Chargebacks are life sucking charges that can deplete your business’ resources. Chargebacks occur when customers contact banks to dispute a charge to their accounts. This process is a necessary consumer tool to protect them from false charges or identity theft, however a large amount of chargebacks are the result of “friendly fraud.” This type of fraud happens when a customer makes an honest purchase and then disputes it in the hopes of getting their money back, while keeping the merchandise. Unfortunately, too many consumers get away with this type of fraud. Over 58% of the time, merchants aren’t even aware that a chargeback has occurred until it is too late to investigate the validity of the claim. Plus when chargebacks occur, merchants are penalized with fees from their providers in addition to losing the sale.
Merchants with an online presence must protect their assets from chargebacks. As more and more consumers stream to the internet to make purchases, the potential for a surge in online consumer fraud and chargebacks is real. Diligent fraud prevention will protect your profits, reputation, and customer information.
A recent report by Chargebacks911, a Tampa chargeback-management firm, shows the U.S. cities with the highest chargeback rates. If your business operates in these areas, be on the lookout for suspicious chargeback activity. According to the report, the East Coast has the nation’s highest chargeback rates. Cities like New York City, Astoria, N.Y, and Plainview, N.Y. have chargeback rates between 17% and 13%.
EMB Chargeback Shield
EMB offers Chargeback Shield, a specialty chargeback suite that monitors, tracks, and alerts companies whenever a chargeback is filed against them. CBS’s Cardholder Dispute Resolution Network (CDRN) is powered by Verifi and the Ethoca alert system, enables research and resolution of chargebacks. With this partnership, eMerchantBroker Chargeback Shield has reduced the frequency of merchant chargebacks by 15-30%.
Chargeback protection is one more exceptional service that EMB provides. The Chargeback Shield will defend your account while you manage your business. Let competent merchant account protection keep your business on track this year. The presence of the chargeback protection will take the risk out of high risk business. Apply for a merchant account with EMB today and get chargeback coverage right away.