Chargeback Alert solutions for Merchants and Payment processing companies. Increase your Profit by Reducing Fraud. Chargeback Alerts and Notifications can help you to extend the life of your Merchant account and MID. Highly Scalable and easy to integrate solution.
Chargeback is a special buyer protection feature offered by Card brands. Sometimes this feature can create challenges for genuine Merchants. There can be multiple reasons for disputes including friendly chargebacks. The Card brand handles every dispute with a reason code. Cardholders call the card issuer to raise the dispute. The Card Issuer or the Bank recommends the cardholder to talk to the merchant first.
In case if the Cardholder insists then the bank initiates a Chargeback Case. It sends the request to the merchant acquirer. Merchant then receives a notice and guidelines to prove his case in a fixed time frame. Merchant acquirer sends all the evidence to the card issuing bank or sometimes to the card brand. After analyzing all the evidence the card issuer/ Card Brand gives the verdict. With Chargeback Alerts merchants get information in near real-time after the cardholder contacts the card issuer. This gives the merchant a window of opportunity to stop the shipment, Initiate the refund or Retain the customer.
Quadrapay is a fast growing merchant services company located in india. Being Strategically located in Asia we have an edge to cater to the needs of various companies and businesses located in adjoining nations. Our deep alliances with Payment service providers in USA, EU and Asia gives us an edge over other companies in our field.
It is a reversal that is initiated by the card issuer in case of various issues including fraud transaction, Product services not received or product /service not as per the commitment of the merchant. There are many other reasons that can create a Chargeback.
Credit Card Fraud and how Chargeback Alerts Can Help.
There is a very clear correlation between Fraud and Chargebacks. After every fraud transaction, the merchant attracts the risk of getting a corresponding chargeback. Fraudsters don’t have to worry about refund request. Merchants must put in place chargeback notification and alert services to avoid financial losses. By using Near Real Time Chargeback Alerts merchants and Payment processing companies can avoid massive financial losses. Businesses can prevent shipping items that are ordered by using fraudulent transactions.
There is absolutely no cost to start this service. You can get a Chargeback Notification and alert account at zero setup cost. The only cost involved is the per alert cost. You pay per notification received. Once you get the notification then you can contact the cardholder and try to resolve the issue. If the cardholder wants a refund then feel free to initiate the same and share the cardholders approval and refund proof to the chargeback alert service provider. This can be highly effective if your customer base is in USA, Canada, UK, Australia and other developed nations.
Soon this solution will be highly available in the developing nations in Asian, African, and Latam regions. The Setup and Integration process of the Chargeback Notification and Alert system is very simple and easy.
Why Chargebacks appear on credit card transactions
Chargebacks can appear anytime. It is extremely vital for any merchant to get alerts and notifications as soon as any fraud or dispute appears. Merchants should avoid to capture the transactions before the product or services are delivered or shipped to the buyer. Many Payment Processors offer the Pre-Authorisation facility that can be used to hold the transactions until the time the buyer receives the product. E-commerce merchants should be extra cautious about fraud as they face double risk and that is the product cost and the shipping charges.
It is vital for every merchant to detect fraud and reduce chargebacks. Return, Refund & Chargeback ratio can create a negative impact on your processing history. By using notification services merchants can convert disputes into sales. We are sure that you know that there is no chargeback free payment gateway or Merchant Account.
To reduce your loss and increase profit ask us for a Free Chargeback Analysis report. Stay ahead in the game by eliminating fraud. No one wants to process sales that are executed by using stolen credit cards. Fraudsters want to do this every time. The best way is to get a notification from the card issuer in near real time. Dispute minimisation is a complex process. With the chargeback alert services, it’s a lot simpler for merchants and Payment Service Providers.
Chargeback and Fraud are the terrifying words of any Payment processor. They are Taboo in the payments industry. Alerts can help you to keep your merchant account in good standing. It can be very effective in helping you to maintain a lower Chargeback to sales ratio. High Risk Merchants and Merchants with High Ticket Sales must use this solution.
Swift Integration – Nothing Needs to be done on your website. The tech and the training team offers complete guidance. Once the tech team gets the descriptors they can easily setup your account. Training team will help you to understand various features available on the dashboard. Our Chargeback alert solution is powered by a Ethoca. The network is connected with multiple card issuers across United Sates, United Kingdom, Australia, Canada and many other nations.
There is no cost to start with the notification service. Merchants only pay a fixed amount per alert. Setup and Integration takes less than a few business days. All we need is the filled Application form and the list of descriptors to get you started. If you are interested in preventing chargebacks then this solution is a must have.
With a massive network of participating card issuers you can expect better percentage of alerts. Merchants are using chargeback alert services in nations like Canada, United States, UK, Australia and many other nations. These alerts directly create an impact on the earnings of your company. You do not want your products to be delivered to fraudsters. Start Getting Chargeback Notification and Alerts Now
Get this robust solution at Zero Setup Cost. Only Pay for Each Alert.
Start getting Near real-time alerts and increase your profit. Convert disputes into retentions. Extend the life of your merchant account by reducing fraud and chargeback ratio.
