Chargebacks 911
The best way to limit the impact of chargebacks on your online business is to be proactive in addressing the issue.
Tampa Bay, FL (PRWEB) October 30, 2013
E-commerce is a booming business that generates more than $200 billion in sales annually and is rapidly growing (1). As the growth of e-commerce soars, however, so do its problems. One of the biggest problems online merchants face today is related to chargebacks - according to Monica Eaton-Cardone of Chargebacks911, a dispute mitigation company that services merchants, fines from credit card companies resulting from chargebacks can range from $15 up to $100 each and hurt a retailer's bottom line. Eaton-Cardone explains that chargebacks are preventable with merchant preparation, advice and assistance.
When a customer is dissatisfied with an online purchase and demands a refund from their credit card company, a chargeback is filed against the merchant that reverses the associated transaction, resulting in a lost sale in addition to the loss of merchandise associated. While the chargeback process was designed to protect consumers from dishonest merchants and fraud, some consumers are using it to commit what’s called “friendly fraud,” by seeking refunds at the expense of online merchants. (2)
According to a publication from the Harvard Business Review Journal, 95% of businesses fail within the first two years, and for online businesses, the percentage is even higher (3). Business owners may assume that the first and largest barrier to success is the challenge of acquiring sales, or increasing consumer demand for their product(s). However, Chargebacks911 recently commissioned an independent survey of 200 e-commerce merchants which found that credit card processing can be even more difficult – a little known, but very significant source of e-commerce business failure today. It is no secret that without the ability the to process electronic payment methods, there would be no Internet marketplace. The company warns that online merchants could easily go out of business unless they get a handle on chargeback issues.
Why It’s Important to Limit Chargebacks
Online retailers are generally unprepared to handle chargebacks. Too many chargebacks can result in increased fees, fines and processing costs, and may damage a company’s reputation. If a merchant has more than 1% of its customers chargeback, they may no longer be able to accept credit card payments, which is a vital necessity for any e-commerce activity.
Disputing chargebacks is also costly, and often requires hiring a third-party professional. By the time it’s all over, disputing a chargeback might actually cost the merchant more than the cost of the lost product or service.
Chargebacks911 warns consumers that there are consequences to initiating a chargeback, including merchants charging higher prices for their product or service, the possibility of a consumer not getting a full refund and a merchant blocking them from making a purchase in the future.
Chargebacks911 Offers Solutions
According to Eaton-Cardone, co-founder of Chargebacks911, online merchants can be spared the devastation of friendly fraud by proactively utilizing the expertise of a professional service.
“The best way to limit the impact of chargebacks on your online business is to be proactive in addressing the issue,” says Eaton-Cardone.
Chargebacks911 offers unique and effective solutions to the chargeback crisis by not only helping merchants recoup costs, but also helping to curb future chargebacks so that merchants retain all processing abilities to stay viable in the market.
Chargebacks911 accomplishes this by receiving and identifying the chargeback customer on the company’s behalf, ensuring any future sale is prevented from transacting for that customer. Each chargeback is classified using Chargeback911’s proprietary coding system to determine a risk and reward prediction. Then, Chargeback911 prepares an intelligent dispute response that best serves the case requirements to help the merchant not only win the case, but also improve its reputation in the eyes of the credit card company, also working to deter the customer from a repeat scenario.
For more information about Chargebacks911 and its services, visit http://www.chargebacks911.com.
About Chargebacks911:
Co-founder Monica Eaton-Cardone established Chargebacks911 in September, 2012 out of necessity, after many years as a merchant struggling to find a solution to chargeback issues. Chargebacks911 was developed specifically for merchants to offer immediate aid through proprietary technology, and provides the necessary function that gives merchants the freedom to focus on their core competency and optimize their in-house skill set. Chargebacks911 specializes in servicing Internet merchants, and offers both response and resolution services for chargebacks and cardholder disputes. The company works with merchant clients to help them keep their dispute rates down and retain their ability to accept credit cards. Chargebacks911 provides a unique exception to standard dispute processing for dissatisfied consumers who wish to remedy transactional disputes without the requirement of additional intermediaries or lengthy correspondence requirements. For more information, visit http://www.chargebacks911.com/.
1.Colao, J.J. "Five Trends Driving Traditional Retail Towards Extinction." Forbes.com. Forbes Magazine, 13 Dec. 2012. Web. 30 Oct. 2013. forbes.com/sites/jjcolao/2012/12/13/five-trends-driving-traditional-retail-towards-extinction/.
2.Herzlich, Jamie. “Small Business: Avoid fraud to prevent chargebacks.” Long Island Newsday. Web, 10/06/13. newsday.com/columnists/jamie-herzlich/small-business-avoid-fraud-to-prevent-charge-backs-1.6169059
3."Reminder: 95 Percent of New Businesses Fail." Startupdispatch.com. N.p., 8 Sept. 2012. Web. 25 Oct. 2013. startupdispatch.com/startups/reminder-95-percent-of-new-businesses-fail/.