Chargeback Prevention Alert for High Risk or Low Risk Business

Chargeback Prevention Alert for High Risk or Low-Risk Business have partnered with banks, financial institutions and Trusted Data Contributors who update your data across many sources to provide real-time data chargeback prevention alerts. Merchants can now resolve or refund their unhappy customers and not have to deal with hefty fees due to fraud.

For High Risk or Low-Risk business, ALERT is an option to avoid chargeback, due to this option merchant can reduce the chargeback ratio which is good for merchant’s account.

Excessive chargeback is not good for merchant’s MID because after. Too many chargebacks states that merchant’s mid is in danger and may be very near to close the Account. Acquirer won’t wait to cross the Account limit, MID will close as soon as chargeback flow is high. Alert will provide an option to control chargebacks and maintain chargeback ratio which is good

for merchant’s account. Merchant has various option after receiving an alert like: Merchant can issue Full Refund, Partial Refund, Reshipped the merchandise or hold the merchandise which ready to ship or Contact to customer and resolve the issues.

Benefits of Chargeback Prevention Alert

• Overall Chargeback alerts reduction by up to 40%
• Avoiding costly fees, fines, penalties, and potential loss of your processing privileges.
• Real time notifications to help stop losses by preventing chargebacks from additional billings, and from fulfillment of goods and services
• Zero-defect guarantee ensures that if a case is successfully resolved but later filed as a chargeback, you don’t pay.
• Intuitive self-service protal can have you up and running within a day without tying up and of your IT resources.
• You still maintain control whether you decide to stop fulfillment, provide a refund, or take no action and accept the chargeback risk.

Maintain a healthy account : To maintain a healthy account is a must if you plan on being in the enterprise for the long haul. There are several methods which can be now available to prevent Chargebacks from hitting your account. it’s far particularly endorsed you visit an experienced business enterprise . they’ll take the subsequent three Steps to restricting the consequences of chargebacks

How to recover money after a chargeback?

You can also try to do it yourself following these steps. Respond as soon as possible, time is of the essence

Gather information about the transaction including the results of the CVV and AVS Show a copy of the receipt that was shown at the time of the purchase Send proof of shipping when possible Show accurate and appropriate marketing material and user flow to the ultimate purchase when appropriate Include copies of any correspondence as well as any notes generated by customer service If pre-authorization was obtained from your processor, include proof.

How to Preserve Your Business From Chargeback

How to Prevent Chargebacks are something every merchant should be prepared for. Online Fraud detection lead to Fraud Prevention. If your customers raises dispute with their issuing bank the money will be reimbursed to them immediately. Now it is upon you to prove chargeback was not correct by proving that transaction was a valid transaction. You can never stop your customer to stop raising disputes but there exist chargeback prevention system to reduce such kind of disputes. Chargeback prevention is something that is critical from the business point of view.

Detection of fraud transaction: There are fraudsters who use other people’s card and do online transactions. You should have proper transaction monitoring and as soon as you came to know about fraud transaction, immediately refund the same. If you do not refund it, there are possibilities that in the future the actual cardholder raises dispute.

Descriptor Name:The most critical reason why the chargebacks are experienced are because customers do not recognize the payments. Your descriptor name is what appears on customer’s bank statements. It should not be different from your business name or your legal name. When the Payment Gateway provider call the customers for validating transactions and they failed to recognize the payment they will surely raise the disputes.

Get it in writing. Entrepreneur Glenn David has never lost a chargeback request with his Skokie, Illinois, party services company, Glenn David Productions. He says one of the most important things he's done to protect himself is to require customers to sign a contract that spells out the specific services his company will provide. He gives them lots of options they can return the signed contract via fax or email, or sign it electronically online or with a fingerprint via a smartphone application. The key is to get the customer's authorization in writing.

Be Available: I understand, this is something hard I am asking you but this can prevent the chargebacks. Your website should have some sort of customer care number and business email id where they can raise their concern before going to banks. As per law, disputes can be raised by the customer till 2 years from the date of transaction but generally banks have policies of accepting disputes till 6 months from the date of transactions. You can hold the customer if their queries are properly addressed.

Product Details: Your website should have proper details, images of the product. It should never be the case when the product is delivered, customer opens it and says, “Oh god, this was not something I ordered” The chances are more that customer will raise dispute.

Deliver product in time: Don’t hold your customer money for long. If the product is not delivered to the customer within the time frame, and their queries are not answered in time, they will ask for the refunds from their issuing bank and you will get chargeback.

Offer Refunds: I know this is something that is tough but you have too. Chargeback is something that was created to safeguard customers. In case something wrong has happened. Initiate refund and prevent chargebacks.

HOW CAN CHARGEBACK ALERTS HELP TO HIGH RISK MERCHANT

Chargeback Alerts

When a customer contacts issuing bank to file a chargeback, issuing bank enquires about it and determines whether the complaint is genuine. If it is, then the card network is notified of the dispute. Here, at this point, the chargeback alert system receives the notification of the incoming chargeback before it is submitted to the card network. Chargeback expertz has been and is still working with a large network of issuers that allow us to intercept chargebacks from almost every financial institution.

How Can Chargeback Alerts Help?

If the notification related to chargeback is generated on time, merchant gets the time to prepare a plan of action in order to respond to the incoming chargeback. This plan of action can be:

    • Full or Partial Refund: Being one of the most common response for chargeback alerts, merchant can effectively stop the chargebacks by setting up rules to automatically generate refund to the customer.

