Chargeback Protection

Chargeback Protection Services | How Ecommerce Merchants Reduce Chargebacks

Are you looking to protect your ecommerce business from chargebacks?  You’ve landed in the right place.  Discover proven effective methods of reducing chargebacks while protecting your business against fraud.

Here are 4 main ways high risk merchants keep chargebacks under control.  We’ll go into greater detail on each method in the following sections.

  • Add no chargeback payment methods on your checkout page. Secure online payments with bank transfers are like cash payments and cannot be charged back.
  • Enable 3D Secure in your payment gateway. 3D secure adds an extra layer of security at checkout and can reduce overall chargebacks up to 70%.
  • Early warning chargeback prevention services. When a consumer calls a card issuing bank to dispute a charge, the merchant is notified.  At that point, the ecommerce merchant can issue a refund to the consumer and avoid the dispute becoming a chargeback.
  • Chargeback fighting services. Once a chargeback has occured, these services help you fight the chargebacks you have the best chance of winning.

 

No Chargeback Payment Method

One way of reducing overall chargebacks is to offer a no chargeback payment method at checkout.  Secure online payments with bank transfers are like cash transactions and cannot be charged back.

Payments with bank transfers eliminate real fraud from cybercriminals, as well as “friendly fraud”.  A common example of friendly fraud occurs when savvy internet shoppers claim a transaction was not authorized and initiate chargebacks against ecommerce merchants.  

Since secure online payments with bank transfers are authorized by the buyer’s own bank, fraud is no longer a worry.  And chargebacks for “unauthorized transactions” do not happen.

As a bonus, secure online payments with bank transfers gets you more customers. 

More than 50% of internet shoppers have concerns about disclosing sensitive payment data when buying from an ecommerce website.  When you offer secure online payments with bank transfers, buyers can purchase from you without the need to disclose payment information on your site.

Ecommerce merchants are happily surprised by the number of shoppers who prefer to pay with bank transfers.  Adding a trusted no chargeback payment method on your checkout page helps you reduce overall chargeback ratios, increase profits, and increases customer satisfaction. 


 

Enable 3DSecure2 on Your Payment Gateway

The new version of 3DSecure is called 3D Secure2.  It is also known as EMV 3-D Secure, 3D Secure 2.0 or 3DS2.  

3DSecure2 is offered by the card brands to add an extra level of security for online debit & credit card transactions by verifying buyers’ identity.  Merchants using 3DSecure2 can reduce chargebacks up to 70%.

Transactions made through 3Dsecure2 cannot be charged back for “no authorization by the consumer” although chargebacks can still occur for other reasons.

Many high-risk merchants did not like the old version of 3DSecure because it added extra steps to the checkout process.  The new version offers buyers a better user experience without added steps at checkout.  As a result, 3DSecure2 gets rid of many of the concerns ecommerce merchants had with the original version. 

3DSecure2 allows ecommerce merchants to send more data to card holders’ banks, which allows for rapid risk scoring of up to 150 buyer and transaction specific risk data points associated with a transaction.  Some examples of data points include shipping addresses, customers’ device ID and previous transaction history.

When the information passed to the card issuing bank to ensure the real cardholder is the buyer, the payment is completed without any additional steps required from the buyer.   By using transaction risk analysis to authenticate transactions, 3DSecure2 increase the transactions that are authenticated without further input from buyers. 

If the card issuing bank requires additional information, the buyer will be asked to enter additional data to authenticate the transaction. 

Benefits of 3DSecure2 are:

  • Liability shift.  With 3DSecure2, the risk of liability associated with some transactions is shifted from merchants to the cardholders’ issuing banks.
  • Chargeback protection.  When you use 3DSecure2 for Visa transactions, you never receive a chargeback. This helps protect from friendly fraud and cybercriminals. 
  • Interchange benefits. Some merchants using 3DSecure2 may qualify for lower interchange fees, which can save you money on processing.
  • Customer trust.  Many customers will feel more confident knowing there is an extra level of security in place to protect the transaction.

 

Early Warning Chargeback Prevention Services

No matter how good your customer service is, the sad fact is that most customers will call their bank to initiate a chargeback rather than calling you and asking for a refund.  In some high-risk industries, more than 86% of customers call their card issuing bank without ever contacting the ecommerce merchant to request a refund.

And let’s face it.  Consumers are getting more savvy about how easy it is to initiate a chargeback.  They understand that in most cases, the issuing bank will side with its customer. 

