Shield your Payments
To secure your E-commerce businesses and stay ahead of payment fraud, you must be able to identify malicious behaviour accurately, force and reduce possible refunds and chargebacks. Complete your transactions with full confidence by choosing our Risk management, Fraud management, Smart subscription system, and Chargeback protection services and strategies.
Does chargeback mean a refund, and how does it work?
The main difference is in who issues it. When talking about a REFUND, the Merchant gives the customer the money back directly after the return or exchange of a product or reports dissatisfaction – in case the purchased goods or services do not meet the customer’s requirements. For CHARGEBACKS, the consumer receives credit from his or her card issuer. Card networks, with their rules, enable the customer, also known as the cardholder, to make a complaint about the transaction through which they purchased the product. Card networks have a set of rules, by which it is possible to file a transaction complaint. To complain about the transaction, the customer (cardholder), must go to the bank that issued the card and request a refund with an explanation of the complaint. There are several groups of reasons why a transaction can be eligible for complaint, and the two most common are Fraud or Customer Dispute.
How Do Chargebacks Hurt Your Business?
The Merchant’s bank registers each chargeback request and checks the business history. ThePayPortal provides chargeback mitigation services that will protect your portfolio by enrolling your business with the most powerful cutting-edge technologies and software solutions. Fees, loss of products, increased processing costs, and even Merchant account termination are potential consequences of chargebacks and can significantly impact your business’s finances. On top of it, if the Merchant’s business is also compromised by the type of industry, many transactions and many chargeback requests, or reported abuses, the bank conditions the Merchant with various collaterals. Even though Merchants cannot eliminate chargebacks, they can take steps to dispute chargebacks.
How to Prevent Chargebacks?
The right chargeback prevention steps can dramatically reduce disputes. In fact, preventing chargebacks may be the best thing you can do to increase revenue and ensure the long-term sustainability of your online business. Pay attention to the eight following fundamental strategies that are most effective at reducing chargebacks:
1. Use available prevention tools – Verifi CDRN (for Visa) and Ethoca (for Mastercard) – Automated response programs provided.
2. Improve customer service – Consider making round-the-clock customer service equally accessible.
3. Better Order Communication – The more customer contact you have, the more confident those customers will feel.
4. Eliminate Merchant Error – Monitor day-to-day practices to ensure adherence to best practices at every level.
5. Provide authentic marketing – Make sure the products are represented clearly and accurately.
6. Manage Recurring Payments – Be proactive with initiating communications, and make subscribers feel privileged.
7. Combat-friendly fraud – Make sure the billing descriptors appear on your customer’s payment card clearly indicating where the transaction was made.
8. Seek Professional Assistance – Devise a strategy to reduce the number of chargeback requests by risk reduction methods, making your billings smarter and transaction processing secure.