subject: Getting Out Of Chargeback Troubles in 60-Days or Less [print this page] Getting Out Of Chargeback Troubles in 60-Days or Less
Online merchants know the challenges and costs of managing fraud and risk. One of the biggest challenges of accepting payments online is effectively controlling chargebacks.
All merchants assume a certain level of risk and exposure when accepting internet payments, but chargebacks can be costly when ignored.
Beyond traditional bad transactions' or refunds', chargebacks are often a result of more serious issues affecting your business such as networks of organized criminals, affiliate fraud orfriendly fraud. In all cases, losses are expensive and should be properly managed as part of your payment strategy.
Chargeback management is the ability to maintain acceptable levels of that exposure. Most merchants balance the decision to accept riskier transactions as part of their business strategy. Saying no' to too many transactions can be bad business and create a bad customer experience. By the same token, saying yes' to the wrong orders can be even riskier, especially when there is fraud involved.
Excessive fraud costs a business more than lost goods sold or missed revenue. If a merchant exceeds acceptable levels of chargebacks, penalties can be assessed by the associations such as MasterCard or Visa when a merchant exceeds the acceptable 1 percent level of chargebacks for an extended period of time.
When left unchecked, high chargeback rates can quickly grow out of control and present serious financial and operational challenges. If a merchant doesn't comply in a timely manner, they risk losing their merchant account and the ability to accept electronic payments online. In some cases, penalties assessed to merchants can reach the six-figure range until problems are corrected and proper processes are put into place.
According to Don Bush, Marketing Director at the fraud prevention company Kount "we have helped companies who were suffering over 1 percent chargebacks and getting fined over $100,000 a month. This has a big impact on a merchants' bottom line each month."
Having a good fraud prevention solution in place is like having an insurance policy; you hope you never need to rely on it, but rest easier knowing its' there. Fraud prevention may not always seem like the highest priority, but when you suffer a targeted attack and see the losses and penalties add up, you know it a worthwhile investment for your business.
Most business' that experience high losses and penalties as a result of fraud understand that having a robust fraud management solution in place is a preemptive measure to safe and secure business operations. Enterprise fraud prevention companies such as Kount help ecommerce merchants stop fraud in its tracks.
If you are an ecommerce merchant, having an enterprise level fraud management solution does not have to be expensive. Software-as-a-service (SaaS)solutions offer an affordable and scalable alternative to expensive in-house or home-grown platforms. These solutions can be used to manage your fraud on a daily basis, or if fraud strikes, help get your losses under control and your program back into compliance.
Getting fraud related penalties and losses under control can be a time consuming and expensive distraction from normal business practices. Kount offers a 60-day program called Kount Complete that sifts through thousands of transactions to pinpoint the bad transactions within a matter of seconds. From there, they work with their clients to put the procedures and systems in place to get excessive chargebacks under control.
"We help internet merchants suffering high losses and penalties regain control, increase operational efficiencies and get compliant within 60 days so merchant can focus on growth, not fraud," says Bush.
To find out more about the Kount Complete 60-day chargeback program, check out their website @ kount.com or visit theironline booth at PaymentsMarket.com.