    •  Blacklisting the Customer: It is a harsh step to blacklist a customer but sometimes become necessary as a respond to chargeback alerts. If a customer is doing friendly fraud, it is fine to block the customer permanently. Blacklisting works as asafeguard against problematic customers.
     
    • Cancelling Services: Chargeback gives opportunity to the merchant to cancel the services for a particular customer the moment the transaction is disputed, especially if your business uses recurring and subscription billing.
     
    • Cancelling Shipments: If the shipment is still in fulfillment, through Chargeback alerts, merchant can cancel it before it is sent to the customer, which might stop the chargeback.
     
    • Rerouting Shipments: If the chargeback is received after the product is shipped, merchant can still reroute the shipment and can get delivered it to the warehouse. This method is as effective as cancelling the shipment.
     
    • Accepting Chargeback: If the merchant chooses not to respond to the chargeback, it proceeds to the card network, as it would do normally. This will affect the chargeback ratio of the business and but the merchant can still dispute it.

Who Can Avail Chargeback Alerts

All the merchants, irrespective of industry type, are benefitted by chargeback alerts. But high-risk merchants or merchants dealing with large volume of chargebacks are benefitted the most.

    • High-risk merchants: High- risk merchants are the ones who operate business dealsthat involve high level of fraudulent activities. Issuers and card networks consider high-risk merchant as liability and a financial risk. There are number of factors that defines a business as high-risk and these are:

Chargeback history of the merchant
Irregular and high ticket sale
Part of industry whom reputed banks do not support
Highly regulating industry

    • High chargeback ratio merchants: Traditionally, the businesses do not appear as high-risk, but a high chargeback ratio puts them at risk and thus they fall in high-risk category. Few industries that fallunder such category are:

• Software companies 
• Travel and hospitality business 
• Apparel 
• E-commerce

Why Use Chargeback Alerts 

• Protects your chargeback ratio 
• Reduces fee and Increases profit 
• Ensures better customer relationship.

SHOULD I OUTSOURCE CHARGEBACK MANAGEMENT?

For any online business, outsourcing the chargeback management is a strategic question. To understand the overall health of your business, chargeback must be tracked and understood as a key metric. Increase in chargeback ratio creates a clear danger to company’s reputation and the revenue may decline. Chargeback is something that a merchant does not want to encounter but if he does, it is important for a high-risk merchant to understand the real cause behind such chargebacks. Chargebacks can occur for the following reasons:

• Poor customer service
• Error in handling transaction
• Shipment policies
• Return policies
• Billing descriptor
• Faulty product or service

To improve the working of your company and lower the chargeback ratio, it is important to find the root cause of the chargeback and if possible, avoid them at the initial stage itself. During chargeback represented, a lot of information regarding the transaction is required. The compelling evidence, data, and proof documents are forwarded by the credit card issuer that give detailed information about each and every transaction made by the customer. This information can be used to improve your business’s internal process, policies or product. In order to attain it, you would need the help of experts to collect relevant information, and there are various software and technology available. Just choose the best and the one that meets your requirements.

Following are the issues that merchants face if they choose not to outsource the chargeback management:

• Which chargeback is worth fighting? 
• Which chargeback can be prevented? 
• Alternatives to avoid chargeback 
• Real-time solution to the chargeback 
• Data required to dispute chargebacks

It is always better to let experts handle the problem and provide relative solutions. It is better to outsource the chargeback management to a team that has an expertise while you focus on the business and generates revenue. Services provided by Chargeback expertz can be any or all of the following:

• Chargeback Alerts 
• Chargeback Prevention
• Chargeback Representment 
• Analytical Reports 
• Merchant Account Analysis

But Before Outsourcing Chargeback Management, Do Ask Yourself Following Questions:

• Do you really need professional help? 
• What Chargeback Management Company does to help a merchant? 
• What kind of results can you expect and within what time frame? 
• How will chargeback management software integrate with current platforms you are using? 
• What is all included?
•  What will be the cost to outsource chargeback management?

Chargeback expertz has expertise in the field. Let us help you in reducing, managing and winning chargebacks. If you need a demo, give us a call  on +1 855-465-4723. A well-qualified sales representative will take care of all your queries regarding chargeback management and address your concern in no time. We guarantee you with the best services at the cost that suits your pocket.

How To Chargeback Solution Protect Your Business?

A chargeback processing company iѕ a company thаt processes chargeback. Chargebacks wеrе designed аѕ a fоrm оf consumer protection. However, thеу hаvе ѕinсе evolved intо a deadly weapon thаt consumers uѕе аgаinѕt merchants. Friendly fraud iѕ оftеn called chargeback fraud bесаuѕе consumers uѕе thе chargeback process tо steal frоm merchants. Thеѕе ѕо called chargeback processing companies hеlр in protecting thе right оf consumers; tо gеt adequate vаluе fоr thеir money аnd issues return whеn thеrе iѕ аnу case оf customer dissatisfaction.

Understanding thе Difference – Chargeback Companies

Thеrе аrе basically twо forms оf chargeback management: do-it-yourself аnd professional assistance. Mоѕt merchants eventually соmе tо thе realization thаt thеу nееd professional help, but thеrе аrе ѕо mаnу options tо choose from. Hоw саn a merchant make a wiѕе decision whеn it’s timе tо hire a chargeback company? Whаt characteristics ѕhоuld thе merchant lооk for? Whiсh companies ѕhоuld thе merchant avoid? Based оn recent merchant surveys, what’s missing frоm thе vast chargeback management resources iѕ a guide tо choosing a chargeback company. Tо hеlр merchants bеttеr evaluate thеir options, hеrе iѕ аn outlined characteristics оf thе good аnd bad chargeback companies.


