There are many reasons why a merchant might get a chargeback request. In some cases, there is an issue with the product, and the client can return it or just get their money back. But there might also be fraudsters. It is challenging to monitor when chargebacks appear and stop them in time by yourself. That’s why chargeback alerts have been created. Read more about them below.
Chargebacks: What Are They?
Chargebacks are the popular ways to get the payment back if you can dispute it. The customer can get them outright or through the bank. It doesn’t matter how the client has made the payment. The chargeback can be returned to both debit and credit cards.
It usually takes several days to confirm the chargeback because it goes through several entities. But there are still situations when fraudsters can attack. Also, chargebacks can be requested when there are technical problems with your site or payment system. One solution to avoid them is to improve your service reliability and add chargeback protection. So, you might consider the chargeback prevention alerts.
Do Prevention Alerts Forestall Chargebacks?
A standard chargeback goes from the client to the issuing bank, then to the acquiring bank, and finally to the merchant. In this case, you will have a small chance to dispute the chargeback. However, not with the prevention alerts.
So, how do they actually work? Despite sending the chargeback request to the issuing bank, they check it using the data about your business chargeback statistics and then send it to you. In the end, you get the analyzed information, which you can confirm or dispute. You can also resolve the customer issue so that they are more satisfied. And that’s not all. With the prevention alert, you get the analysis of the chargeback all the time. Moreover, you can see which issues become the reasons for clients to ask for their money back. Thanks to this, you may solve this problem before the customer gets their product.
How to Set Prevention Alerts Up?
Prevention alerts can be installed on your device in a short time using the platforms nowadays. Some instruments connect to the merchant database and analyze the chargeback history for higher efficiency. The most common prevention alerts are Ethoca and VMPI. They have quite similar working principles, but they differ a little in the features list.
If you use Ethoca, it sends you the customer request from the issuing bank, and you can solve it before the bank confirms the chargeback. That means your chargeback statistics aren’t affected. Ethoca prevention alerts have ready-made integration. You don’t need a third party to install it.
The VMPI instrument will also send you the request from the customer, but it uses the VISA Resolve Online service. It also analyzes each request and informs the merchant of the statistics. The chargeback number decreases several times with this alert. Both Ethoca and VMPI have fraud detectors that give a higher protection level to your business.
You can find these alerts on various platforms, one of which is Covery.ai. There are both Ethoca and VMPI chargeback protection alerts with all standard features. You can compare and see which one is more suitable for your business. After that, you can apply for getting the prevention alert and benefit from having fewer chargebacks.
The chargeback prevention alerts do really work, as they help reduce the numbers of fraudulent chargebacks significantly. However, you also should analyze the data and statistics, cooperate with your clients, and improve the process in general. Therefore, you will see a much better result even in a short time.