What are Charge Backs and Secure high-risk merchant account?
- You may have heard the term chargebacks while researching for your high-risk merchant account.
- A chargeback is a reversal on a sale that is forced by the cardholder’s bank.
- Chargebacks protect customers from dishonest merchants, but they can also harm your trusted business.
- The risk of a chargeback helps merchants stay focused on delivering quality products and services.
- It will deter a shop from selling poor products and will also ensure the merchant delivers on their promise.
- Chargebacks also help reduce the risk of criminal fraud for the consumer.
- Data breaches and stolen identities are a huge problem and often result in many chargebacks.
- Many industries have been deemed high risk by merchant providers due to an excessive number of chargebacks.
- If your company is in a high-risk industry, you’ll need to be prepared for chargeback problems.
- You will need to have a high-risk merchant account if you plan on accepting online or credit card payments.
- Moreover, a high-risk merchant account provides a reliable payment gateway for all types of high-risk industries.
- An excessive number of chargebacks could cause your rates and fees to increase or for your provider to cancel your contract.
- As a business owner, you should take steps to avoid chargebacks as much as possible.
Chargeback Prevention and Management Services
- Not all high-risk merchant providers are created equal.
- Many provide a wide range of services that will make your business safer.
- Chargeback prevention and management services can help reduce the number of chargebacks your business has.
- Chargeback prevention can cover your losses related to unauthorized credit card transactions.
- Also, it can cover the loss of profit from theft or fraud.
- Chargeback management will not cover you from all chargebacks.
- If a client fails to receive a shipped product you will still be responsible for the chargeback.
- Chargeback prevention and management will not cover mistakes either.
- Even though charge-back management services do not cover all refunds, they can still be an essential service to add to your high-risk merchant account.
Chargeback Prevention and eCommerce
- E-Commerce has an extensive history of chargebacks.
- Fraudulent purchases are common on eCommerce websites.
- You’ll need a way to protect your business.
- Valid fraud is a common problem and involves a purchase made with a credit card without the owner’s consent.
- Normally, this comes under chargeback prevention services.
- If most of your chargebacks are from customers saying they never received their products, you would not be covered.
Does my Company Need to Chargeback Prevention Services?
- Chargeback prevention and management services can help reduce the risk involved in running an online business.
- While chargeback prevention won’t improve your chargeback ratio, it can help you recoup some money lost due to fraudulent transactions.
- Most high-risk merchant account providers offer chargeback prevention and chargeback management services and can include them in your package.
- Your merchant can stay on top of the problem and help reduce the costs involved with chargebacks.
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