Merchants Losing $279 for Every $100 of Fraud – Chargebacks911 Says Cost Can be Limited with Chargeback Analyst

Dispute mitigation company, Chargebacks911, explains why merchants should invest in a chargeback specialist and what to look for in a reputable provider.

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Chargebacks 911

The last aspect of your business that you want to slack on is the finances and hiring a chargeback specialist takes the guesswork out of the equation.

Tampa Bay, FL (PRWEB) January 08, 2014

Despite chargebacks being one of the biggest challenges facing online businesses today, studies show that merchants are letting at least half of all chargeback cases go unanswered (1). And the financial consequence of such behavior is risky – online retailers are drawing a $279 loss for every $100 of fraud loss, partially attributed to chargebacks and their associated costs (2).
Dispute mitigation company, Chargebacks911, says merchants need to act before their hesitation costs them their business. But because many merchants are ill-equipped to handle excessive chargebacks, Chargebacks911 advises merchants to seek the help of a third-party chargeback specialist who can guide them to avoid a significant monetary loss, while also ensuring the viability of their business.

Why You Should Consider Hiring a Chargeback Specialist

Failing to respond to chargebacks not only diminishes merchant profits, but can also fuel more chargebacks, causing a loss for merchants in several ways, including:

•The merchandise already shipped – it is highly unlikely that the buyer will return the item(s);
•Chargeback fees and penalties which will be assessed by the credit card processor for every transaction;
•Multiple chargebacks (more than 1-2% of total transactions) could lead to a penalty of up to $10,000;
•A loss of reputation;
•Revoked ability to process credit or debit cards (3).

Chargebacks911 co-founder, Monica Eaton-Cardone, says that while chargebacks aren’t completely avoidable, having a strategy in place helps businesses minimize chargebacks and their associated risks. For merchants who are contemplating whether or not to hire a chargeback analyst, Eaton-Cardone suggests considering the following:

•Are there enough team members working to prevent chargebacks or fight them?
•Are the designated employees educated about chargebacks?
•Could previous chargeback cases have been handed better?

Which Qualities to Look For in a Chargeback Specialist

With the right knowledge, Eaton-Cardone says that finding a suitable chargeback manager is possible – the right match will not only prevent chargebacks, but fight and win cases, as well. There are three types of chargeback managers to choose from:

The first type includes retaining a risk mitigation consultant. This is a qualified individual with ample experience in chargeback processing who can advise or assist in reducing the negative impact of chargebacks. This is a preferred option for merchants already experienced in handling chargebacks. The employees are trained in fighting chargeback cases, but require the consultant’s input on how to proceed in order to generate the best results.

•The second option is to outsource a company that contracts chargeback processing agents who verify the validity of each chargeback, and then formulate a response to be sent to the company’s acquirer (the bank or financial institution that processes credit and or debit card payments) that either accepts responsibility for the botched transaction, or provides proof that the transaction was legitimate.

•The last option is more along the lines of a chargeback system that completely relieves the merchant of the burden of handling chargebacks. These providers have staff members research and analyze cases, and then make an educated decision on how to best settle those cases on the client’s behalf. This is an end-to-end solution.

Eaton-Cardone maintains that the above methods will render chargebacks controllable, leaving merchants free to do what they do best: providing quality services to their customers. In addition, continued Eaton-Cardone, they help merchants avoid the chargeback fees that can range anywhere from $15 to $100 per transaction.

“With all of the details that factor into a company’s wellbeing, keeping track of everything in-house is extremely difficult,” said Eaton-Cardone. “The last aspect of your business that you want to slack on is the finances and hiring a chargeback specialist takes the guesswork out of the equation.”

A former online retailer herself, Eaton-Cardone formed Chargebacks911 to relieve merchants of the burden of handling chargebacks. After her own trial and error in experiences with chargeback issues and seeing a void in the industry, Eaton-Cardone said she wanted to provide fast and reliable services that not only help to recoup the loss of funds as a result of increasing chargebacks, but to also curb future chargebacks so that merchants retain all processing abilities.

Chargebacks911 specializes in servicing merchants and the majority of banking institutions. 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 provide 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.“New Research Shows That Half of CNP Chargeback Requests Go Unanswered.” Yahoo.com. Yahoo!, 15 Oct. 2013. Web. 11 Nov. 2013. ca.finance.yahoo.com/news/research-shows-half-cnp-chargeback-120000295.html.

2.“LexisNexis® True Cost of Fraud(SM) Study.” Lexisnexis.com. LexisNexis, 16 Sept. 2013. Web. 1 Nov. 2013. lexisnexis.com/risk/newsevents/press-release.aspx?Id=1379105834100604.

3."How Chargebacks Can Quickly Sink Your Online Business." Dailydealmedia.com. N.p., 19 Nov. 2013. Web. 04 Dec. 2013. dailydealmedia.com/how-chargebacks-can339-quickly-sink-your-online-business/.


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