When was the last time you bought something online? Chances are you looked for the confirmation almost immediately. Did the transaction go through? Does it show what you bought? Were you charged correctly? And if there's a problem, who can you contact?
A good receipt answers these questions before a consumer even has a chance to ask them. That simple email can prevent confusion and head off potential chargebacks. This month, we look at why receipts matter and why what's on them is just as important as sending them.
If receipts aren't reaching customers, you may not hear about it right away, but you might see your chargeback and fraud ratios increase. Bounced emails can also be a warning sign, since fraudsters may use fake email addresses when attempting fraudulent transactions.
Why Receipts Matter
Not everyone is like my 97-year-old mother, who keeps all of her receipts and checks them against her bank statements. For most of us, that's not the case.
Still, receipts are an important part of the transaction process. Payment providers can use live test transactions during onboarding to check webhooks, confirm website access and verify that receipts are sent properly. Card networks also require consumers to receive certain notifications related to recurring billing, which can include advance notice of an upcoming rebill depending on the billing terms.
The Federal Trade Commission (FTC) does not specifically require merchants to send a receipt, but consumers need to verify what they purchased, and merchants need to show they met their legal obligations. A receipt helps do both. It can also serve as proof for returns or disputes and help merchants meet card network and consumer protection requirements around order confirmations.
A detailed receipt also builds trust by allowing consumers to quickly confirm that the charge matches what they bought. When a receipt is too generic or a customer doesn't recognize a charge, they may be more likely to dispute it with their bank. A clear, itemized receipt showing what was purchased and how to contact customer service can help prevent those disputes.
What Should Be on the Receipt?
Three things are especially important: transaction details, billing terms and customer service information.
Transaction Details: The receipt should clearly show what was purchased, including the company name or URL, the transaction date and time, and the payment method with the last four digits of the account. It should also include a unique transaction or purchase ID that helps the merchant identify the transaction. For subscriptions, wallet loads or membership sites, the receipt should also include any necessary username or access information.
Billing Terms: The receipt should include the purchase type and any applicable billing terms. For subscriptions, those terms must be clearly spelled out. For instance, if it's a three-day trial that will rebill for $29.95, the consumer needs to understand when that next charge will occur.
Customer Service Information: Make it easy for consumers to get help. Include access to your self-service customer service website, along with support phone and email contact information.
Receipts can also support your marketing. How many times have you left Walgreens or CVS with a receipt a mile long, full of coupons and special offers? You already have the customer's attention, making the receipt a good place for a small promotion or special offer. Make sure the purchase information comes first, and put any promotions after it.
Don't Forget Recurring Billing
If you're offering a trial period or a negative option, consider additional card network requirements. For example, Visa requires merchants to notify consumers at least seven days before a trial, introductory offer or promotional period ends and recurring billing begins. That notification must include the amount and date of the upcoming recurring transaction, along with a simple way for the customer to cancel.
The key is transparency. Consumers should know when a trial becomes a paid subscription, what happens next and how to cancel. Your payment provider should help you understand the requirements that apply to your business.
Cross Sales Need Receipts Too
If you're offering cross sales or member-area upsells, each unique purchase after the initial signup should have its own detailed receipt. Transparency is especially important with cross sales to help maintain healthy chargeback and fraud ratios. The receipt should clearly identify what was purchased and explain how to cancel or contact customer support.
Make Sure the Receipt Actually Gets There
A receipt that lands in the spam folder is a receipt that basically never existed. If a consumer never sees it, you're in much the same position as a merchant who never sent one. Make sure receipts come from a recognizable address and use a name that matches the website where the consumer made the purchase. The billing descriptor should also match what appears on the consumer's statement. Keep the subject line clear, such as "Your receipt from [Merchant]," rather than something generic that looks like a promotion. Transactional receipts should also come from a different address or subdomain than marketing emails so consumers who unsubscribe from promotions don't accidentally turn off their receipts.
Timing matters, too. Receipts should go out as soon as the transaction is approved, not in a nightly batch. Consumers typically want confirmation within the first few minutes after they hit submit. If they can't find it, they may call their bank instead of customer service.
Finally, watch your bounce rates and failed sends. If receipts aren't reaching customers, you may not hear about it right away, but you might see your chargeback and fraud ratios increase. Bounced emails can also be a warning sign, since fraudsters may use fake email addresses when attempting fraudulent transactions.
The Receipt Isn't Just a Receipt
The receipt is the last thing a consumer sees in the buying process and often the only part of the transaction they keep. It's also one of the simplest chargeback prevention tools you have. A clear, itemized receipt that actually gets delivered costs almost nothing beyond the effort of setting it up correctly and can help head off an "I don't recognize this charge" dispute before it ever reaches the bank.
While the receipt signals the end of a transaction, it doesn't have to mean the end of the relationship. Think of it as one more opportunity to leave a good impression and give customers a reason to keep coming back.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions, including payment facilitation, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. For questions or help, contact sales@segpay.com or compliance@segpay.com.
