What is one effective strategy to prevent chargebacks?

• A. Name on card and license match
• B. Offer longer rental periods
• C. Reduce fees for late payments
• D. Give discounts for early returns

Answer: (A)

Ensuring that the name on the card matches the name on the driver's license is an effective strategy to prevent chargebacks because it helps establish the legitimacy of the transaction. When a customer makes a purchase or rental using their credit or debit card, verifying that this card belongs to them minimizes the chances of fraud. If the names do not match, it raises a red flag that the card may have been used without authorization, which can lead to disputes and ultimately chargebacks.

By implementing this verification step, businesses can not only reduce the risk of fraudulent transactions but also provide added security to both the customer and the company. This strategy enhances trust and accountability in the transaction process, making it less likely for customers to dispute charges when they feel secure that their information is being handled properly.