You may have heard the term charge backs while researching for your high-risk merchant account.
A charge back is a reversal on a sale that is forced by the cardholder’s bank.
Charge backs protect customers from dishonest merchants, but they can also harm your trusted business.
The risk of a charge back 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.
Charge backs 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 charge backs.
Many industries have been deemed high risk by merchant providers due to an excessive number of charge backs.
If your company is in a high-risk industry, you’ll need to be prepared for charge back problems.
You will need to have a high-risk merchant account if you plan on accepting online or credit card payments.
A high-risk merchant account provides a reliable payment gateway for all types of high-risk industries.
An excessive number of charge backs 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 charge backs as much as possible.
Not all high-risk merchant providers are created equal.
Many provide a wide range of services that will make your business safer.
Charge back prevention and management services can help reduce the number of charge backs your business has.
Charge back prevention can cover your losses related to unauthorized credit card transactions.
Charge back prevention can be used to recover the loss of profit from theft or fraud.
Charge back management will not cover you from all charge backs.
If a client fails to receive a shipped product you will still be responsible for the charge back.
Charge back prevention and management will not cover mistakes either.
Even though charge back management services do not cover all refunds, it can still be an essential service to add to your high-risk merchant account.
eCommerce has an extensive history of charge backs.
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.
This is normally covered under charge back prevention services.
If most of your charge backs are from customers saying they never received their products, you would not be covered.
Charge back prevention and management services can help reduce the risk involved in running an online business.
While charge back prevention won’t improve your charge back ratio, it can help you recoup some money lost due to the 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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