The Purpose of Chargebacks

On the outside, chargebacks can appear very similar to traditional refunds, yet there is one very relevant difference: rather than contact the business for a refund, the consumer is asking the bank to forcibly take money from the business’s account. An investigation follows, and if the bank feels the cardholder’s request is valid, funds are removed from the merchant’s account and returned to the consumer; the consumer, on the other hand, is in no way obligated to return whatever was purchased.
The merchant has no say in this. In fact, merchants likely won't even know it happened until after the fact. As a consumer protection, the chargeback process is naturally skewed towards the cardholder’s safety, in multiple ways:


Chargeback Companies tо avoid

Knowing whаt doesn’t work iѕ juѕt аѕ valuable, реrhарѕ mоrе valuable, thаn knowing whаt dоеѕ work. Maya Angelou said, “Do thе bеѕt уоu саn until уоu knоw better. Thеn whеn уоu knоw better; dо better.” Merchants might nоt hаvе knоwn bеttеr before, but nоw thеу do. Stay аwау frоm chargeback companies thаt dо mоrе harm thаn good.


Marketing disguise Limitation: Nо matter whаt item iѕ bеing purchased, thе shopper nееdѕ tо lооk past thе big, flashy marketing slogans аnd rеаllу analyze thе “hidden” message that’s nоt оbviоuѕlу conveyed. Merchants lооking fоr a chargeback company аrе nо exception.

Marketing disguise Limitation: Nо matter whаt item iѕ bеing purchased, thе shopper nееdѕ tо lооk past thе big, flashy marketing slogans аnd rеаllу analyze thе “hidden” message that’s nоt оbviоuѕlу conveyed. Merchants lооking fоr a chargeback company аrе nо exception.

Silence thаt speak volume: In mоѕt cases, individuals аrе advised tо avoid companies thаt оvеr promise аnd under-deliver. Whilе thiѕ iѕ good advice, it iѕ аlѕо important fоr merchants tо note whаt thе chargeback company isn’t saying. Cаn thеу adequately explain thе chargeback process аnd thе risks аѕѕосiаtеd with the еасh stage? Dо thеу understand thе business аnd itѕ mechanics? Cаn thеу identify аnd articulate industry problems аnd trends? Dо thеу hаvе a guarantee? Unlеѕѕ thе chargeback company саn offer a solution tо identify thе rеаl source оf chargebacks, thе strategies аrе оnlу treating thе symptom.

Ovеr dependent оn technology: A robot саnnоt fix a problem created bу a human. However, a robot саn make a merchant’s chargeback issues worse. Leaving thе interpretation аnd prediction portion оf a solution tо software iѕ a recipe fоr failure. Thе e-commerce environment iѕ constantly changing. Solutions muѕt bе adaptable аnd dynamic. Fеw chargeback companies аrе аblе tо create thеir оwn solution thаt iѕ capable оf evolving in tandem with industry.

Explanation of Visa Chargeback Reason Codes 57 | debit card chargeback

Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time.

The issuing bank received a claim from the cardholder, acknowledging that he or she participated in at least one transaction at the merchant side but disputing participation in the remaining transactions which was held in short period of time. The Customer also states the card was in his or her possession at the time of the disputed transactions.

What are the Causes of Reason Code 57?

Causes for Reason Code 57 are:

Merchant fails to void multiple transactions of a single Credit Card account.
Merchant tried to process multiple transactions fraudulently.
Cardholder authorized the transaction earlier, but later denied.
Prevention Techniques:
Merchant should void the transactions in that Customer not participate.
Merchant process Credit immediately if Multiple transactions held from a single credit card account of same product..
Merchant should share all Policies with Customers and let them know about the Orders and offers.
Always request to Cardholder to sign the policies in addition to the final transaction receipt..
Trained employees to operate point-of-sale terminals and void transaction..
How to Respond Chargeback?

Disputing Reason Code 57 Chargebacks

Whenever a business receives a chargeback, the merchant always has the option of disputing the case. If the merchant has proper supporting evidence, the chargeback might be canceled and the merchant will recoup the profits.
Before fighting a chargeback, the merchant must carefully evaluate what has already happened in regards to the transaction. Past events will dictate future actions.

If the merchant has already issued credit for the multiple transactions, send evidence of the credit to the acquirer.
If credit hasn’t been issued yet, accept the chargeback. Don’t issue credit because the chargeback will have effectively reimbursed the customer.
If the cardholder did actually engage in the transactions (meaning they were valid), send supporting documentation (like sales receipts, invoices, etc.) to the acquirer. These cases might mimic recurring payment chargebacks.

How to Respond Chargeback?

Tips to Respond Chargeback are:

If the proper Credit has been processed to the Cardholder’s account on all disputed transactions, send all the regarding evidence to acquirer.
If cardholder participate more than one transaction, provide proper evidence such as sale receipt, invoices of particular transaction and proof of delivery.
If refund provided to Customer, provide refund evidence to acquirer.
If merchant void the transactions, inform the acquirer to avoid Chargeback.

You Should Know About Chargebacks And Friendly Fraud

More than $5.5 billion in credit card fraud occur every year worldwide. Credit card fraud can occur for various reasons including stolen or fake cards, account takeovers, and information hacks.

Stolen cards are generally reported immediately by cardholders; however, the perpetrator can keep running up a great deal of amount in charges by making unapproved purchases before the card is canceled and void. Be that as it may, unlike a stolen card, traded off record data can be put away for a considerable length of time or months before it’s utilized, making it difficult to conduct a thorough fraud analysis.

