display your contact info and your intended refund, exchange, warranty, and cancellation policies where customers can easily find them.

The following are required per Visa/Mastercard regulations:

Refund / Cancellation Policy

Clearly state your return window, conditions, and process

Privacy Policy

How you collect, use, and protect customer data

Terms and Conditions

Rules governing use of your site and purchase of goods/services

Product / Service Descriptions with Pricing

Specific, accurate descriptions — no vague language

Customer Service Phone Number & Hours

Visible on every page — not just the contact page

Shipping & Delivery Information

Timeframes, carriers, costs, and international handling

128-bit SSL Certificate

Usually provided by your shopping cart or payment gateway

The Three Primary Causes of Chargebacks

Chargebacks cost $25+ per incident — plus you lose the full sale amount. Most are caused by one of three preventable issues:

1

Customer expectations not met

Due to misinterpretation of products or services

2

DBA name not recognized

Customer doesn't recognize your business name on their statement

3

Missing or unclear policies

Refund, warranty, or cancellation policies absent or ambiguous

All three can be effectively addressed with clear product/service information and well-written policies. The details matter — Visa/MC will find in favor of the cardholder whenever anything is ambiguous.

Customer Expectations

As a Visa/MC merchant, you have agreed to abide by Visa/MC regulations. Visa/MC will allow any cardholder to chargeback a purchase if they can demonstrate to any degree that they did not receive the products or services promised in the quantity, quality, and time frame promised.

Real example:

If your site promises delivery on Tuesday but the item arrives Wednesday, the cardholder can probably charge that sale back — and there's little you can do about it.

It is not always fair, but if anything is left unclear, it almost always falls in favor of the cardholder. We strongly encourage you to spell everything out clearly and take nothing for granted, even the obvious.

Refund, Exchange, Warranty & Cancellation Policies

These policies must be clearly and specifically spelled out to avoid disputes. If there are any holes or "gray areas," Visa/MC will find in favor of the cardholder in most disputes.

If policies are entirely absent, it is assumed there is no policy — meaning the cardholder can return products for a full refund, forever. On the other hand, a clearly stated "no refunds" policy is perfectly acceptable and actually provides the greatest protection to you as a merchant.

Refund / Exchange Policy (example template)

We offer a 30-day Money Back Guarantee on almost every product we offer. Please call customer service at [YOUR PHONE], in advance to obtain an RMA number (Return Merchandise Authorization) within 30 days of purchase date.

Return merchandise with RMA number to: [YOUR ADDRESS]

NOTE: Refunds sent with no RMA number, or mailed to the call center, will be returned to sender.

Order Cancellation Policy (example template)

Please submit any cancellation via email to [EMAIL] or call [PHONE]. Cancellation requests must include: first name, last name, order number, and email address — identical to the information submitted on your original order.

Every effort will be made to accommodate your cancellation provided your order has not yet been charged and/or shipped. If your order was shipped after we received your cancellation, we will refund the complete balance including shipping. If the cancellation was received after shipment, we will refund the merchandise total less shipping.

Warranty Policy (example template)

90-Day Warranty: All products carry an implied, industry-standard 90-day warranty against defects due to manufacturing or failure. Does not include misuse or use outside the product's intended design.

One-Year Warranty: All parts (except refurbished items) carry a warranty against manufacturer defect or failure for one year from date of purchase. Covers replacement or repair as determined by availability.

Shipping Costs: Customer assumes all costs in shipping to us; we assume shipping costs back to the customer. Replacements ship UPS Ground unless a rush is requested at customer's expense.

Out of Stock Policy (example template)

Our stock fluctuates throughout the day. If an item is identified as "Out of Stock," we can special order it and ship as soon as received — most items ship within 2 weeks. We will notify you by email first (allowing 3 days to reply) before calling. Items listed for sale that have not yet been released may be pre-ordered on a first-come, first-served basis with payment upfront.

These templates are examples only. We encourage you to develop policies that best fit your specific business model and consult with a legal professional as needed.

8 eCommerce Fraud Prevention Tips

1

Include policies with every shipment

Print your policies and include them in every physical shipment. This eliminates the "I didn't know" defense in any dispute.

2

Enable AVS on all transactions

Implement AVS (address verification) for all virtual terminal and website purchases. Verify the billing address — not the shipping address — and ship to the billing address whenever possible.

3

Make your support contact impossible to miss

Display your customer service phone number and support email prominently on every page. A customer who can reach you won't file a chargeback.

4

Flag large first-time orders with rush shipping

A first-time customer ordering large quantities with overnight delivery is a classic fraud pattern. Verify these manually before shipping.

5

Ask for the card type, not just the number

When taking cardholder info by phone, ask "Is that Visa or Mastercard?" rather than just collecting the number. Fraudsters who stole a card number often don't know the card type.

6

Always submit valid expiration dates

Never process transactions without a valid, actual expiration date. Skipping this step increases your fraud liability significantly.

7

Watch for rapid repeat orders

Fraudsters often run a small "test" transaction first. If it clears, they immediately charge a much larger amount. Multiple orders in a short period from the same card or IP should be reviewed.

8

Scrutinize orders from free email addresses

Orders from Yahoo, Hotmail, or other free accounts should receive extra scrutiny. These services offer no billing relationship and are commonly used by fraudsters to hide their identity.

Key Takeaways

  • Visa/MC rules favor the cardholder — ambiguity in your policies almost always costs you.
  • The three chargeback causes (expectations, DBA name, policies) are all preventable with clear communication.
  • Enable AVS on every transaction and verify billing address — not just shipping address.
  • First-time orders with large quantities and overnight shipping deserve manual review.
  • Your DBA name must appear on checkout pages and in confirmation emails so customers recognize the charge.