ABOUT CHARGEBACK MITIGATION

Chargebacks Mitigation Services for Merchants

When comparing the cost of handling chargebacks, spending time and money defending them, and dealing with the implications of a high chargeback rate, you may discover that investment in a chargeback solution is worthwhile.

To achieve sustainability, you must develop a long-term, proactive risk mitigation strategy.

Some Examples of Mitigation Styles:

MITIGATION TYPES

Chargeback Notification Service

 This service helps by alerting you of ongoing conflicts and offering you the opportunity to address the issue. To keep chargebacks under control, high-risk merchants increasingly frequently use early warning systems. You reduce chargebacks by up to half with this service.

Companies that have partnered with certain credit card companies offer these chargeback notifications. If you sign up for this service, you’ll receive a notification when a consumer contacts the issuing bank to contest a transfer.

  You then have a 24-hour window to act before the disagreement becomes a chargeback. You have two options: either get an immediate refund to avoid a chargeback or do nothing and accept the chargeback.

 Managing and contesting chargebacks can be a pain. You can save money by outsourcing chargeback management to a company that specializes in chargeback mitigation services.

MITIGATION TYPES

Deflecting a Chargeback

This service permits the card issuers and merchants to coordinate on time to prevent friendly fraud. An intelligent merchant early-warning system gives you more choices for solving issues before escalating into chargebacks.

Friendly frauds make up 50%-80% of all chargebacks; their basis is in unethical and unreasonable consumer conduct, such as misunderstandings, confusion, carelessness, or a cardholder’s choice to deal with their bank rather than the merchant. Giving the customer information about the charge is a standard way to resolve such disputes.

For example, in case of a shipping delay, the customer can dispute a charge assuming that the merchant has taken their cash and vanished; through chargeback deflection service, the issuer can share this information with their customers, leading to fewer chargebacks.

Deflecting a chargeback demands a more technical interface than other methods of chargeback mitigation, but it is a cost-friendly and preventive strategy to minimize friendly fraud chargebacks.

MITIGATION TYPES

Guaranteed Chargeback Service

This service involves a payment processor screening transactions for probable fraud indications using risk scoring machine learning and other ways. The payment processor will reimburse the fees if a merchant receives a later chargeback on one of these transactions.

Chargeback guarantees have some conditions, such as covering just particular chargeback codes or only charging up to a specific price level. They may also include restrictions, such as delivery confirmation, that you have to meet before the processor guarantees the transaction.

Guaranteed chargeback often drives up your cost per transaction, either through an extra fee on each purchase or because the payment system which offers the guarantee has a higher transaction price.

MITIGATION TYPES

Artificial Intelligence Fraud Protection Services

Artificial intelligence allows banks to detect fraud more accurately while reducing false alarms. The system works by analyzing each customer’s typical payment behavior and identifying suspicious transactions that are out of the ordinary using behavioral risk models.

It puts all aspects of a card holder’s transactions together, such as date, user location, product, value, the supplier, and customer behavior profiles.

Benefits of AI Fraud Protection Services