This “Maxpay in media” blog post is special, as it is dedicated to our very first article written for Forbes Finance Council by Maxpay’s CEO Artem Tymoshenko. The article “Four tips for preventing chargebacks” explores the ways merchants can manage and prevent transaction disputes – whether by doing it themselves or seeking professional help.
We highly recommend you check out the original article, as in this blog, we will elaborate on the main insights our CEO voiced in it.
Do not exclude merchants’ input in chargeback protection
Companies’ responsibility goes beyond the products and services they provide. They also should make sure their websites are built up and arranged in a way to reduce potential disputes.
What we mean is that you should provide your customers with as much information about the products as possible, so they wouldn’t have a reason to be disappointed with the result after getting the purchase. The same naturally goes for quality control.
Clear descriptions aside, the delivery is another crucial factor in ensuring the clients are happy with your services. You either find a reliable delivery service, or ship the products yourself, but it is vital to give customers the ability to track it so they won’t cancel the purchase prematurely.
And to avoid fraudulent transactions, we recommend businesses use 3D Secure 2.0 (which a requirement if you are operating within the EU) for double verification of a cardholder. Find out more about 3D Secure and other tools for online payment security in this article.
Use the tools from experienced professionals in the industry
Over the years fraudsters and hackers have come up with more tech-savvy ways to steal customers’ data and money, and not all merchants can keep up with it.
Hence, we recommend you get help from companies that deal with chargeback and fraud mitigation or find a financial institution, that already works with said businesses. For instance, we at Maxpay not only provides easy-to-operate online merchant accounts, but offers services of Covery anti-fraud platform, VMPI solution, and Ethoca Alerts.
We’ve discussed their benefits in the blog posts linked above, but in short:
- Covery specializes in fraud protection and risk management. Its tools allow the payments, payouts, and refund checking, the velocity rules for creating static and dynamic limits for the card, user, device, etc., and access to Trustchain, which is a collaborative reputation network that helps in bot detection.
- Visa Merchant Purchase Inquiry (VMPI) is a solution, which can be used to detect friendly fraud. Using it, an issuing bank contacts the merchant in near-real-time after a customer requests a transaction dispute. Thanks to this, the merchant can gather evidence that the transaction was valid and send it back to the issuer. The latter can then determine that the transaction dispute wasn’t necessary, and the company will avoid the chargeback.
- Ethoca Alerts is a service that alarms merchants about chargebacks. If an issuer is a part of Ethoca’s global network, it will almost instantly notify a merchant about cardholder confirmed fraud, allowing the company to issue a refund and cancel the shipment of products.
As you can see, all the services listed offer their unique ways to fight chargebacks and fraud, and you can choose the one that works for you. At the end of the day, we at Maxpay believe that the combination of merchants’ dedication and tools the experts provide is a perfect match to reduce the chargeback problem significantly.