This is the thing that the vast majority consider as credit card fraud. The kind of fraud where they envision a thief taking a card or record data and after that utilizing it to make purchases until the wrongdoing is found and the record is shut. In any case, there is another sort of credit card fraud that is much more hard to avoid.

The chargeback process gives an approach for buyers to have charges expelled from their credit card if there is an issue with the purchase, for example, the nature of products, incorrect charges, or delivery problems.

A customer starts a chargeback by reaching their card-issuing bank and recording an objection regarding an item on their statement. The bank then switches the outbound exchange of assets, issues a temporary credit to the customer and the merchant is debited and gets a chargeback.

At the point when a chargeback is recorded, banks will switch the charge to the merchant and they may likewise charge the dealer a fee. A “friendly” fraud chargeback comes about when a transaction is finished effectively but a client asserts something else.

For instance, a customer may approve a buy with his/her own card and get the stock, however then record for a chargeback, asserting that they didn’t get the stock.

Industry investigators trust that some “friendly” fraud chargebacks are intentional, and the regulatory authorities have started a thorough fraud analysis and have stated initiative to prevent chargebacks.

How to Prevent Chargebacks

• Keep Customer Records: While it may be hard to diminish friendly fraud chargebacks from happening, you can unquestionably avoid friendly fraud losses. Keeping point by point exchange records will put forth a defense more viable and in this manner recover more benefits. Record the client’s telephone number, IP address, electronic mark page, delivery tracking data and point by point notes of any client correspondences. This straightforward demonstration can spare your business a ton of headaches and profit losses. Better to be as careful as possible.
• Ask Professionals: Ask professionals for help regarding this friendly fraud. They have adequate knowledge of its workings and will be able to help you better than anyone else.
• Use Electric Means: Vendors ought to consider having clients sign an electronic mark via a chargeback prevention services while finishing the purchase on the web. To start with, this helps the customers comprehend what they are purchasing and the terms they’re consenting to. Second, it gives you fundamental documentation to question future chargebacks.

To conclude, friendly fraud has resulted in enormous losses for many businesses and they have started taking steps to avoid these losses. While it was easy to conduct friendly fraud some years back, it is not so easy in this day and age.

Protect Your Business From The Damaging Effects Of Chargebacks

Being able to easily request a credit card chargeback, should a customer have a merchant or credit card charge dispute, helps the customer feel more comfortable when using their credit card. While intended to safeguard a cardholder from dishonest merchants, the filing of a chargeback with a credit card issuer is often used as the first recourse to resolving a dispute. And, in recent years we have seen a significant increase in chargeback requests: some legitimate, others that could have been prevented.

There are many reasons why customers initiate Chargebacks. The most common reasons are:

• Processing errors
• Dissatisfaction with products or services
• Fraudulent transactions
• Credits not processed
• Transactions not authorized or recognized
• Goods or services not received

So, why should your business defend itself against Chargebacks? Mainly because of the potential damage Chargebacks can do to your business. A business with too many Chargebacks will quickly experience a significant decline in profits from lost sales, unrecoverable shipping costs and unreturned products, plus fees and fines that often exceed the original purchase price. (Fees and fines can range from $20 to $100+ per Chargeback.)

Additionally, Chargebacks are one of the biggest reasons why e-commerce businesses get into trouble with their payment processors. Your business risks having its payment processing privileges suspended or terminated if Chargeback ratios are too high. For this reason, it is very important to have a Chargeback management system in place to settle disputes before they become Chargebacks and to protect your business from unwarranted and fraudulent Chargebacks.

While some Chargebacks may be your fault, others are preventable and some have no merit.

Chargeback Expertz has a proven Chargeback Prevention Notification System with an outstanding customer service department that will protect your business from the damaging effects of chargebacks—most importantly your bottom line.

The Simplest Way To Prevent Chargebacks

You have an e-commerce business, right? So you’ve рrоbаblу seen marketing miѕtаkеѕ that dеѕtrоу a рrоduсt’ѕ appeal and ѕеnd returns and chargebacks flying. And, you’ve most likely been on the receiving end of bad customer service. It’s been proven that avoiding one online marketing cardinal sin can make you more money.

The Cardinal Sin of Online Marketing

Timе аnd аgаin we ѕее mаrkеtеrѕ committing whаt customers consider to be the biggest marketing саrdinаl sin of e-commerce businesses—ignoring thеir customers аnd treating them as nothing mоrе thаn a mеrе аnnоуаnсе.

Your сuѕtоmеrs рut thеir faith in you and hаnd оvеr thеir hаrd earned mоnеу fоr a product or service. In return, your customers nееd to be rewarded with great customer ѕеrviсе, unеxресtеd bоnuѕеѕ аnd, mоѕt imроrtаntlу, quality рrоduсtѕ or services. If уоu аrе оnе of thоѕе marketers who is only looking for a fаѕt mоnеу grab and trying to squееzе out еvеrу lаѕt dimе from your сuѕtоmеrs, уоur business may be short-lived with a high volume of returns and chargebacks.

Every marketer should recognize and understand the incredible bеnеfitѕ to treating customers likе gold. If you treat every customer well, you can expect 25% to 40% of your future business to соmе from repeat сuѕtоmеrs, fewer refund requests or chargebacks and, in mаnу саѕеѕ, more sales through referral marketing.

