Chargeback Protection

Chargeback Mitigation Services

Guarding against chargebacks and fraud is the best way to protect your payment processing accounts.  While there is no way to eliminate chargebacks, there are ways to manage payment processing risk.  Simply fighting a chargeback is not enough to keep chargebacks under control.  Even if you win a chargeback, it remains on your processing history and figures into calculating your chargeback ratios. 

Chargebacks can be legitimate if a merchant doesn’t provide products or services as represented.  Far more often, fraud causes chargebacks. Criminal fraud is a problem, of course. Yet, “friendly fraud” is an even bigger issue, as buyers exploit loopholes in the chargeback process to attempt to avoid paying you for goods & services. 


 

Customers Call the Bank Instead of You

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

And let’s face it.  Consumers are getting more educated about how easy it is to initiate a chargeback.  They understand that in most cases, the issuing bank will side with its consumer.  Sure, it’s not “fair” to you as the merchant.  Yet, the customers and issuing banks are not concerned about you.  That’s simply the way it is.


 

How Early Warning Systems Help You

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, merchant accounts are protected and processing can continue.

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 amount of 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 still out the cost of the goods or service you provided, your merchant account processing is protected. 

With so many chargeback codes, managing & fighting chargebacks can become nightmare.  Offloading chargeback management to companies that specialize can save you money.  In addition, chargeback prevention services will 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.  But, the chargeback mitigation services are a good tool to have in your arsenal to protect your vitally important merchant accounts.

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Contact us at (214) 269-9361