Get The Tools Necessary To Reduce Chargebacks
A chargeback is when an online shopper contacts the bank that issues their debit or credit card and the bank attempts to return the amount of the transaction to the cardholder. However, there are several types and scenarios of chargebacks, such as:
- The cardholder does not recognize the transaction.
- The cardholder did not authorize the transaction.
- The cardholder did not receive the goods or services they purchased.
- The cardholder affirms that the goods or services do not match what was offered.
The bank that issues the buyer’s card creates a chargeback request to the business that processed the transaction. Chargebacks are a way to protect cardholders from possible charges made without their consent. If you run a business, whether offline or online, you can take measures to reduce chargebacks.
For merchants, this type of eCommerce fraud can lead to some serious problems. Typically, this fraud involves a criminal setting up a merchant account. For the most part, it looks legitimate at first. However, they use the unauthorized credit cards to make numerous charges after setting up the merchant account with it and then take the proceeds before the cardholder is notified or realizes that there was a transaction that took place and that it was not authorized by them. If the scammer disappeared, then the funds won’t be recovered and the cardholder could be held liable for the payment and the associated fees.
Criminals are getting smarter when it comes to creating these fake identities, even creating fake documents to use as identification or verification. This could include credit reports, birth certificates, and valid ID cards. They also take advantage of the fact that it is difficult for companies to verify these merchant accounts online and determine if an imposter company is legitimate. Additionally, the schemes and level of involvement of multiple people in merchant identity fraud make these criminals even more difficult to detect and catch.
You can learn how to reduce credit card chargebacks and keep more profits and revenue in your business. The solutions for this global problem derive from an increase in the tools to verify the identity of the users, from the collaboration between the members of the ecosystem to stop in a timely manner to regulate this problem. Although (although it is true) it is possible to find a reason for this situation depending on the time, place, and space from where an internet transaction is carried out; solving this problem is key for it to detonate.