How to fight chargebacks. Part 1

How to fight chargebacks. Part 1
Business Development Specialist
Yuliia Mamonova

Chargebacks. Don’t you just feel frightened with an idea of having to deal with them? We think all the merchants do. So, if you are looking for ways to fight chargebacks, you are not alone in this never-ending battle.

No matter how carefully you run your business, at one point or another, chargebacks will find you. We are sorry to say this, but they will inevitably come your way because customers are people: you can never be sure that your product will be 100% satisfactory to them (no matter how many trials and tests you run on it).

Besides, some businesses considered high-risk due to an increased number of chargebacks continuously find themselves under close inspection of card companies and banks that strive to pull unreliable merchants off the market.

Not only it is a bane of the merchant’s existence, but it also takes up ages to resolve chargeback issues. And the worst part for you as a merchant is that the issuing banks are typically more inclined to take the customer’s side rather than a merchant’s.

Thus, while the client immediately gets a benefit of a doubt, merchants invest labor and time to prove that the chargeback is invalid or lacks solid reasons behind it.

However, by no means, we are saying that it is impossible to fight chargebacks.

Thanks to the advances in technology, new software to fight chargebacks emerges. And in this article, we have gathered a list of 15 different systems that can be of much help to you if you’re willing to detect potentially fraudulent activity in advance and prevent it before it turns into a chargeback.

Software to detect and prevent chargebacks (Part 1)

1. Experian.

These guys are aiming to help merchants from all over the globe protect their businesses from fraud.
Fraud has the potential to damage company’s reputation, undermine its adherence to compliance standards, and lead to serious financial troubles.

That is why they want to assist merchants in their pursuit of online fraud and chargeback detection and prevention.
For that, they developed a cutting-edge system that allows them to monitor clients’ accounts to detect any inconsistent information. Such accounts are assigned a unique score that explains how safe this account is and how high the risks of fraudulent activities are.

The merchant is informed about potential fraudulent activities and is equipped with essential software to fight chargebacks.

2. LexisNexis.

Another excellent tool for professionals that want to fight chargebacks and, what is more important, prevent them. The system offers practical solutions to mitigate risks related to possible chargebacks.

What makes this tool unique? Well, they state that they not only work with individual merchants but also provide governmental institutions with their services. This means that they truly stand for their software and guarantee security and reliability of the system.

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3. Ethoca.

This company has also developed a unique solution powered by international card issuers and merchants that identifies and fights chargebacks.

According to their product description, their tools allow them not only to dispute existing chargebacks but also monitor and screen each transaction for potentially fraudulent activities.

With one single goal of creating an excellent pain-free customer experience with the merchant, these guys are doing their best to help merchants distinguish good customers and criminals without ever confusing the two.

4. Sift Science.

Determined and tech-savvy, Sift Science guys aim to help companies from all over the world to win customers’ trust. According to the testimonials of happy clients, this solution is incredible when it comes to decreasing chargeback levels and saving tons of customer’s time and effort that would otherwise be spent on dispute management.

The philosophy behind the system is that merchants should win the trust of customers to stay in business and strive. However, this trust thing works both ways, and merchants should also know which of their potential clients they can trust.

The system assigns scores to each and every customer that either shows that a merchant can trust the user (based on his previous performance, IP address, transaction history, etc.) or not. As a result, many various companies enjoy the positive effects such a system brings in.

5. Verifi.

These folks have developed a system that eliminates and fights chargebacks, and, as a result, grows one’s profit.
With more than 13 years of experience under their belt, Verifi team keeps seizing opportunities to grow and develop. Thus, today they prevent more than 200,000 chargebacks every month and have their “win” rate in the chargeback dispute management almost twice as high as a market average.

Therefore, if you are looking for a reliable chargeback prevention tool, consider taking a closer look at this company too.

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6. MaxMind.

This tool is a fantastic find! It consists of several vital features including a riskScore, and device tracking as a part of the minFraud service, GeoIP2 services, and Open Source Data that aim to detect and fight chargebacks.

MinFraud “provides real-time fraud analysis, post-query alerts, and data points to inform manual review and custom rule creation.”

All the transactions by users worldwide are stored and scored inside the system. Thus, every merchant gets to see a riskScore for clients online which skyrockets his chances to avoid troubles by selling goods and services to unreliable customers.

Meanwhile, GeoIP2 services help identify the continent, country, registered and represented countries as well as time zones and domains based on the IP address of every single customer. This data is vital to the overall success of your fight against chargebacks and fraudulent transactions.

Over to you

These are but a few excellent services to pay attention to when looking for excellent chargeback prevention services. We have found nine other ones that are definitely worth to mention. And we will talk about them in our next article. So, stay tuned and watch out for chargeback: they’re dangerous!



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