Chargebacks are an often occurrence in any type of online business; however, they do affect high-risk businesses more frequently. Chargebacks can cause havoc for any business, as the majority of the time chargebacks are not reported to the business until funds are taken from the business. Chargebacks can create up to 270% of lost money on a chargeback. This means if your business suffers a $100 chargeback you may wind up paying $270 in fees. While it may seem inevitable that a chargeback will happen to your business, there are ways to help keep them away.
First of all, any responsible merchant should monitor who is purchasing, and where they are shipping. Be sure to investigate any orders that are coming from an area known for high fraudulent activity, such as Eastern Europe (Russia, Ukraine, Belarus, etc.) and Indonesia. Also, require all purchasers to provide a CVC or CVC2 code (the code on the back of the debit or credit card). A hacker normally would not have these codes on hand, so it helps prevent fraudulent activity. A third combatant, and perhaps the most important, is chargeback insurance.
While chargeback insurance does not keep chargebacks away, per se, it does help alert you to the activity. Without chargeback insurance, the majority of merchants are not alerted to pending chargebacks. By choosing chargeback insurance, you are not only helping your business, but also your customers. It is always wise to post about chargeback insurance on your website, telling how it will help customers in the case of a fraudulent transaction. This can put customers at ease, especially if your web store is new, and there are not many online ratings for it. Chargeback insurance is affordable for you and easy to acquire, especially through eMerchantBroker.com (EMB).
EMB has one of the highest-rated chargeback insurance suites available in the USA. They have partners with Verifi and CDRN to help notify you of the chargeback. Once the CDRN is involved, they inform you, the merchant, immediately regarding the dispute. The merchant will receive the request and can then choose whether or not the dispute should be refunded or declined. This is the pivotal step in allowing your business and your transactions to come back within the realm of your control. The CDRN reduces the frequency of chargebacks by 15-30%, a percentage that represents a significant amount of your business’ revenue.
Chargebacks are devastating to any company, especially a high-risk company. They seem inevitable, however by investing in chargeback insurance you can limit the number of chargebacks you pay out.
Click on the button below to start your Chargeback Insurance today!
