Loss-prevention specialist debuts a new alerts service to address rising chargebacks and friendly fraud in eCommerce
Rayleigh, Essex, UK. 5 April 2018 – Up to 86% of chargebacks are likely caused by fraudulent actions from consumers, and claims have increased 41% over the last two years. To help eCommerce merchants combat this rising fraud trend, leading dispute mitigation and loss prevention firm, The Chargeback Company (known as Chargebacks911 in the US), has launched a new Enriched Alerts Service.
According to co-founder and CIO, Monica Eaton-Cardone, the new amenity – now available as part of the company’s comprehensive dispute management and remediation platform – will not only reduce the onset of chargebacks but also related mitigation expenses.
The rising number of consumer disputes have made it increasingly difficult for merchants to distinguish true criminals using a consumer’s payment details – which justifies a refund – from consumers denying their own transactions – 58% of merchants have admitted to being unable to differentiate the two.
An earlier version of the technology, Chargeback Prevention Alerts, was introduced several years ago to signal transaction refunds to merchants within a designated time window, preventing chargebacks from being processed. The new enhanced alerts are the culmination of issuer feedback and proprietary loss-prevention technology, to deliver improved, data-driven results. Now, merchants can remedy fraudulent transactions with a refund, while using relevant data to address friendly fraud claims.
Eaton-Cardone notes that “an alarming percentage” of false-positive (friendly fraud) claims are being refunded via alert-type products; however, when merchants refund an alerted transaction, they forgo the opportunity to dispute the claim and recapture lost revenue. Considering 40% of customers who successfully retrieve money back from a chargeback will file another within 60 days, merchants who do not investigate potential cases of friendly fraud are likely to see their chargebacks continue to increase.
“Enriched Alerts Service helps merchants overcome challenges with false-positives, offering a more flexible approach to post-transaction chargeback prevention,” explains Eaton-Cardone. “In the past, merchants were mandated to refund alerts to avoid chargebacks. With our new Enriched Alerts Service, they now have the opportunity to prevent a chargeback through a digital remedy or cancellation confirmation.”
Eaton-Cardone continued, “Our new service arms merchants with the information they need to make better decisions, which may mean foregoing an automatic refund and pursuing alternative ways to reconcile a flagged transaction. This enhancement to our award-winning technology helps clients resolve customer disputes while greatly reducing the overall cost of chargeback prevention.”
The Chargeback Company is dedicated to educating and supporting eCommerce merchants with services designed to increase revenue, reduce chargebacks and fight fraud. It’s approach to the huge industry chargeback problem has been commended with the Customer Choice Award for Best Chargeback Management Solution at the annual CNP Awards two years in a row.
For details on the Chargeback Company’s comprehensive risk management solutions, informative articles and other merchant resources, visit http://thechargebackcompany.com/.