Chargeback Protection

Chargeback protection is imperative to analyze, prevent, and fight chargebacks no matter the size of your business. A chargeback occurs when a customer files a dispute with their bank over a debit or credit card transaction. These banks often have a cardholder services disputes team that investigates the customer’s dispute request.

While some disputes are done for legitimate reasons like fraud or ecommerce merchant error, the vast majority (50-80%) is from what’s called “friendly fault”. This is when a customer initiates a dispute for an illogical or unethical reason. Merchants are not notified in over half of these disputes, leaving them defenseless to prevent a chargeback.

The Cost of Chargebacks

Failure to prevent a chargeback lost U.S. merchants over 1.32% of revenue according to a study by LexisNexis. Another statistic from this study shows that large e-commerce businesses spend $115,000 or more on credit card fraud protection for merchants. Even with this investment, they will lose a large percentage of their revenue due to fraud. The cost of not having chargeback protection leads to increased costs, loss of revenue, and potentially the business’ reputation.

Chargebacks Affect Many Businesses Types

Preventing chargebacks is a concern for any business that accepts debit or credit card transactions. There are some businesses that have higher occurrences of chargebacks. These business types include:

  • Adult Entertainment
  • Antiques & Collectibles
  • Auto Parts & Accessories
  • Cigars & Smoking Accessories
  • Credit Repair
  • Debt Consolidation
  • Downloadable Software
  • Educational Seminars
  • Electronics
  • Firearms
  • Furniture
  • Luxury Goods/Services
  • MLM & Direct Sales
  • Moving Companies
  • Penny Auctions
  • Sports Betting
  • Tech Support

The reason for this stems from the business’ propensity for high ticket sizes, higher risk product sales, and high volume. Each business’ propensity for chargebacks often marks their business and requires them to get high risk credit card processing in order to function day to day.

Preventing Chargebacks for Good

Chargeback protection is something that your business should always be optimizing for, both internally and externally. One way that you can fight disputes is keeping a record of all your transactions. The key to preventing chargebacks is having documentation that proves the customer authorized the charge. Copies of receipts, both printed and emailed, can be used as evidence in these cases.

In cardholder services disputes, many times the customer will get a conditional refund on a disputed charge while the bank finishes its investigation. During this period, the merchant can provide the receipt to the bank to show that the charge was valid. Sometimes a customer also forgets that they made the transaction or don’t recognize it on their statement. The actual receipt could help jog their memory and win your case against the chargeback in question.

Another method to use for chargeback prevention is providing exceptional customer service. This means having convenient customer service hours, live chat, and service level agreements that quickly resolve issues. Representatives who are well-trained and empowered can look for ways to save a request for a refund and prevent a chargeback from occurring.

Consider a Chargeback Management Solution

The strategies shared above are helpful in preventing chargebacks. But in order to systematically fight chargebacks, it requires a more encompassing solution. Many of the controls that are out there only target general fraud and cause a more time-consuming process for the merchant.

PaymentCloud understands the necessity of chargeback protection for merchants to help prevent a chargeback and reduce the payment processing risk. Merchants who partner with us receive a comprehensive, multi-layer approach that identifies and mitigates chargebacks and their common risk factors. It provides insight on how to avoid chargebacks by:

  • Putting all of your data on a single platform to allow for efficiency
  • Enabling real-time merchant alerts starting from the initial dispute
  • Responding to customer disputes and monitoring them to resolution
  • Reporting in real-time so you can take proactive measures
  • Preventing alert analytics that can identify future chargeback trends

Let us show you how easy it is to get started.
Contact us at 1-800-988-2215 or by filling out our simple online form

Full-Service Merchant Services

PaymentCloud is a full-service ISO dedicated to providing innovative solutions and unparalleled customer service. The merchant services field is antiquated to say the least; we aim to break out of the status quo. Our suite of innovative services was built to save you time and money.

Quick Deposits

As a business owner, you should never have to wait for access to your funds. You have bills to pay and a business to run, and we understand. That is why PaymentCloud offers next day funding for ALL card types.

Our next day benefits are great for businesses that...

  • Process the bulk of transactions in the evening
  • Process heavy volume during the weekend
  • Are located on the West Coast
  • Have daily or weekly expenses such as payroll, inventory restocking, or shipping costs

Contact PaymentCloud today at 1-800-988-2215 to learn more.

Innovative Technology

PaymentCloud is an industry leader in product innovation and cutting-edge technology. We provide our merchants with payment processing solutions customized to their business type. Our terminal selections include the latest in EMV Smartchip technology, wireless or PIN pad options, and countertop devices.

We also offer mobile processing hardware and applications, tablet POS systems, and our secure online payment gateways. Your dedicated account representative will assess the needs of your business and set you up with a solution that best fits your needs.

Contact PaymentCloud today at 1-800-988-2215 to learn more.

Dedicated Account Rep

At PaymentCloud, customer and technical support are aspects of the business that we take seriously. Each of our account representatives is rigorously trained in merchant services, product specifications, pricing structures, and technical support.

When you set up your account with us, you will be assigned one of our expert representatives who will set you up with everything you and your business needs. We want to see you succeed and strive to provide the best support that we can.

Your account representative will:

  • Assist you with filling out your application, helping you get approved quicker
  • Walk you through setting up your equipment or electronic processing software
  • Go over pricing structures as well as Visa/MasterCard rates and fees
  • Notify you when industry and/or security updates arise
  • Provide you with personalized customer service when you need it

Contact one of our specialized representatives today at 1-800-988-2215 to learn more.

Competitive Rates

We are proud to offer competitive rates for payment processing services, including highly affordable equipment leases for terminals that accept swiped and keyed-in credit card transactions.

We’ll work with you and try our best to beat competitor rates. Take advantage of our FREE rate comparisons to show just how much you could save.

Contact PaymentCloud today at 1-800-988-2215 to learn more.