In case if you have multiple Merchant accounts then you can monitor alerts for all MIDS on a single control panel. Yes, it’s so easy. The Chargeback Alerts can extend the life and reputation of your merchant account.
Offer Alerts to your merchants and help them extend the life of their merchant account. Extend the life of your MIDs by implementing the solution at the gateway level. Contact us for more info.
Merchant service resellers can add extra revenue by offering the alert solution to their merchants. If your Merchant’s Processing account lasts for a long time it means you get the returns and commissions for a longer time.
Payment Service Providers and Merchant Acquirers can easily reduce the overall return and chargeback ratio by using CB alerts. This can also work as a shield for the MIDS. No PSP wants to burn their MIDs. PSP’s may charge the merchants for Predispute Alerts Separately.
With a better defence against fraud the PSPs can diversify the portfolio by on-boarding few High Risk Merchants. This can help the PSPs to earn more basis points markup on select merchants. Payment Service providers that are struggling in terms of MID stability must may also evaluate the options.
You get the notification in near real time and then you may issue a refund or retain the customer. If sure about winning chargeback then represent the proofs to the merchant acquirer. The below mentioned steps will help you to understand the alerts process flow.
Step 1 : Card Holder Calls the Card Issuer. Card Issuer creates a case.
Step 2 : The Chargeback Alert company gets case information from the card issuer
Step 3 : Alert is issued by the Alerts company to the Merchant with expected turnaround time for response
Step 4 : Merchant Notifies the Chargeback notification company about the resolution. The merchant sends the proof of Refund, Retention to alerts company.
Step 5 : Chargeback Alerts company send the information to the card issuer.
Disclaimer:- The reason code explanations are for information only should never be considered accurate. For a Detailed and accurate information about all reason codes vist the website of Credit Card or Debit Card Brand .
Reason Code 30
Product or Service Not Received. This code may also be implemented in case if the order was canceled by the buyer because of delay in product or service delivery.
Reason Code 41
Cancelled Recurring Transaction. This code means that the cardholder declined recurring transaction still the card was charged. Sometimes this may also be triggered if the cardholder is not informed in advance of the deduction. The Transaction was of a higher value than the one approved by the buyer.
Reason Code 53
Product or Service Received but of Inferior or Bad Quality. Product Not Genuine/Replica/Counterfeit.
Reason Code 57
Many Fraud Transactions on the same card. The Card Holder approved a single transaction but was billed many times.
Reason Code 62
Unauthorized Transaction – Card Holder Never Approved the Transaction.
Reason Code 71
Declined Authorization – The Merchant tried alternative ways to get the transaction approved after the initial transaction response got declined.
Reason Code 73
Card Not Valid as the Date of Expiry is not in future. Card Charged was expired at the Time of Charging.Most of the times this may appear when the merchant processes the transactions without getting Authorisation. Or Transaction done in offline mode.
Reason Code 74
Late Presentment of the Transaction Authorisation. Merchant submitted the transaction receipt after 180 Days from the time of Card Charging. Card Account closed within the days of actual charging and depositing of transaction receipt to the acquirer by the merchant.
Reason Code 75
Transaction Not Recognized by the Card Holder. Card Holder does not recognize the transaction or any of its element. These elements may be the amount, Transaction Date and Descriptor. Some of these chargebacks can be friendly chargebacks. But a very small percentage.
Reason Code 82
Duplicate transactions done. The Merchant made multiple transactions on the same card.
The chargeback reason code 53 is a very common reason code. This simply means that the product or service is defective or not as per the commitment of the merchant. The cardholder can call the bank or the card issuer to raise a dispute. This is done in case if the product or service is not as per the commitment of the merchant. Most of the times the credit card issuer will intimate the cardholder to try to inform the merchant about the dispute or issue first. Once the customer has informed the merchant but has not received any satisfying response then the customer can contact the card issuer again. This time the card issuer will initiate a chargeback case request for the reason code 53. The Card Scheme or Card Brand designates the reason code after initial analysis.
Prerequisites for Chargeback Reason Code 53.
The customer must have concrete evidence that clearly shows the customer contacting the merchant to find a solution. This may be a written or electronic document that shows the customer requesting a product Return, Money Refund or Product Exchange.
Why the Chargeback Reason Code 53 appears? Reasons and Defence.
There can be many reasons behind this kind of chargeback we will try to discuss most of them here. You will also find the defense suggestions that may help you to avoid these chargebacks.
Product not as per the specifications mentioned by the merchant at the time of the order placement. Merchants should try to put enough detailed information on the product info page. High-resolution pictures should be available on the product page.
Defense – If the merchant is sure about the product is exactly the same as represented on the website then merchant should send the proof of delivery and documentary evidence to prove the precise quality.
Product Variation not the same. For example, a customer ordered Red Glasses but did receive Blue Glasses. Inventory management and proper Supply chain management can reduce these kinds of issues. Before shipping make sure you match the order with the item being shipped. also match variation in size, color etc.
