The cost of chargebacks goes beyond lost sales—it damages your reputation and risks your merchant account. Protect your business with AVP Solutions’ advanced chargeback protection program to prevent fraud and resolve disputes.
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Chargeback Prevention and Fraud Protection
Chargebacks, also known as reversals, are disputed transactions by consumers. Created as a form of consumer protection, chargebacks gives consumers a peace of mind from unauthorized or fraudulent transactions. When a complaint is made, the bank refunds the original amount to the consumer. Unless the merchant can prove that the transaction is legitimate, the merchant lose not only products or services that have already been sold, as well as payment and fees incurred for processing the transaction, but also money from chargeback penalties.
This can be caused from errors in merchant account set-up, confusing terms and conditions, transactions, and/or order processing.
These chargebacks are caused by the client intending to steal, or be dishonest, and be deceitful with by the client. The clients keep your products or use your services and use the chargeback process to obtain a refund on the entire amount, essentially similar to shoplifting.
Some clients have no ill-intentions regarding processing chargebacks. This can be caused from miscommunication, confusion about the product, and/or slip from memory.
Credit card issuing banks take chargebacks seriously. Having more than 1 percent of your charges reversed as chargebacks can get a business labeled as fraudulent. Not only can this damage your business’ image but can also result in loss of clients and revenue.
Chargebacks have both short and long-term effects on any merchant. When a chargeback is filed, clients get refunded and get to keep the goods while merchants lose revenue and potential profit. Merchants are also charged fees with every chargeback even if they are later cancelled.
Chargebacks also increase the cost of doing business from increased processing fee rates to terminated merchant accounts that could result in inability to process credit card payments up to five years. Having a chargeback protection program is a necessity, not a desire.
Chargeback ratio, also known as the chargeback-to-transaction ratio, can be calculated by dividing the number of chargebacks with the total number of transactions. Here’s how:
Seamless and secure online payment processing ensures businesses can accept payments effortlessly while providing a smooth customer experience across all digital platforms.
Reliable, fast, and secure transaction processing enables smooth and efficient point-of-sale operations for every purchase.
Tailored payment processing solutions reduce the risk of chargebacks and fraud while maintaining compliance and security for high-risk industries.
AVPS, LLC is a registered ISO/MSP of Central Bank of St. Louis, Clayton, MO
American Verification Processing Solutions, LLC., is a registered TPA (Visa) and SP (Mastercard) with SSB Bank
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