April 8, 2021 / by Jarrod Wright /
Chargebacks may do serious damage to a merchant’s bottom line. The can lead to added fees, the cost of lost merchandise, shipping costs and transaction fees, and a chargeback rate that exceeds the acceptable threshold. So, it’s common sense that the more chargebacks a merchant prevents, the more revenue they will retain for their business. […]
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How to Prevent Chargebacks
April 8, 2021 / by Jarrod Wright /
Chargebacks may do serious damage to a merchant’s bottom line. The can lead to added fees, the cost of lost merchandise, shipping costs and transaction fees, and a chargeback rate that exceeds the acceptable threshold. So, it’s common sense that the more chargebacks a merchant prevents, the more revenue they will retain for their business. […]
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What is a Chargeback?
February 15, 2021 / by Jarrod Wright /
Chargebacks are often misrepresented and used interchangeably by cardholders with refunds. True, the consumer receives their money back in the end, but the two terms have vastly different meanings. To fully understand where chargebacks come from and how they negatively affect merchants, let’s start at the beginning. A chargeback is a forced transaction reversal initiated […]
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What is the Credit Card Purchase Process?
November 24, 2020 / by Jarrod Wright /
It’s a common misconception to think that the process that occurs at checkout each time a credit card is swiped, inserted, or tapped, is as simple as flipping a magic switch. The truth is that there are multiple complex steps involved every time a credit card purchase is made. Merchants don’t instantly have access to […]
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How to Ban Fraudsters from Your Site
October 13, 2020 / by Jarrod Wright /
Online fraud is a threat to businesses from all industries, and it carries devastating consequences. If there’s one positive takeaway from this ugly truth, it’s that once you’re aware of individuals who are engaged in fraudulent activities, you can prevent them from making attacks in the future. Follow these six steps to reduce the risk […]
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What is Compelling Evidence?
September 1, 2020 / by Jessica Velasco /
As a merchant, you have two options for responding to a customer chargeback: either accept the loss, or try to recover the funds through the representment process. If you choose to fight the chargeback, the success of your representment will depend largely on the compelling evidence you submit. When you submit a transaction for representment, […]
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What is a Chargeback Win Rate?
May 13, 2020 / by Jessica Velasco /
A chargeback win rate is one of the primary key performance indicators (KPIs) used to gauge a merchant’s effectiveness at managing chargebacks. With the exception of the merchant’s chargeback-to-transaction ratio (also referred to as a chargeback ratio), no other KPI is so central to this objective. Some merchants tend to confuse the two, or misunderstand […]
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How Do I Know When I Have too Many Chargebacks?
March 31, 2020 / by Jessica Velasco /
Every chargeback represents a loss of revenue. Thus, the ideal number of chargebacks filed against a merchant is “zero.” That’s not always possible, though, as some chargebacks are unavoidable. Most merchants can absorb the occasional dispute without much trouble. However, there is a point of critical mass for most merchants, representing a tipping point in […]
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What are the Consequences of Filing a False Chargeback?
February 21, 2020 / by Jessica Velasco /
When one makes a purchase using a credit or debit card, that person enjoys certain consumer protections offered by card networks like Visa and Mastercard, along with the bank that issued the card. One of the primary protection mechanisms is the chargeback. A chargeback is a kind of forced bank reversal. The process was first […]
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What is Friendly Fraud?
January 8, 2019 / by Jessica Velasco /
Friendly Fraud May Cost Businesses More than $30 Billion in 2019 The average eCommerce merchant would assume most chargebacks as the products of criminal fraud attacks. In reality, fewer than 10% of all chargebacks are tied to a criminal fraud attack. The majority result from a practice known as “friendly fraud.” Friendly Fraud: Defined Friendly […]
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What is the Visa Chargeback Monitoring Program?
November 21, 2018 / by Jarrod Wright /
As the name implies, the Visa Chargeback Monitoring Program, or VCMP, is a program administered by Visa. It exists to identify and monitor merchants struggling with Visa transaction disputes (commonly called chargebacks). Acquirers can use the Visa Chargeback Monitoring Program to single-out merchants with excessive chargebacks. They can help assess and review the merchant’s situation, […]
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