Do you have a chargeback protection plan for your merchant account? Receiving alerts is the 1st step to reduce and prevent future chargebacks.
For merchants, the ability to accept credit card payments from customers can have drawbacks. Possibly the worst thing about having a merchant account is the risk of chargebacks by customers.
A chargeback, also known as a reversal, is a credit card transaction that is disputed by the customer. Chargebacks are a form of fraud protection for customers by card-issuing banks.
Even when chargebacks seem to be a rare occurrence for merchants, diligence in dealing with them should not be underestimated.
Chargebacks can happen for a number of reasons; from customers receiving wrong merchandise, to items not received, to technical glitches that make a duplicate charge, to legitimate fraud. As soon as a chargeback is filed with a customer’s bank, the bank immediately begins to investigate the claim.
Often, the merchant is not at fault when customers make the decision to chargeback a transaction. However, banks almost always side with the customer. In cases where the bank rules in favor of the merchant, damage is still inflicted upon the merchant and may result in penalty fees.
Penalties from chargebacks can cost merchants up to 270% of the chargeback amount. And, a merchant that has as few as 2 chargebacks in 100 transactions is at risk of having their merchant account terminated.
The inability to process credit cards would be a crippling blow for many merchants, especially online businesses.
Get Chargeback Protection
Through our chargeback resolution network partners, The Transaction Group is able to offer chargeback protection to merchants. This service, called Chargeback Shield, is available via Verifi’s Cardholder Dispute Resolution Network (CDRN) and the Ethoca alert system.
When enrolled in the service, merchants receive alerts from these systems as soon as there’s a customer dispute. This gives merchants direct control over resolving disputes before they become chargebacks, making it a valuable chargeback prevention tool.
The Chargeback Shield reduces the frequency of chargebacks by 30%, and eliminate potentially devastating effects that chargebacks can have on a business. The low cost per alert with Chargeback Shield is a fraction of what an actual chargeback can cost a merchant.
Petershagen Call 888-383-8056 and get Chargeback Shield now!