As a merchant, your main concern is to cater for a variety of businesses ranging from electronics to groceries and clothing retail stores. You also look to engage in marketing, order processing, technical support, and customer service. With those responsibilities to take care of, it is no surprise that you wouldn’t want to be in the business of fighting chargebacks and fraudulent transactions.
Sadly, notifications from customer disputes often go unnoticed and become chargebacks, severely damaging a merchant’s bottom-line. Asides affecting revenue growth, merchants could lose their power to process credit card payments as a result of too many chargebacks. In some cases, these chargebacks are issues that a merchant would have been happy to resolve before they get to the banks.
Merchants with high risk of chargebacks, may be find subscribing to chargeback alerts is a great way to bypass the typical process, in such a way that the customers are satisfied, and the merchant resolves the issue in a manner that does not take a hit on their bottom-line. This means that a high risk merchant is able to address customer issues before their disputes officially become a chargeback. This way, the merchant is not penalized either by the acquiring banks or the card networks.
Here are the benefits of using a Chargeback Alert Service:
- Detect Fraud Before Losing Merchandise
Card networks often contact cardholders if they detect a potentially fraudulent transaction. Typically, merchants are only notified later if the chargeback goes through. With a Chargeback Alert service, the merchant receives notifications in real time and is often able to stop the shipment before the product gets to its location. This way, a merchant can decide to cancel the customer’s service immediately, effectively ensuring that they do not pay for any services that would not be compensated for by the customer.
- Protects Chargeback Ratio
A Chargeback Alert service allows you act in a timely manner to resolve customer disputes. A merchant will be able to avoid a chargeback altogether if he/she addresses a customer’s dispute promptly. More so, the direct and indirect costs associated with chargebacks will also be avoided.
Merchants could suffer serious consequences if their chargeback to sales ratio is above the 1% margin for a long period of time. Even if you win most of the chargebacks as a merchant, card networks still take note of them immediately they are notified of the dispute. The most effective way to protect your chargeback ratio is to stop the chargeback before they are made aware of it.
- Reduce Costs and Fees
A Chargeback Alert service can help merchants avoid chargeback costs and fees and redirect these valuable funds into productive ventures. Almost every party involved in the process – from the processing companies to acquiring banks – hit merchants with certain fees during a chargeback process. A Chargeback Alert service can help merchants intercept chargebacks and avoid responsibility for any chargeback related fees.
- Protects Customer Relationships
The importance of customers to any business can never be overemphasized. The customer plays an all-important role in the success of a business. As a result, it only makes sense that a savvy businessperson does what is necessary to protect the relationships they share with their customers. Good news is, a Chargeback Alert service can help you protect customer relationships that would have been lost to disputes.
Sometimes, customers dispute transactions when they do not understand some the details involved. Unfortunately, they may only realize when the chargeback process is well under way, at a time that is too late to issue a refund. A Chargeback Alert service allows you reach out to the customer immediately a transaction is disputed and resolve the issue in a way that makes both parties happy.
- Increased Protections For High Risk Merchant’s
Due to the nature of their industry, high risk merchants usually find it difficult to get payment processors happy to render their services. High risk industries are notorious for fraudulent transactions and chargebacks – risks that payment service providers are unwilling to take.
A Chargeback Alert service is reassuring for payment service providers in that it can help reduce a merchant’s sales to chargeback ratio and defend against fraud. This presents a huge opportunity for high risk merchants since they are now able to circumvent the frustrating chargeback process before the card network is notified.
It is safe to say, therefore, that a Chargeback Alert service can keep you in business and protect your merchant account. By being able to initiate a conversation with a customer before the card network is made aware of a dispute, you not only protect your business’ bottom-line, but preserve valuable customer relationships.