Chargeback management has become part and parcel of conducting business. As it becomes easier for customers to dispute charges, and with banks usually siding with customers, it is essential to take proactive and preventative measures so that illegitimate chargebacks do not cut into your bottom line.
When you receive a chargeback notification, it is not a done-deal situation. There are still some specific measures that you can take to disprove the dispute:
1. Will they meet my particular business’ needs?
When it comes to payments, business size, industry and personal preferences create unique needs for every merchant. For example, a restaurant’s processing needs are not at all comparable to those of a school or nonprofit. Make sure that your payment services provider is knowledgeable about and has experience in your particular field. An experienced provider will be able to advise you on the optimal setup that will lower your costs and increase your business efficiency.
Subscription commerce has recently demonstrated significant growth, as consumers have embraced the convenience and efficiency that subscriptions deliver. Companies and shareholders love it too, because it ensures repeat customers on a regular basis, without the necessity and hassle of pitching and closing a new sale each time.
Some companies will replenish customers’ supply of a particular product, such as the Dollar Shave Club. Others attempt to delight and surprise their customers with a new and unique selection, such as Birchbox. But it is not a new phenomenon; magazine companies, nonprofits, and phone companies have long found great success using the subscription billing model.
Unfortunately, it can be complicated for subscription-based companies to obtain processing for a merchant account, and even once set up the overhead cost and efforts can be staggering. Subscription services are considered “high risk” processing accounts because they present an increased chance of chargebacks for the following three reasons:
As a merchant, you will often accept payments in a foreign currency. For example, a retail store may swipe an international card if a tourist makes a purchase, or an e-commerce site may accept orders placed by a customer from another country.
Whenever a foreign transaction occurs, there is always a surcharge. The difference lies in which party is responsible for paying that fee, and that depends on the way that the merchant account was set up.
Merchants have the challenge of balancing their day-to-day business needs while simultaneously maintaining a focus on growth and expansion. The more that business owners and operators, especially those in the service and nonprofit industries, can reduce their overhead burden the more likely they are to succeed as innovators and changemakers.
While payments are no doubt central to any business, they also have the potential to take a considerable toll. Merchants need to prioritize a variety of objectives: data security, payment and billing management and fraud prevention. Merchants in the service industry will want to ensure that payments are secure while remaining convenient and low-cost.
The solution is for merchants to outsource their payments acceptance. It comes in the form of a Fidelity-hosted payment form which performs all the essential functions and more in an automated and secure fashion.
The forms have the option of being embedded on the merchant’s website or coming up as a pop-up window; both of which outperform the other solutions on the market on five fronts:
If you’re in the e-commerce industry, brace yourself for some serious fraud this holiday season. With Black Friday coming up soon, the holiday shopping rush is just beginning and it’s the prime time of attack for online fraudsters and chargebacks.
ACI Worldwide predicts that US retailers will see a 43 percent increase in online fraud this holiday season, compared to last year.
Fraud has escalated this year to nearly $22 billion in losses globally. In other words, for every $100 spent, 6.97 cents was fraudulent, compared to 6.21 cents the year before. The Nilson Report, the top newsletter covering the payment industries, put together the specific fraud metrics.
According to their report, if the global fraud rate was a pie, the US has the largest slice. The United States alone accounted for nearly 40 percent of the gross fraud losses, even though they only generated 22.9 percent of global purchase volume. Simply put, for every $100 spent in the US last year, 11.76 cents was fraudulent.
If you’re processing credit cards, you’ve most likely heard of PCI compliance. What is it and how do you become compliant? We’ll walk you through it.
What is PCI?
The Payment Card Industry Security Standard is a set of guidelines that protect merchant and cardholder security. If a merchant intends to accept card payments, the data must be hosted securely with an approved provider.
Online merchants become more at-risk for online fraud each year, making fraud detection and prevention a vital component of successful business.
The average number of successful fraudulent transactions grew 32.1% in 2015, with retailers reporting an average of 206 fraudulent transactions per month compared to 156 in 2014. Retailer’s prevention efforts simply aren’t keeping up with the growth in fraud.
What most merchants don’t know is that there are some powerful tools that come with most payment gateways. These tools can be used to gather information about an order to make an informed decision about whether or not to process the payment and ship an orders that may be potentially fraudulent.