
Advanced chargeback reduction techniques
If your business inherently receives more chargebacks than normal, you may need to employ advanced mitigation techniques. Let our industry experts review your needs.
We discuss the general practice of keeping your chargeback ratios low on this page. But for some merchants, the "basics" just aren't enough, and you'll need to make some additional pivots to ensure that you are both protecting yourselves, and staying in the card associations' good graces. Here are some common techniques that merchants will employ when dealing with high chargeback ratios or challenging fraud attacks:
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Implementing digital tools on their website to combat fraud. Particularly if you're capturing sensitive payment data on your website, there are several different tools at your disposal. The easiest is a "captcha" which forces your user to complete a puzzle/test (stopping bots). Many shopping carts will allow for complex IP address blocking based on known suspect ranges and countries. Implementing "auto-decline" responses for any mismatch of AVS, CVV, or shipping/billing addresses.
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Increasing customer communication, and possibly providing scripts to agents to ensure they're following all rules and outlining all upcoming costs/schedules. If your service-business is receiving chargebacks related to the "goods services not delivered" category, that indicates that your employees may not be properly explaining cost schedules or payment terms. It's vital that you communicate with your customers so there are no surprises. Sometimes, going down this rabbit hole will uncover unscrupulous sales practices - which is exactly what Visa/MasterCard want to avoid.
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Changing internal protocols to more quickly focus on potentially fraudulent or problem orders can help prevent fulfillment of the order. Often times, merchants are stuck in a "too late" situation. They received notice of fraud, but they've already fulfilled the order and taken payment. Having internal fraud protocols and report reviews can quickly locate potential problems first so that your business isn't reacting to fraud, but is instead simply avoiding it.
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Hiring an external chargeback mitigation firm to professionally respond to chargebacks on behalf of the business. Sometimes, the burden of chargeback management becomes to heavy to bear. There are several reputable firms that actively handle customer communications, documentation requests, and even chargeback insurance. Let us know if this is something you're interested in.
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