Beyond Fraud Headlines: 5 Chargeback Management Providers for Online Merchants

Dealing with chargebacks can be time-consuming and financially challenging for online merchants trying to build their business. If a customer is dissatisfied with a product or billed the wrong amount, they may go beyond a refund and seek a chargeback, which takes money from the business. And when the reason for the chargeback is a simple billing error or shipping delay, online businesses want to be prepared to intervene.

While online shopping can be lucrative for businesses, it can also lead to sticky chargeback situations that drain resources. Seeking help from reputable vendors to manage and petition customer claims can streamline operations and reduce chargebacks. Read on to discover five chargeback management providers for online merchants.

1. Look into Verifi’s Data-Driven Tools

A customer may receive a damaged product, or they might question the name of a business from which they made a legitimate purchase on a credit card statement. In these instances, the customer could be inclined to make a claim with their bank that results in a chargeback. Visa-owned Verifi can be a solid choice for merchants eager to limit these costly situations.

With Verifi, online businesses and banks can be alerted when the dispute process begins. This early notification enables the business to take action before the process snowballs beyond a typical refund situation. While refunds don’t generally result in penalty fees, chargebacks do.

Verifi’s Cardholder Dispute Resolution Network (CDRN) stops the dispute process for three days so the merchant can intervene. Rather than letting a problem escalate quickly, the CDRN helps buy time so the merchant can process a refund or defend themselves against a customer’s claim.

Businesses and banks can access transaction data, too, to help dissuade customers from moving forward with a dispute. Further, Verifi has an automated system to respond to select types of disputes with refunds. Working to help a customer resolve the situation earlier can help stave off chargebacks.

When businesses take advantage of these tools, they can save money and time. They’ll see a more favorable merchant chargeback rate and avoid messy customer disputes.

2. Find Guaranteed Success with Chargebacks911

Online businesses can look to Chargebacks911 as another excellent choice for dealing with chargebacks. This company uses a blend of data and dispute strategies to help companies avoid revenue loss.

Customers might file a dispute because they can’t remember signing up for a subscription to a service, for example. Or perhaps they didn’t receive a delivery or think they were charged too much. Because Chargebacks911 looks at the whole dispute lifecycle with a customer, it’s easier to pinpoint the main cause.

Chargebacks911 detects the reason for the chargeback, so merchants can understand if a simple mistake or something more sinister is to blame. The software can look for billing problems or miscommunications that might have led to an unhappy customer.

Best of all, the performance guarantee lets online merchants know that Chargebacks911 stands by its work as a company invested in fraud prevention. Chargebacks911 guarantees that the return on investment will be greater than the payment for their services. Businesses can validate the investment return, too, by reviewing win rates and other key metrics through the software’s reporting system.

Chargebacks911 integrates with lots of customer relationship management systems, as well. For businesses eager to tackle a high volume of disputes more efficiently, partnering with the right chargeback management vendor makes a lot of sense.

3. Prevent Fraud with Sift

While every company anticipates revenue loss in their business plan, they might not know how to confront it in the form of chargebacks. Sift uses a set of established rules to help mitigate customer disputes and reduce chargebacks through its platform.

Sift’s AI-powered tools use data points about customer behavior to determine whether a transaction could be fraudulent or a merchant error. Models continually update based on the latest transactions globally to ensure they’re looking for patterns indicative of fraud.

Sift’s technology scores online transactions before they’ve concluded to determine how risky they are, too. The score, which ranges from 0 to 100, helps inform whether a transaction could be fraudulent. A score closer to 100 means the scenario could be fraudulent.

As companies seek more efficient internal practices, prioritizing a chargeback management provider that uses automation for high-volume disputes is key. Sift’s automated scoring helps companies avoid manual work that can take too long to spot a high-risk situation. A risk score can be produced in less than a second.

With quick action, businesses can flag fraudulent transactions without disrupting legitimate ones. Sift recommends responses, too, and helps keep unauthorized purchases from moving forward. Ultimately, doing this work on the front end can help businesses take preventative action before their revenue takes a hit.

4. Manage Disputes with Ethoca

High chargeback rates, data breaches, and poor customer reviews are among the factors that can hurt a business’s reputation. But with Ethoca, businesses can prevent chargebacks in real time.

Many online companies can lose merchandise when a chargeback occurs after a shipment. And if the claim is actually fraudulent, the business could lose merchandise and money.

With Ethoca, however, it’s easier to keep the shipment from going out in the first place. Ethoca’s effort to send notifications at the first sign of a dispute gives merchants time to create a refund or stop a shipment. A merchant typically has one day to step in with a refund or stop the shipment.

For companies, fewer chargebacks translate to fewer penalties paid to credit card companies. After all, high chargeback rates can trigger higher fees for processing transactions. Companies benefit from Ethoca’s transparent approach to detailing transactions, too, since those details can help thwart menacing customer disputes.

5. Reduce Risks with Riskified

Online merchants can stay on top of fraud with Riskified. This AI-powered tool can keep legitimate orders on track with a more sophisticated approach to machine learning. But Riskified can also flag offenders trying to cheat the system.

Riskified provides an upfront guarantee that it can correctly identify legitimate customers. And online merchants can feel confident knowing that Riskified will cover the cost of a lost order if it turns out that the order is fraudulent.

Riskified’s tools can make sure legitimate customers don’t get flagged for typos or other insignificant issues. After all, sometimes something as simple as a customer making a larger order or using a new phone can trigger automated systems.

If there is a real dispute that escalates, though, Riskified can take care of the paperwork. A careful approach helps provide a good customer experience while keeping a company’s revenue secure.

Select the Best Chargeback Management Provider

When an online merchant wants to retain more revenue and avoid fraudulent claims, it needs help from a sophisticated and comprehensive chargeback management provider. The right platform will integrate easily with existing software and screen customer transactions. Some companies prioritize fraud prevention and dispute management tools that can help online businesses maintain a better chargeback rate.

Online merchants should consider the volume of claims they encounter, as well as the amount of manual labor required to resolve them. They should also look for a vendor that uses data actively in communicating the latest activity. With help from a qualified platform, online businesses can keep chargebacks under control so they keep more of their revenue.