Chargebacks can hinder even the most profitable business, due to their unexpected occurrence. While high risk companies are presumed to be at a higher risk of chargebacks, they are usually charged to the merchant unannounced. The chargeback fee can also be outrageously more than the price of the actual fraudulent charge, sometimes up to 270%! While chargebacks can damage a company, there are remedies that can help you recognize chargebacks before they become an unwelcomed surprise.
Electronic payment processing open the door for merchants to reach markets worldwide, but they also come with drawbacks. One of the greater threats to your business’ bottom line are chargebacks. eMerchantBroker (EMB) has partnered with Verifi and Verifi’s new Cardholder Dispute Resolution Network (CDRN) as well as Ethoca and their alert system. By networking with both banks and card issuers, the CDRN is giving merchants something they have been lacking until now: direct control over resolving credit transaction disputes before they become one. By offering our merchants both chargeback resolution networks, they can achieve the highest rate of chargeback resolution.
Chargebacks begin when a customer files a dispute with their bank regarding a credit or debit card transaction. The problem arises when the merchant is left out of the dispute process or is informed too late. Customers are not informing the merchant of the dispute at an increasing rate. Moreover, in 58% of all instances, the merchant is never notified of the pending dispute, making them helpless and unable to defend themselves against the initial chargeback. With EMB’s chargeback insurance, you can help eliminate the unwelcomed surprise of chargebacks, as well as some of their fees.
Chargebacks are bound to happen, regardless of the type of company you operate. While it may seem like a lost cause to try to eliminate chargebacks, or lessen their fees, it is possible. While not all chargebacks are eliminated with chargeback insurance, they are lessened, and their fees are lessened, as well. Chargeback insurance is something that all merchants, high risk or not, should invest in, as it not only helps protect their company, but its customers, as well.
Protect yourself against chargebacks, Contact us today!