Defense – Understand the issue. Initiate a refund if the customer is not ok with RMA. If the customer is ok with RMA then recall old shipment and immediately ship new shipment without any errors. Take customers confirmation on email.
Product Size different. For Example. The Customer ordered a large shirt but did receive small. Double check what is being shipped.
Defense – Identify the issue and educate the customer about possible resolutions. refund or reshipment with the recall of the previous shipment.
Product not genuine. Never ship products that are a replica or counterfeit.
Defense – If you are sure the product is genuine then share the information about the source of the product, Serial number info or any other information that may help the card issuer or card brand to trust you.
Shipped to a wrong location. Sometimes because of human error, this can happen. It’s a good idea to confirm the shipping address by sending a confirmation email to the customer with the shipping address on it.
Apologize and collect the correct address of the email. Ask the customer to initiate an RMA case . Keep everything documented. Recall the merchandise and reship to the correct location. Issue refund if the customer insists.
The product does not solve the purpose. This is rare but may happen. It will be easy to understand with an example. A merchant sells mobile phone chargers. The charger shipped claims to work properly with a specific model of mobile. When the customer got the product the charger is not compatible with the phone but is in a live state.
Defense – Issue Refund or reship and initiate RMA.
Damaged Product. The product received is damaged. Make sure your shipping partner is reliable and offers safe delivery.
Defense – Initiate Refund or Reship as per customers wish. Do not push the buyer.
Dead On Arrival. Manufacturing Defect. Customer claims that the product was faulty and never worked. This may happen with electronics, Electrical or Mechanical items.
Initiate Refund or reship after initiating RMA for the faulty product.
Both the Product and Packaging have tampered. Customers do not like to use the products if they see the packaging has tampered.
Defense – Try to convince the customer is the product is not damaged. Sometimes people may understand. In case if the product is also damaged then offer refund or reshipment.
The product of inferior quality than claimed on the website. Make sure you don’t compromise on the quality of the product and only ship what you claim to sell.
Defense – Never sell inferior products. Only show what you ship. If you are sure about the quality of the product then fight the case and share the POD with the documents of the source of the product. This may be the bulk invoice from the product manufacturer or stockist. You may also show electronic evidence that may show the serial number of the product is genuine. many computer manufacturers offer this feature.
Service not prompt or not delivered as committed. In a scenario where the customer pays for service make sure you make the service available as per the SLA or Service level agreement.
Defense – Apologize and try to retain. If it doesn’t work then issue a refund.
Fight if you have documentary pieces of evidence to show that the customer is lying and has received the services with satisfaction. Use regular surveys and feedbacks to make your case strong.
Fake or Replica Item shipped by the merchant. If you have done that then you may be in a serious trouble. Payment processors take these cases very seriously. Never ship or sell fake or Replica products. This may lead to the account being closed.
Defense – If you shipped Replica or a fake item. Issue Refund and ensure you never repeat that. This may attract serious actions from the Card Brand, Local Authorities, Govt agencies, Merchant Account Acquirers and PSP. Don’t play with fire. Remember Replica Merchant Accounts don’t Exist
How to fight or defend the Chargeback Reson code 53.
The best way to reduce returns and chargebacks is by delivering quality service and products. Merchants must offer prompt responses to the buyers whenever needed. Business owners and the entire team must closely work to ensure faster delivery of the merchandise. In the Reson Code 53 Scenario most of the issues can be easily resolved by maintaining a prompt communication with the buyer.
Let’s look at ways that can help you reduce chargebacks including the one with reason code 53.
Document everything – Create Pieces of evidence. Yes, that’s true. Always document details of communication and send a copy to the customer. After every satisfactory call request a survey or satisfaction response from the customer.
Keep Call Recordings. If your sales model includes sales via inbound call center then record the entire call. You may also send the copy of verification and authorization call to the customer.
Show and Declare what you ship. Show detailed product information on the relevant product pages. Upload multiple high-resolution images. Mention details about color, Dimension, and Specifications. It will be a nice idea to send a copy of product info sheet in the order confirmation link. In case if the PDF copy is not possible then share the link to the product on the order confirmation email.
Check before shipping. Make sure you only ship what the customer ordered for. Do take special care when the product has variations in color, size or Fragrance etc.
Check the Shipping Address. Never ship to the wrong address. If you have any confusion then call the customer and confirm. Most of the times the customers will feel great about the call.
Pack Properly Ensure Proper Shipping Method. Your logistics partner is not taking care of only your company. they work with many. Ensure you use high-quality packaging material. Provide tracking information to the customer as soon as you get one. Send the copy of Proof of Delivery to the customer and send an order fulfilled email. keep POD and all communications with you for at least 12 Months. In case of ACH payment processing, you may keep it up to 24 months.
Recovering money from a fraudster may be challanging in case of fraudulent transaction. You may try to take legal options but if you use chargeback alert services then it will certainly work as the first line of defence. Fraudsters do this because they think that they cant go to jail for fraudulent chargebacks.
Above information about the chargeback reason codes and Chargeback alert services may not be 100% Accurate. Merchants should verify the card brand website and service provider website for accurate information.