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How to fight chargebacks.

How to fight chargebacks.
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.

Meet 15 applications to detect and prevent chargebacks

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.”

The system stores all the user’s transactions worldwide. 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.

7. Riskified.

Riskified offers its clients a 100% chargeback guarantee. They say that every order in their system can enjoy this guarantee when card-not-present operations take place. This way the company strives to protect its users from fraudulent activity and unauthorized usage of a particular card. Such a solution brings customers a peace of mind given that they don’t have to worry about fraud and all the financial loss it can bring. All in all, these guys strive to make payment processing chargeback-free to help merchants grow their businesses safely.

8. Charge Advisor.

A solution developed by Ikajo International is another alternative chargeback prevention tool on our list. It aims to identify particular events in the feed of customers’ transactions.  The software does it to minimize and eliminate fraud and chargebacks. Besides, it optimizes traffic performance and other payment processing aspects.

 

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How does it work? Its creators state that the system analyzes lots of different parameters related to the transaction, evaluates and compares them, assigns scores to each significant parameter and blocks transaction that can potentially be fraudulent.

Besides, the tool is built with machine learning tools meaning that it keeps growing its database and sharpens its ability to prevent chargebacks better each day.

9. Fidelity.

Fraudwatch by Fidelity is a solution that allows merchants to pay only for the transactions he considers to be high-risk. This means that the merchant chooses specific characteristics that based on his or the chargeback prevention service provider can be a sign of potentially fraudulent activities and chargebacks.

Every such transaction will be monitored by the Fraudwatch solution. Finally, the results of such an action will be formed in a report and sent to the merchant.

10. Kount.

Kount has been developing their fraud and chargeback prevention system for more than twenty years now. As a result of all the efforts invested in the process, a reliable and fully customizable system came into being.

A goal of their chargeback prevention is in simplifying the process as much as possible so that the customers do not feel any friction at the checkout.

The system which is extremely easy to integrate and simple in day-to-day usage not only saves merchants’ time and effort but also increases sales rates and boosts conversions, since clients happy with the level of services delivered are more likely to stay and turn into lifetime paying customers.

11. Signifyd.

The uniqueness of this system that otherwise is just another great chargeback prevention tool is that the merchant can submit claims to get full reimbursement for eligible chargebacks the system had not prevented.

The claim will be studied by the company, and in case of an approval, your funds will be returned back to your account within 48 hours. Sounds incredible, don’t you think?

Surely, you will feel confident about your costs and transactions made within the system.

12. Chargebacks911.

To make sure you understand the danger of chargebacks, these folks have added a special calculator that helps you realize your total average chargeback cost based on the average number of chargeback per month, average transaction value, chargeback and admin fees, and cost of goods and shipping. Of course, the result will really open your eyes to the reality if you never understood how costly chargebacks could be to your business.

So, the solution offered is 100% customizable to the needs of every individual merchant, fast, and science-backed. They work with numerous currencies and across various verticals. Besides, their testimonials speak loud for them!

13. FraudlabsPRO.

FraudlabsPRO aims to assist merchants in their fight against chargebacks by analyzes every transaction before its approval. The payment is looked at from different aspects. In case any potential can be in place, it is blocked right away.

It is automatically to the blacklist to help other merchants in the global merchant network.

Therefore, fine-tune the solution to your needs, and have it save your business from drowning in the devastating chargeback effect.

14. Chargeback defense.

Their motto “Eliminate chargebacks before you fight them” says a lot about the motivation of the company.

A list of services related to chargeback prevention process is quite lengthy and includes encrypted evidence, chargeback eraser, lost chargeback recovery, real-time dispute response, and compliance/regulation.

They have it all covered so that neither you nor your customers worry about financial loss related to fraudulent transactions.

15. Fraud.net.

Having more than 432,000 fraudulent events caught, the solution in question can help you indeed keep your pockets full.

The system strives to identify potential fraudsters and see what customers are most likely to file a chargeback in the future. As a result, system blocks such clients.

Besides, the system allows you to approve good orders, target fraudsters, and prevent data breaches which makes it an all-in-one solution for every e-commerce merchant.

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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