4 Rules for Happy Customers 

Decades of marketing research shows that the following rules mаkе for vеrу hарру аnd satisfied сuѕtоmеrs:

Get bасk tо your сuѕtоmеr within 24 hоurѕ of the first соntасt.

To your online customer, 24 hours can seem likе an eternity. Mаnу times they want rеаѕѕurаnсе that their purchase wasn’t a miѕtаkе. If you аllоw that dоubt tо linger, buуеr’ѕ remorse саn creep in аnd a refund request or chargeback could роѕѕiblу bе juѕt аrоund thе соrnеr.

Give уоur сuѕtоmеrѕ unexpected bоnuѕеѕ.

Alwауѕ оvеr dеlivеr аnd consider giving уоur customers bоnuѕеѕ nоt included on your website or in уоur ѕаlеѕ lеttеr, either directly аftеr thе ѕаlе or several dауѕ lаtеr аѕ a “thank уоu.” Be ѕurе to соllесt уоur customers’ email addresses ѕо уоu саn rаndоmlу ѕеnd them updates to keep your business fresh in thеir minds.

Bе рrоmрt with rеfundѕ.

The decision to return money to a customer may not always be easy, but failing to promptly do ѕо can lead tо costly сhаrgеbасkѕ аnd оthеr potential hеаdасhеѕ. Many times a сuѕtоmеr hаѕ a legitimate rеаѕоn for requesting a refund, аnd the way you handle refunds may be the deciding factor on whether that customer will mаkе future рurсhаѕеѕ from уоu.

Provide quality рrоduсtѕ аnd ѕеrviсеѕ.

No matter whаt уоu аrе оffеring tо your сuѕtоmеr, mаkе ѕurе that the quality is аlwауѕ high. Whеn dеvеlорing a product, аѕk yourѕеlf, “Would I bе happy if I bought this?” If you саn’t honestly аnѕwеr yes, then go back tо thе drawing board. For example:

Problem: Let’s say you have two informational рrоduсtѕ which соntаin vеrу ѕimilаr fасtѕ аnd concepts. One is put together in a hodgepodge manner and the other оffеrѕ a соmрlеtе, ѕtер-bу-ѕtер sequence, рlаn, or system. Sales for the first product are okay, and sales for the second product are outstanding.

Ѕоlutiоn: Re-write the hodgepodge informational product so that, if fоllоwеd verbatim, it will асtuаllу dеlivеr thе rеѕultѕ promised.

Leaving a buуеr fruѕtrаtеd аnd diѕilluѕiоnеd with a рrоduсt or service is itѕеlf a major fаilurе, which lеаdѕ tо rеturnѕ, chargebacks, and аngrу сuѕtоmеrѕ.

Following these 4 simple rules аnd watch уоur profits imрrоvе.

Preventing Visa Chargeback Reason Code 41

Visa Chargeback Reason code 41 results from the cancellation of recurring transactions. You should know that many major companies have their owe chargeback reason codes, these help merchants understand why chargeback was implemented. Code 41 can be initiated because of multiple reasons, here are some that merchants should know.

Chargeback Code 41 Reasons

• If cardholder files a complaint to the card brand saying that it was notified to the merchant to cancel the transaction, or account was closed but merchant still billed cardholder.
• When transaction amount is higher than an authorized dollar amount.
• Merchant had to notify the cardholder before processing, but the notification wasn’t sent to the cardholder.

Prevent Chargeback Reason code 41

Subscription sales, web continuity programs, and online memberships can result in high chargebacks, returns, disputes, and online frauds. Especially when there are re-bills, they can put merchant’s account at risk. Online merchants who have recurring payments can implement strategies to reduce the number of chargebacks and at the same time prevent frauds.

• It is necessary to get new authorization for every bill. It is better not to process the recurring payment based on old authorization, or from a voice authorization. These can cause problems for you if cardholder declares them unauthorized. Cardholder’s brand will then settle funds with the merchant’s bank because there isn’t any valid authorization. Make sure to keep in consideration that original authorization from sign up will not be valid for memberships that recur.
• Processing $1 or a smaller amount to find if the card is valid or funds are available is not a good idea. Never go for a transaction that you haven’t authorized.
• When there is a cancellation request for monthly recurring payments, make sure to process it and notify the cardholder. It is better to enroll in MasterCard and Visa account update service. This service keeps information that you have on your customers and will help prevent chargebacks and declines. For example, if there is a new card issued to the customer, there will be the new expiration date. If the information isn’t updated then you will process it and there will be a decline message. Most customers don’t update card information for recurring transactions so the best option will be to update automatically. Not many processors offer update service, you can ask this before signing an agreement.

One of the most difficult things is that you have to accept chargebacks and move one, even if the customer is taking benefits from your system. You just need to keep in consideration that your customers don’t have to provide proof of their claim, they are required to request it. One the other hand merchants need to keep records and take actions that will help prove to processors that their chargeback representment is legit.

Everything You Need To Know About Friendly Fraud

Also referred to as chargeback fraud, friendly fraud has become a huge problem for online merchants. Billions of dollars are lost every year through credit and debit card fraud. Chargeback fraud is ranked top of the list among these types of fraud. As such, it is becoming more and more important for online merchants to come up with chargeback management strategies to ensure they do not end up suffering from its serious effects.

The name friendly fraud might not sound as threatening or dangerous; however, this is far from the truth. Read below to find out more about this fraud and how you can implement an effective chargeback solution.

What is Friendly Fraud?