Sure, it’s not “fair” to you as the merchant.  Yet, the customers and card issuing banks are less concerned about you than with the cardholder, who is a customer of their bank.  That’s simply the way it is.

High volume, high risk merchants now routinely take advantage of early warning systems to keep chargebacks under control.  The services effectively reduce chargebacks up to 50%.  Thus, ecommerce merchant accounts can reduce chargebacks to the ratios required by the card brands to card processing merchant accounts.

Here’s how it works.

When a customer calls the issuing bank to dispute a transaction, you are notified.  You can immediately issue a refund for the purchase. 

Once the refund is issued, the dispute is closed and there is no chargeback.  The consumer still wins because the money is refunded.  Although you are out the cost of the goods or service you provided, your merchant account processing is protected from a chargeback. 


 

Chargeback Fighting Services

With so many chargeback codes, managing & fighting chargebacks can become nightmare. Few companies have the expertise or staff to properly handle the chargeback process.

Offloading chargeback management to companies that specialize in chargeback prevention saves you money.  In addition to helping you prevent chargebacks, these services fight chargebacks that can be won.  And advise you how to handle chargebacks that you have little chance of winning.

Without a way to protect yourself from chargebacks, your merchant account is at risk.  Without payment processing, your business cannot not survive.  There is no perfect system to protect you against chargebacks. Using alternative payment methods, 3DSecure2, chargeback prevention & mitigation services, you mitigate risk and protect your payment processing accounts.  


 

Why Choose NationalACH for Your High Risk Merchant Accounts?

For over 20 years, NationalACH has established payment processing accounts for all businesses classified as high risk merchants.  Here are some of the reasons why.

  • Competitive Rates.  Low processing fees combined with top-notch technology.  Contact us today for your non-obligation rate quotation.
  • Rapid Approvals.  Speed time to market and get more orders faster.  Most high risk account are approved in 1-3 days.
  • Chargeback Prevention & Mitigation.  Stop chargebacks before they occur.  If chargebacks happen, fight the ones you can win.  Add 3DSecure2 for more protection.  Add no chargeback payment methods to your check out page. 
  • High Volume Processing.  Specialists in high volume merchant accounts.  Get the processing capacity you require.  Establish a single high-volume merchant account.  Or mitigate processing risk with multiple high-volume merchant accounts.  
  • Domestic & International Merchant Accounts.  Great option for high risk merchants with a global customer base.  Processing payments through acquiring banks in the regions where your global customers live provides a huge boost for international card approval rates. 
  • Accept One-Time & Recurring Payments.  Unlimited recurring billing plans are a standard feature on all accounts.  Customize plans to meet the needs of your business.  Convenient for customers.  Profitable for you.
  • Multiple Payment Options.  Accept credit & debit cards.  Add echecks for sales lifts up to 30% from US buyers.  Add no chargeback bank transfers to your checkout page.  Add local “in-country” payment methods to get more sales from international buyers. 
  • Dedicated Service.  Highly trained customer service representatives understand your business and are committed to your success. 
  • PCI-DSS Level One Security.  Your nutraceutical payment gateway keeps your business safe while protecting sensitive consumer data. 
  • Fraud Protection.  Enable built in fraud fighting weapons in your high risk payment gateway.  Customizable to meet changing market conditions.  Approve good orders quickly while declining fraudulent transactions.  Set aside questionable orders for review. 
  • Superior Customer Service.  Highly trained representatives give you the help you need when you need it.

Let Us Work for You

Your Success is Our Mission

At National ACH, we’ve done our homework on payments. Use our expertise to get the payment processing capacity you need to manage & grow your business. Our “niche” market is high risk & high volume payment processing. Yet, standard risk merchants also benefit from our services. We are always happy to talk with you, with no obligation. Discover top notch service along with the iron-clad secure processing solutions you are looking for. Payments power your business success.

CHOICE OF MERCHANT SERVICES

National ACH is a one-stop-shop for all your merchant service needs.

Debit Credit Card Processing

High Volume US & International merchant accounts

Learn More >

ACH Processing

Auto debits your customers’ bank accounts.  Electronically settles funds  to you

Learn More >

Same Day ACH Credits

Money sent today is received today

Learn More >

Echecks Processing

More flexible than ACH for high risk merchants

Learn More >

Want to see NationalACH in action?

See a Free Demo

Contact us at 702-323-5761