Chargebacks Harm Your Bottom Line
A chargeback is when a customer reverses the transfer of funds from their accounts to your business due to a dispute regarding the transaction. Whether the product or delivery was faulty, there was a processing problem, or even occasionally fraudulent purchases, chargebacks are a costly issue that can cost a business large quantities of money and time. Chargebacks absorb internal time and effort in your business and damage your reputation with your bank or merchant account provider.
How can you Reduce Chargebacks?
The Cardholder Dispute Resolution Network (CDRN) can help reduce your business’ chargebacks and protect you from fraud. Customers opt to contact their card issuers for transaction disputes, cutting you the merchant out from the loop about chargebacks. CDRN redirects the dispute process to you, the merchant, in order to reduce complications and allow you to resolve the dispute as quickly and effectively as possible.
How does CDRN Work?
1) The customer contacts their card issuer and the issuer’s system identifies you as a CDRN registered merchant
2) Verifi screens the transaction eligibility and notifies you, the merchant, about the dispute
3) You then have three options to handle the dispute
◦ Stop delivery of physical goods
◦ Process the credit transaction and halt recurring payments
◦ Take no action and risk a chargeback
4) Verifi responds to the issuer confirming the resolution of the dispute
What are the Tangible Benefits of CDRN?
The most obvious benefit is that you can stop chargebacks. CDRN can reduce your chargebacks by up to 30%. You also will always receive immediate notification regarding disputes by customers. This will allow you to identify any product or delivery issues, ensuring quality performance for your customers. Costs in time and resources will be reduced by stopping chargebacks. Finally, you will be able to protect yourself and stop fraudulent shipments before they become a loss.