As previously stated, friendly fraud occurs during online credit card and debit card transactions. These transactions are referred to as card-not-present transactions. Usually, customers make a purchase online and use their card to pay. However, after they have received the goods or services purchased, they call the card company and state that the purchase was fraudulent or a mistake, this prompts the card company to chargeback the payment initially made. This results in the online merchant losing the sales proceeds, and more through chargeback fees.

How Online Merchants are affected by Chargeback Fraud

As you have seen from the above definition of friendly fraud, chargeback fraud leads to loss of sales proceeds from already processes and delivered goods/products. Furthermore, as chargeback rates for a merchant increase, their fraud risk also rises. This prompts transaction processing companies serving them to raise chargeback fees as a means of covering the increasing risklevels. These two costs hit online merchants hard leading to losses and in extreme situations closure of the merchant account. It is worth noting that these rising costs also mean that the affected online merchants have to raise product prices to cover the same.

Some Chargeback Solutions

• Create a Paper Trail

One of the most effective chargeback prevention measures online merchants can implement is to create a paper trail on each transaction. Records of the transaction, shipping, and receipt of the order provide you with the necessary evidence to argue against friendly fraud, deliberate or not.

• Easy Returns

Another chargeback security measure online merchants can implement comes in the form of easy return and refund procedures. This ensures that honest customers who are not looking to commit chargeback fraud can get their money back, while the merchant gets the product back. Furthermore, no chargeback fees will be slapped on the merchant in such cases.

• Fraud Prevention Software

Online merchants can also use software to detect the IP, shipping and billing address of their customers to be used in arguing against unfair/fraudulent chargebacks. The chargeback solution can even be used to detect customers using proxies to hide their IP addresses in an attempt to commit fraud.

• Enable AVS System

AVS system is something that can help businesses to verify all the transaction on time when they taking place on the website. AVS system saves your business from fraudster by verifying that original cardholder is making the transaction. It will ask for the correct billing address associate with the card customer using. If someone using the stolen card to make that purchase they won’t succeed as they don’t have information about the registered address with the card. This is an extra layer of security that only allows original cardholders to make purchase on your website.

With the above information, you have an idea of the chargeback tools you need to protect your online business against the threat that is, friendly fraud.

Bring Your Chargeback Ratio Under Control- Some Tips

Chargeback is a sad part of reality for the small and local business owner that accepts credit card.  It comes with excessive chargeback fees and additional expenses for tracking and investigating the fraud.  Fortunately, there are some ways on how you can protect your business against the unfair chargebacks.  This situation happens once the debit/credit card holder disputed a charge on their issuer.  In case the issuer found the dispute valid, the account of the merchant will be debited for the charge that was cleared previously; this can ultimately affect your revenue.  Here are some chargeback solutions that can help you prevent high chargeback ratios.

Utilize a Name That Consumers Can Recognize

The description of your business is basically the name that will appear on your customer’s monthly statement.  The primary cause of the chargeback is that they do not recognize the name of their merchant.  In case that your identity bears a different name other than your legal name or website, you can choose the name of your official site.  You may also use the URL of your e-commerce site that the customers can easily recognize. The name appearing on customer’s statement should be clearly identifying you to the cardholder.

Be Accessible Every Time

There are indeed some customers that will instantly file a chargeback by the time that they do not recognize a certain charge on their online statement.  However, there are also other customers who will research before filing a dispute.  You need to guarantee that there are different ways for the customers to reach you.  You may include your e-mail address, social networking account, phone number and mailing address on your website contact page. Be available as much as possible for your customers. Providing 24/7 customer services is the best way to resolve the chargeback before it occurs.

Provide a Complete Detail

Most of the people who initiated an online purchase ended up being disappointed because it fell short on their expectation.  The next thing they will probably do is to issue a chargeback since this is the product they expect.  A great chargeback prevention practice is to provide a comprehensive detail about the product.  You should include a photo of the product in different perspective.  Providing photo in different dimension can also help you in selling your product.

A Free Trial Should Be Free

If you are running A Trial Continuity Business than you should allow your customers to use the free trial for the good time period for free. The time duration should be clearly mentioned on website, customer always aware of it and processed the order by accepting the Terms and Condition of the free trial. You can also contact your customer before engaging them in a recurring transaction to know how they have ended up with the free trial. A good feedback always makes a good customer for the company.

Offer refund

This is the best approach in preventing the excessive chargeback fees.  You need to be aware that the chargeback was created as a form of security for the consumers and not for the merchants.  In case they are not satisfied with the product, they will be determined to get their money back.  Avoid the fees that come with the chargebacks by offering the refund.

These are some practices that you can use on your chargeback prevention system.  Managing chargeback is crucial to protect the revenue of the small and local business.

Requirements Of Merchant Account for All-Type Of Merchants

In this rapidly transforming world, where businesses are regularly changing their process of dealing with customers. With the development in processes, the businesses now have started accepting the payments through credit cards. Although, of all the business process up-gradation with the help of technology, that ease the maintenance of business, accepting card payments is one of the step that makes easier for customers to pay directly through their account.

But, many times merchants who are planning to start accepting card payments have very less knowledge about what is required for the establishment of a merchant account. As there are few requirements and perquisite for getting and maintaining a merchant account that enables business owner to collect payments via credit cards.

All the merchants who are based in U.S. they need to provide the general requirements that are listed below that will help merchant to prove that she/he is a legal resident of United States:

Registered business name in U.S.: The merchant account applicant must be legally incorporated in the U.S. or at least merchant registered its business with the local governance that could give them “Doing Business As” name (DBA).

S. bank account: The merchant should have a running U.S bank account, in which the merchant will get the funds of their transfers deposited.

