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Chargeback Mitigation

Chargeback Mitigation

Unauthorized charges

Fraud detection software is an essential component of a high risk merchant’s arsenal against chargebacks. However, there are many times when this alone is not enough. As the English author, Douglas Adams once wrote, “A common mistake that people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools.”

In other words, fraud software is good – but it merely weeds out the less talented fraudsters.

Our chargeback mitigation software was designed with this in mind. Designed to be your first line of defense in chargeback prevention and to be used alongside your fraud detection software, this unique service uses its relationships with the card issuers to alert you to user-confirmed fraud and customer disputes so you can take care of an impending chargeback before it’s been issued!

Chargebacks Are Lost Opportunities

Each chargeback is an opportunity to improve a process, identify a weakness, or reach out in a positive way to a customer. By ignoring your chargebacks, you sidestep opportunities for growth that could push you to the next level. Never view analyzing chargebacks as a waste of time, but rather as an opportunity for improvement.

For all of these reasons and more, chargebacks are worth fighting, even if your overall ratio is under the 1% limit. Don’t wait until you reach the danger zone to start paying attention to your chargebacks – be proactive and see the positive results it will have on your business.

How Well Defined Is Your Chargeback Prevention Plan?

A great return policy works well for legitimate customers. But what about scammers? The best way to avoid chargebacks on fraudulent orders is to stop fraud before it happens. But this is more easily said than done and rarely happens on accident. To answer this question, try to walk someone (a customer service liaison, for instance) through the steps you would take to review your orders for signs of fraud.

If your process is clear-cut, you or your staff will have an easier time making sure the plan is followed through. If your plan is vague or non-existent, consider putting a well-defined plan into place.

How Chargebacks Generally Work:

In a traditional setting (without our chargeback mitigation service), the chargeback process would look something like this:

  • Now: The bank flags the card because of a customer inquiry or fraud alert.

  • 40 min: The cardholder is contacted

  • 45 min: The cardholder confirms the fraud or they want to dispute the charge. The cardholder hasn’t even contacted you!

  • 1 day to 6 weeks: You are notified of the chargeback. You lose the cost of the sale, plus an additional chargeback fee and possibly other fees associated with excessive chargebacks.

Chargeback Mitigation | High-Risk Merchants | E-Commerce 4 IM

How Chargebacks Work With Us:

With our service, you’ll receive near real-time merchant account monitoring that alerts you when the customer confirms the fraud and the time you’re alerted. This extra time allows you to take action and process a return before the card issuer can process the chargeback. It looks something like this:

  • Now: The bank flags the card because of a customer inquire or fraud alert.

  • 40 min: The cardholder is contacted

  • 45 min: The cardholder confirms the fraud or they want to dispute the charge. The cardholder hasn’t even contacted you!

  • 1 hour: You are notified about the fraudulent transaction

Remember – chargebacks should only be issued if a return has not been processed first. With our service, you’re told about client-confirmed fraud and consumer disputes, with no guesswork. This is effective chargeback management and allows you to reduce your chargeback ratio successfully. All you need to do is take action on the information you receive before the chargeback is issued.

Credit card refund

What You Need

We offer several options to fit our client’s needs to reduce chargebacks. For those of you who are looking for a complete alerts network software solution, we offer a web portal where you can see your alerts on the dashboard and run reports.

For customers who already have a fraud review system and want to work within their software, we also offer a batch file of your alerts.

Both options allow for automated alert review (via an API) to increase your business efficiency. However, you can also manually refund the transaction from within the portal.

Overall we can help you:

  • Avoid the entire chargeback process; we stop chargebacks before they happen.
  • Avoid financial losses due to the fulfillment of goods after a chargeback has been created.
  • Protect your company from excessive chargebacks by customer experience and fraud.

Chargeback mitigation is critical for high risk e-commerce site owners

If you’re a seasoned high risk site owner, you probably know that chargebacks are simply part of your business. For almost all e-commerce sites selling high risk products, chargebacks are one of the reasons that their business is in the high risk category in the first place. Banks and processors evaluate a business’ risk levels before issuing credit, offering merchant services, etc.

There are many reasons why your business might be considered high risk. It could be due to high regulatory and legislative restrictions on your industry, for example, affiliate marketing. Or, it could be that your products historically have a high chargeback ratio (such as membership clubs). This means that you need credit card processing from a provider that specializes in high risk markets.

If you’re a high risk merchant who uses more traditional merchant service providers, you might find that you’re getting a pretty poor deal. This isn’t because the provider isn’t good at their job. It’s simply because their services are not inherently attuned to dealing with the naturally occurring obstacles that come with the high risk industry. One of the main components that throw off more standard credit card processors is how they deal with chargebacks.

You need a credit card processor that provides you with proper chargeback protection. With the right credit card processor, you’ll be in a much better standing to keep your business running. Even in times of high chargeback

How Do I Get Started?

Thousands of merchants worldwide use this software to stop chargebacks before they begin. If you’d like to become one of them, give us a call or fill out the form on the right to find out more or to have someone walk you through the process of integrating the service with your system – 1-800-570-1347.

Chargeback Mitigation | E-Commerce 4 IM

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