We know it cost you an arm and a leg to launch your ecommerce business. And since you have invested a “large” part of your savings in this company, you want it to succeed at any cost. Still, your efforts don’t seem to work wonders because of the unexpected issues which keep emerging from your potential customers. One such problem that might be holding you back from growing as the most sought-after shopping platform on the web is “ecommerce chargebacks.” It doesn’t matter how hard “efforts” you put to generate “huge” profits and deliver a superb customer experience; some malicious actors and unscrupulous buyers will still drive massive financial losses to your brand. So, a crucial question surfaces here: how to deal with eCommerce chargebacks and boost your bank balance for future expansion? Well, it will help if you buy chargeback fraud management solutions from the most trusted fraud and risk management company in the USA.
If you don’t know how the chargeback fraud management solutions can benefit your business, don’t worry; we will explain. But, let’s understand first:
What is Ecommerce Chargeback?
You can interpret Ecommerce Chargeback as an electronic transaction made on a shopping site, i.e., under dispute by the customer. They usually claim that the payment made online using their credit card is invalid. So, the card issuer returns their money and charges the retailer. Thus, it results in lost revenue and additional fee payment by e-commerce stores, leading to “reduced income” and increased stress.
Now that you know the definition of ecommerce chargeback, it’s time to delve deep into chargeback fraud management:
So, what are Chargeback Fraud Management and its benefits?
You can perceive Chargeback Fraud Management as a process of recovering the “lost revenue” to chargebacks and reviewing the entire data and payment journey to prevent further chargebacks from occurring.
Once you have bought a reliable chargeback management solution from a prominent fraud prevention service provider, it will allow you to leverage:
- More secure transactions
- Higher customer retention
- Improved satisfaction
How do Ecommerce Chargebacks take place?
Firstly, you need to understand that a chargeback involves three different parties, i.e.,
- The Customer
- The Retailer, and
- The Processing Bank
When consumers find that the online payment carried out on a particular ecommerce site by their card is not correct, they report a chargeback to their credit card provider. Post that, the bank or other financial organization returns the disputed payment to the buyer. Then, the bank gets in touch with the concerned retailer to figure out if the disputed transaction was correctly handled or not.
Now the next question arises, what should you do in this case? “To be frank,” when the bank approaches you with a chargeback dispute, the first move you should make as an accountable retailer is to provide them the details of the transaction to make them believe why you approved the transaction. Next, the bank will let you know the reason for the chargeback and ask for a valid response from you.
Since they provide a “very” short time to reply and justify the payment, you might fail to prevent your economic losses. And that’s where having a supreme-quality chargeback management system can help. It will protect you against common chargeback scams effectively and help you manage future disputes with ease. Thus, it will translate into saving your lost revenue down the road and enable you to approve more genuine orders.
Why must premier eCommerce owners get Chargeback Fraud Management solutions?
It’s because an excellent chargeback management system protects you from various types of incidents leading to ecommerce chargebacks. Some of them are:
- Returns and cancelled transactions
Though most of the time, the chargebacks are valid and justified, they still affect your revenue and your customer’s experience as well.
- Miscommunication or lack of clarity
There are instances when your buyers don’t get all the information about a product while ordering it online, whether due to the unavailability of a service representative or an incomplete product description. So, they file chargebacks very often because of not providing “sufficient” information upfront.
- Fulfilment issues
In some cases, when shoppers are not satisfied with the shipping, delivery, or your product’s experience, they may request a chargeback.
- Affiliate fraud
Sometimes, the affiliate marketers with malicious intent are also the reason for multiple fraudulent transactions. It’s because they do it knowingly and cash out even before the ecommerce sites become aware of it.
- Authorization and processing issues
It could occur on your “end” or the firm that processes your payment, resulting in a “considerable” impact on both parties’ bottom line.
We hope you learned myriads of things in this blog post, be it the definition of eCommerce chargebacks, chargeback frauds management, or the reasons to get such solutions. So, if you liked this piece of content and want to stop your chargeback scams straight away, please speak to the widely-popular fraud prevention service provider in the USA.