Physical address of merchant: A merchant must have a physical presence that is an address of living or doing business that can be verified.

The above document will help a merchant to show their legal presence in United States, if a merchant have the above necessary proofs, they can apply in the bank for a merchant account that can help them to collect payment through credit cards.

Now for filing the application for merchant account the documents will vary with the businesses risk volume, that is categorize with the dependence of these factors including nature of business, monthly processing, previous processing experience, etc. Although, the basic things a merchant needs to fulfill while applying for the account is:

Application Form: The application form that will collect the basic information of the business and applicant. The information include physical address, Tax ID, average sales, bank account details, web address, phone number, etc. There is an advance pricing agreement that is regarding the pricing of the products.

Business license: The applicant’s business requires any kind of permit before being sold; the applicant needs to provide the appropriate license copy at the time of application.

Incorporation proofs: if the applicant claims that their business have the existence in all over the world, then there is a requirement of providing/submitting the copy of incorporation paperwork, that proves that business is illegible to collect payment from around the world.

Voided check: The applicant needs to submit the voided check of their business bank account, with the business name pre-printed on it, this is called permanent check. If the permanent check is not available, then the merchant will need to submit a letter from the bank stating the account details and have the bank authority signature on it.

W-9 form: This is an application form for Federal Tax ID. It’s not possible the form can be substituted with the SS-4 form with which a merchant can obtain the Tax id.

Personal guarantee: The processor tries to be safe from the risk of debt that occur form the fraudulent action that is the undeniable part of card payment transaction. Personal guarantee is basically required by the privately held companies due to the nature of business.

Other than the document, the businesses that are listed in higher risk categories, needs to provide these addition details about their business:

Business financial statements: Normally the details of last years of business transactions are required.

Personal financial statements: Again the details of last two years of personal account details.

Processing details: If the business has previously accepted the card payments, then at least of last three month of processing of payment details needs to be share with the processer.

Everything You Need To Know About Chargeback Reduction Plan

Chargeback Security Expert and Risk Analyst will assist merchants in creating a formidable chargeback reduction plan that will benefit the merchant’s business in accordance with card brand rules. Chargeback Security Team Members will identify the wrong business practices that led to the excessive chargebacks or fraud.

Chargebacks are analyzed based on frequency, amount, BIN, IP, Geo and reason codes. Processing Statements and trends go through strict analyzes outlying the problem and isolate the cause. Chargeback Reduction tools and processes are educated to the business and urged to be utilized by the merchant:

• AVS
• CVV2
• Negative Database
• Velocity Screening
• ISPY Technology
• Chargeback Security Alerts
• Third-party fraud Scrubbing service

Chargeback Analyst will analyze the effectiveness of the current chargeback reduction practices and work on implementing new parameters or new policies. New chargeback/fraud reduction initiatives and modifying existing tools and policies are suggested.

We will propose a more effective strategy that will benefit merchant’s business by reducing chargebacks and maintaining them within the appropriate threshold as required by the processing bank.

The Chargeback Security Alerts, Real-Time Management System and Chargeback Reduction Plan will enroll the merchant in the Chargeback Shield Platform, which will allow merchants to intercept chargebacks and refund them in time! Avoid a Chargeback altogether and lower the costs and risks associated with chargebacks. By creating this extensive chargeback reduction plan in document form, Chargeback Shield Platform will provide the merchant the acceptable documentation required to place the business in good standing with the processing bank within a projected time frame.

MERCHANT'S BENEFIT OF ANALYTICAL REPORT

It is really important for merchants to review their data, especially when it comes to chargebacks and to keep such risk under control. Compiling and analyzing reports therefore become of utmost importance, as it helps merchants to identify and understand the problem, take decision and increase revenue.
Here is when Chargeback Expertz comes in to rescue its customers (merchants) in order to review essential data by providing analytical reports to them on a monthly and quarterly basis.

What to Expect

Chargeback Reports: It helps merchant to analyze data contained in a chargeback report in order to evaluate the risk. Chargebackexpertz provides a tool (analytical report) that can track and provide accurate records/data of credit transactions, chargebacks and representment to detect the chargeback patterns and avoid them, if possible. Analytical reports help in monitoring chargeback ratio real-time.

Merchant’sBenefit: Analytical report is a reliable tool that helps merchant to review and calculate risk and liabilities as well as points out any flaw or issue that is causing loss, which would have remained unnoticeable without analytical report.

Real-time Report: The time span to file a chargeback dispute is short and leaves the merchant with a very less time to analyze the cause and evaluate data. Analytical Report provides monthly and quarterly statistics of the data that helps the merchant to monitor chargeback ratio in real time and make amendments in the workings, if needed.

Features

• Report of Chargeback Rates
• Monitoring Alerts
• Analysis of Win-Back Representment Rate
• Monitoring Fraud
• Identifying Merchant Error
• Indicating Key-performances
• Reviewing Profitable Areas, Geographically

Advantages

An efficient and effective tool will help merchant in the following:

• Effective Chargeback Prevention Strategy
• High Rate of Successful Dispute Chargebacks
• Recovering more Revenue and Increasing Yearly Profits
• Improving Merchant’s Reputation
• Predicting Charges and Trends
• Detecting and Decreasing Frauds

What Can You Do When You Receive A Chargeback?

When you are running a business, there are going to be some issues and returns to your customers. This should be factored into your revenue forecasting. For most businesses, it’s around .10 to .30 percent of your businesses sales that will cause chargebacks. There will be some genuine chargebacks, but there will also be fraudulent ones.

