Live Chat Software
Electronic contract agreements: Why you need them & Their Critical Role in Chargeback Protection

Speeding the Shifting to Electronic Contract agreements

For many business owners, the idea of electronic contract agreements is still a far-fetched idea they are yet to understand and adopt. Replacing paper with digital documents seems like a stressful transformation, but it isn't if you weigh the benefits versus the challenges. Of course, prospects are not clients until they've signed an agreement, and you have a binding document. There are many reasons a prospect would back off from a deal before it happens, but a slow, unpredictable, and tiresome process is the most common. Electronic contract agreements allow you to seal deals within the shortest time possible. Apart from high conversion rates, it also leaves you with happy customers. Satisfied clients are willing to come back because they know working with you isn't a hassle. But when it comes to pros, an e-contract is like a double-edged sword which cuts both sides. As the business owner, you also enjoy numerous advantages such as document safety, cutting on costs, and, most importantly, protection against deadly chargebacks or reverse charges. With that in mind, let's understand first what an e-contract is and how it is different than your normal paper contract.

What’s an Electronic Contract?

Just like you can use e-signature tech to sign documents, e-contracts allow you to process your agreements from scratch to signing. You can propose deals, discuss, agree on the changes, implement them, revise the final draft, and sign it electronically without moving frompoint A to B. E-contracts reduce the burden in the sales process and eliminate obstacles that make paper contracts tiresome. After all, it's all about meeting making clients happy, and if automation can help you do that, then why not? And not just that, more conversion means more sales and satisfied clients visit again. E-contracts are perfectly legal, but business owners want to double-check local laws and industry regulations to remain as compliant as possible.

Common Setbacks in the Paper Contract Process?

Manual processes. The need to move to and fro, picking mail, going through the contract, returning it for tweaks, lots of missed calls, and waits. All these can be tiresome and time-wasting for both the client and the business. These challenges can also increase the cost of running a business. But the worst is 'undelivered mail.' A slight mistake in the ship-to address can lead to contract abandonment and ruin business-client relations. So why not shift to e-contracts when automation is proving to be a faster way to seal deals. These perfectly legal contracts under electronic contract law are accessible from multiple devices. With electronic contract agreements, nobody has to touch any paper, print anything, or make several visits to a post office.

How e-contracts Can Ensure Electronic Contract Law Compliance

Here are some of the ways an electronic contract can speed up your sales process.

    1.It Increases the likelihood of a successful deal.

We've talked of the things that make prospects abandon us before they sign an agreement. Manual processes are too slow for a savvy customer base, so you must upgrade if you want to speed up things without compromising on transparency. Electronic contract signing ensures you discuss a deal without setting up multiple meetings and waiting for feedback for days. Records are also more accessible in electronic form than paper form; it can be hectic to search for a single document in the cabinets of files. E-contracts, on the other hand, makes these accessible in a few clicks.

    2.It is Mobile-friendly.

Because mobile devices are part of your clients' lives, it only makes sense to connect and discuss business with them through these gadgets. Mobile gadgets travel with your clients everywhere they go so they can monitor any changes.

    3.You can change your approach based on data mined from e-contracts.

Your sales department can use the data from e-contract solutions to make changes that could lead to more conversion in the future. This data can help you do away with the barriers leading to early abandonment and develop a strategy to do away with them without ruining risking your business.

    4.They involve both Parties in the Agreement.

E-contracts are so far the most pro-active ways to engage your client in the contract process. Any discussions and proposals can be done in the shortest time possible because there are notifications for these. Changes reflect each end automatically, so you don't have to update the same document and send it to and fro every time you make a change.

    5.Signatories view the same version of the agreement.

Electronic contract agreements occur in the cloud, so you only have a single version of the agreement and not multiple updated and saved versions. This capability allows you to correct errors and make changes without disturbing your would-be client messing up the document. All signatories view the latest version of the binding document, which ensures you and your clients stay on the same page.

4 Ways an E-Contract Can Help Improve Your Merchant Chargeback Protection

But for businesses, electronic contract agreementsare not just a way to complete deals. They play an extra vital role in protecting a business against chargebacks or reverse charges. A reverse charge or chargeback is what happens when a customer (cardholder) disputes a legit or fraudulent transaction made by their credit card. When these occur in excess, a business loses its foothold and suffers financially. All merchant accounts are prone to chargeback claims by customers, but high-risk businesses suffer the most. Sometimes the claims are valid, while in most cases, clients raise illegitimate complaints. If you don't take preventive measures, your business may run losses trying to refund chargebacks, which happen to be invalid. However, an e-contract can help improve your security in many ways. Without further ado, let's go through the many ways an e-contract can hold the fort for your chargeback-prone brand.

    1.It identifies the Credit Card in use.

An e-contract should determine the payment method in use. Notably, it should state the type of card i.e., MasterCard, AmEx, Visa, Discover, plus its expiration date and the last four digits. Identifying the card without necessarily disclosing a cardholder's sensitive data reduces the chances of losing chargeback claims by unauthorized card credits.

    2.Verifies that buyer received the econtract.

In solving a chargeback dispute, proving that a customer received a copy of the econtract requires more than just your copy of the contract. Econtract provides a solution by listing the client's IP address, email address, and electronic signature (with precise date and time) during the transaction. This data is useful when dealing with a dissatisfied customer who claims to have received no copy of a receipt or econtract.

    3.Give complete details of the Refund Policy.

Many companies prefer to mention their return policy on their business websites and forget to mention it in their contracts. Regrettably, this is never sufficient when fighting chargebacks as customers often complain of inadequate information concerning the business' refund policy. Listing your refund policy data on the econtract will boost your merchant chargeback protection from buyers who often win disputes by circumventing the drawbacks of a company's policy.

    4.Give specific details of the Purchase.

Electronic contract agreements should list with details the exact price of service or product, taxes, recurring charges, and any other associated costs. If possible, visibly outline the facts so that consumers can easily understand what they are purchasing. Also, the credit card issuer should comprehend the purchase's specifics when going through the econtract in the event of a dispute. Giving details proves useful when customers misremember the price of a particular service or good and claim an overcharge. The issuing bank often favors customers when solving chargeback disputes. If you are looking to protect your business from invalid claims by clients, electronic contract agreementsare an excellent to ensure all the specifics of a transaction are listed.

Final Words

For many business owners, digital contracts are still a far-fetched idea they are yet to come to terms with. Replacing paper with digital documents seems like a stressful transformation, but it isn't if you weigh the benefits versus the challenges. Of course, prospects are not clients until they've signed an agreement, and you have a binding document. E-contracts are a smart way to discuss deals and close them. They are way easy to implement. All you must do is understand electronic contract law and have a small budget. And for the icing on the cake, you enter a safe way to do business as pacing to digital contracts can help you deal with reverse charges.

Contributor: admin
<< Back