Chargebacks are the reversal of a prior outbound transfer of funds received from your customer for any disputed or fraudulent transactions, and more often than not, merchants are left out of the dispute process. Rather than seek a refund with the merchant, the customer simply calls the number on the back of their credit/debit card and seeks an automatic reversal. Excessive chargebacks can render merchants defenseless, making it crucial for merchants to launch their e-commerce businesses with chargeback protection.APPLY NOW
High-risk merchants should be mindful of chargebacks, as too many of them could place their business in jeopardy. Corepay tailors payment processing solutions to meet every merchant’s needs while providing them with pragmatic advice concerning chargeback protection. Some of the common reasons that customers initiate chargebacks include fraud, friendly fraud, unrecognized transactions and services or product not as described.
When initiating chargebacks, consumers must provide credit card companies a reason, which under the technical code could include everything from expired card authorizations, insufficient funds, identity theft, or friendly fraud. Corepay offers the tools for merchants to alleviate fraud in the online payment world by using solutions such as VMPI and 3-D Secure 2.0 as an added layer of security.
There is nothing friendly in this scenario for the merchant. This type of chargeback fraud occurs when a customer abuses the dispute process by going directly to the issuing bank instead of seeking a refund for the merchant. This can occur when customers are attempting to get something for free and knowingly use loopholes in the chargeback thresholds againsts the merchants. Corepay can ensure that your business is utilizing all available solutions to stamp out this unfriendly practice.
Some chargebacks are initiated when a customer fails to recognize a transaction on their credit card statements. High-risk merchants can avoid this by ensuring their payment descriptor is the merchant name or sending an e-receipt with their contact information to the customer.
Quality chargebacks can occur when a customer receives defective or not as described merchandise, when services are not provided, or when merchandise is not received. By providing excellent customer service and being transparent with your customer about any issues or delays, high-risk merchants can avoid their customers initiating a chargeback.