The internet is an excellent place for shopping, news, and other vital services, but it also brings new challenges to business owners. One of the most common problems businesses face when conducting transactions on a website or app is fraudulent payments. High-risk industries are especially susceptible to these higher chargeback rates. High-risk sectors tend to be targeted by malignant actors due to factors such as large order sizes, high-ticket merchandise, or unusual traffic patterns around release dates. This trend has only increased recently with more people than ever using these mediums simultaneously. This blog details the numerous benefits of protection against chargebacks provided by high-risk merchant accounts, explaining the various protection functions and where to get them. Rather than wait for chargebacks to impact your revenue– learn how to manage them with experts in merchant chargeback prevention.
What are the Most Common Types of Chargebacks?
Many different variables lead to chargebacks and the types that arise. Before getting into the causes for such, let’s explore the chargeback most damaging to your business.
- Friendly fraud is when a cardholder disputes a charge despite receiving the good or service they ordered. A customer can refuse the purchase with criminal intent or unknowingly.
- When there’s something wrong with your order’s payment processing or delivery, it’s labeled a merchant error. Merchant errors are more often innocent mistakes, yet they remain a chargeback.
- When you make a purchase using stolen payment credentials, it’s called true fraud because the criminal act takes away something that should belong to someone else- in this case -the customer who paid with someone else’s legitimate card credentials.
Merchant chargeback prevention protects against all of these chargebacks regardless of type.
Why do Chargebacks Happen?
Chargebacks are inevitable, but not all chargeback reasons are created equal. Chargebacks can occur for many reasons, some of which are entirely unavoidable for business owners. Some of them may be due to authentication errors, fraud, or processing issues, while others can indicate that the cardholder disputes their purchase altogether. Regardless, the reason code will inform you why the chargeback occurred. Also, these chargebacks often happen due to a merchant’s lack of chargeback prevention. Consequently, it is essential to acquire the correct merchant account for your business’s payment needs early to combat chargebacks and fraud effectively.
How is Merchant Chargeback Protection Provided?
To keep your business safe from chargebacks, make sure you’re using the right tools for each type of fraud. Maintaining fraud prevention tools, generous refund policies, and delivery confirmation are all effective ways to minimize chargebacks. The most common technologies used in merchant chargeback prevention are:
- 3-D Security
- AVS/CVV matching
- Fraud risk scoring
- Velocity checking
These tools are all available through high-risk merchant account chargeback protection methods.
Where to go for Merchant Chargeback Protection
It’s easy to become a victim of chargebacks. With Seamless Chex, you can breathe easy knowing that we have your back! The company’s experience with chargebacks of all types makes them an expert on all your payment inquiries. We have high-risk merchant accounts that include all merchant chargeback prevention needs!
Contact a Seamless Chex representative to learn how to best fight chargebacks today!