Response to the Chargeback

You can fight chargebacks, but you first need to respond to the chargeback. There are businesses that choose not to respond due to many reasons. One of them is that they are covered by chargeback protection and fraud management, so they lose no money, or they know the chargeback is real.

If you choose not to respond, the money is returned to the customer. The problem with this is that you lose the profits, the item, and have to pay a fee. This is why most businesses choose to fight chargebacks.

If you choose to fight chargebacks, you have to provide compelling evidence of the transaction and the customer. There is a wide range of evidence that can be used, including fraud scores and receipts.

After you have all of your evidence, you will have to create a response letter. A chargeback expert can help you create this letter. After the letter is completed, the letter is sent to the customer’s bank, and the money is handled.

Wait!

After the letter is sent to the customer’s bank, you have to wait. They will ask you for all the evidence that you have, and your merchant account processor will also be asked for evidence of the transaction. This can take a few days since there are delays with some of the processers.

The Bank Decide Who Gets the Money

Chargebacks were originally meant to protect consumers, so their bank decides the outcome. This is why you have to provide as much evidence that you can because their bank is going to be biased towards their clients. If you provide the right evidence, you will win the chargeback claim. This means that the Chargeback Representment is accepted which you have provided to fight against chargeback. At this point, the money is returned to your account.

If you lose the chargeback, the issuing bank put the temporary funds as permanent to the customer. You will also be forced to pay a chargeback fee.

The time that a chargeback process takes can vary from less than a month to over six months. This depends on the card network and the issuing bank. The amount of time to process the chargeback also depends on the amount of time that you take to gather evidence. Most consumers avoid chargeback since waiting up to six months to get their money back is not appealing to them.

Reduce Chargeback Management Process

In addition to taking on fraud liability, Riskified is the only fraud protection solution that commits to higher approval rates than what you currently achieve. That’s how confident we are in our serviceAt any time, customer can file a chargeback under any reason code. Chargeback not only effect profits but also, the image of the business. Lesser the chargeback ratio better will be the reputation of the business. We, at Chargebackexpertz, provide tools and technology that prevents chargebacks and in case, you get one, we will help you fight that chargeback.

Chargeback Process

When a customer files a chargeback, this is done by opening dispute and asking issuer to reverse the charge. Then Credit Card Company will contact merchant’s bank who will notify merchant regarding the same. A detailed analysis and strategies are required to win a chargeback dispute. Chargebackexpertz provides merchant with the management tools to achieve substantial results.

Causes of Chargebacks

Chargebacks can occur due to various reasons, but the most common ones are as follows: Item not received

• Item not received
• Item received is not as described
• Unauthorized transactions

Benefits BENEFITS

Reduced Risk

Increased Profits

Ensured Sustainability

Customer Retention and Loyalty

Recovered Revenue

Improved Brand Name

Improved Industrial Relationships

Declined Chargebacks.

Tools and Strategies for Effective Chargeback Management

• Identify the source so that appropriate prevention technique can be applied.
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• Management platform that audits, review and reports alerts.

• A customized action plan to reduce risk and chargeback issuance

• Challenge faulty customer behavior and friendly frauds

At Chargebackexpertz, we provide effective strategies to our clients to find the chargeback source, manage them and fight them in the most efficient way. The three major chargeback sources are:

Merchant error
Criminal fraud
Chargeback fraud

An Effective Approach to Managing Chargebacks

Chargebacks are frequent in business and are related to several causes. According to the reason for the chargebacks, they derive from merchant errors and criminal or friendly fraud. Either way, there are ways for you as a business to effectively manage chargebacks. Of course, chargeback prevention is an even more effective protective measure and should be dealt with most cautiously.

Even in the negative incident of getting chargebacks, there are solutions that can help you out. In fact, here are some things that you need to keep in mind.

Tips for Effective Management of Chargebacks

• First of all, you need to be ready to offer response chargebacks and not sit idle. There is a small window frame as to when you can dispute chargebacks, and you must be ready ahead of time.
• It goes without even saying that you should keep all the necessary documentation somewhere neat. In this way, when there is the need to present the documents for disputing the chargeback, you will have everything in place.
• You should also structure a solid defensive line to get the desired chargeback solution. It is essential that you fully understand the case, so as to make the most of your case.
• Be ready to follow up with more documents and additional pieces of information. The process can be time-consuming, and you need to be concentrated on the process.
• Understand the reason behind the chargeback and be ready with proper documents to take your stand against the chargeback dispute.
• Most of the time customer contact their issuing bank due to a lake of customer support. A good customer support helps you reduce numbers of chargeback.
• Show the issuing bank of customer what they have purchased and from where. You should have valid proof of purchase to show them.

About Professional Chargeback Management

If you are truly determined to reduce chargebacks, you must turn to the professionals and ask for their experienced eye for detail. They have got the know-how and the means to place a chargeback prevention system in motion and get you the best effects that you could have ever expected.

It is in their hands to assess risk management and go ahead with the most fruitful line of defense for your business. With their active contribution, you will be expected to get minimal chargebacks in no time. Even when you do, they will handle them properly, and the chances of payment will become slim to none. It takes a lot of hard work and dedication to accomplish that, which means that you need just the right chargeback expert for the job.

Bottom Line

It is essential that you manage your finances as a business in the most efficient manner possible. You should check out the most fruitful cooperation with a chargeback management company so that you can rest assured of the future outcome. If you are proactive and use the right tools, your chargebacks will diminish along the way, and your business will improve its revenues significantly.