Chargeback Alerts

In the 2016 merchant account market there’s been a drastic increase in chargebacks and the negative effects have seen devastating consequences crossed many vectors. With many merchants and companies now being responsible for extreme fees associated with chargebacks it’s become imperative to be proactive in attempting to lower the rate at which they occur. The problem has become so extreme that is reached over $40,000,000,000 in lost revenue. Over 80% of the merchants are not contacted until after the dispute has already been filed. A Chargeback alerts is the solution to many companies’ chargeback issues. But being proactive and receiving notice prior to a chargeback occurring you are able to save fees and avoid losing more processing ability altogether. We have seen many of the major processors come out with new rules in 2016 many of them limiting no more than 1% chargebacks can occur. For some industries this is not a problem offer many industries that do not have the physical card in hand this is a detrimental and devastating move to their bottom line. The unfortunate move to allow chargebacks without consulting merchants makes the responsibility of preventing fraud solely on the merchant’s shoulders. And since there is no way to truly do that the best option left is receiving notice the chargeback is about to occur giving you plenty of time to issue a refund wore resolve the issue with the consumer. The fee associated with receiving chargeback alerts his dramatically lower than the lost time revenues and fees associated with the standard chargeback. With a major concern even be on the financial expense is taking the risk of losing one’s ability to process payments. This threatening and scary scenario could see a company overnight lose its ability to process all monies essentially closing the doors with absolutely no way to reopen them and no fault of your company. Notices regarding chargebacks have been designed to give you the large enough window to respond and protect more bottom line. Real time notifications to prevent not only current issues with billing previously done but if I’m at a billing is set up and can also helped stop future situations. Challenging chargebacks directly with processors and banks can be a time consuming and arduous task. To do the complex and often expensive efforts that are needed many firms offer services to the challenging for majority of the time having knowledge of this complex task and the ever changing rules to use these firms are hands up being able to fight on your behalf. It is estimated at $12,000,000,000 last year alone could have been buyer’s remorse along and falsely identified as fraud but unfortunately with the new rules without knowing how to challenge and without having notices set up most firms will continue paying the price. MasterCard is the latest processor to announce stricter rules regarding how many were rather than out what percentile they will allow before cutting off processing. As it gets tighter and tighter companies who are not proactive may find themselves out in the cold.

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