High risk merchants are presented with significant challenges in dealing with chargebacks, many of which are beyond their control. One of the biggest issues is that some of the largest processors in the US have woefully inadequate reporting systems to notify merchants that chargebacks have occurred.
You may not even know that a chargeback has occurred because the reports are so bad. That is, if reports are even available to you. Often times, all you see is the deduction of the chargeback fees from your business bank account.
It is often not clear what the deductions are for because the labels on the transactions do not specify chargebacks. There is no way to correlate the information with specific transactions orders.
And, by the time the notification is received and the information presented figured out, it is too late for you to respond to the chargeback. Leaving you out in the cold.
Depending upon your payment processor alone to provide you the tools you need to manage your chargebacks is a recipe for disaster. Choosing the right partner to help manage chargebacks is one of the best business decisions a high risk merchant can make to safeguard payment processing accounts.
Keeping chargebacks low is important to protect your high risk merchant account. If chargebacks exceed 1%, your high risk merchant account can be jeopardized.
An early warning chargeback alert gives you the opportunity to immediately issue a refund to the customer and thus avoid a chargeback all together.
When a consumer contacts the issuing back to dispute a transaction, you are immediately notified. At this point, you can refund the customer. The dispute is then successfully resolved. Since the customer has been issued a refund, there is nothing further to dispute. And a potential chargeback is successfully avoided.
The service provides an interface for cardholder institutions to use, which communicates directly with you by instantly obtaining a refund for a transaction that was at risk of becoming a dispute.
Early warning chargeback alerts are one important tool in keeping chargeback ratios low and protecting your high risk merchant account. Although chargebacks can never be completely eliminated, early warning systems are a big help in keeping chargeback ratios low.
Are you a high risk merchant interested in reducing chargebacks?
Contact firstname.lastname@example.org today.