Many retailers aren’t even aware of chargeback triggers, which may mistakenly be built into their businesses policies.
Tampa Bay, FL (PRWEB) February 29, 2016
It happens at the beginning of every year: millions get the urge to really dust off those personal goals to get in shape. And many chase this purpose—not with lifestyle changes, but with “nutraceuticals” (mostly natural substances with largely unproven benefits that range from weight loss to “silver bullet” health maintenance).
The Centers for Disease Control asserts that the health benefits of dietary supplements are “unclear.” Despite this, dietary supplements have maintained their top ranking among alternative healthcare approaches since 2002 and 2007, the last two times the CDC studied this topic. (1)
Without a proven lifestyle plan that includes a realistic diet, quality exercise and the time to build up momentum, most impulsive nutraceutical consumers drop off quickly, seeing no results, and demand a chargeback—laying blame on the merchant’s product rather than their own lack of follow-through.
Because of this characteristic, many merchants selling in this industry get labeled “high-risk”—or are soon labeled as such—by a majority of traditional card processing providers. Worse, they may have difficulty securing merchant services at all. When a bank processes a chargeback, it automatically assumes that the merchant was in the wrong. Then, when the merchant accepts the chargeback without dispute—to keep the peace and his customer service reputation intact—the bank’s impression is thus affirmed. Repeated chargeback complaints continue to taint the merchant’s reputation.
Monica Eaton-Cardone, COO of dispute remediation leader Chargebacks911, says the lack of industry endorsed standards is a primary barrier to sustainable solutions.
“We are continually gathering, breaking down and analyzing chargeback data from multiple perspectives. From this, we know things such as the fact that women charge back 400% more than men on tangible products, but for digital products, they’re about even,” she said. “We also know which issuers filed the most chargebacks in the diet product markets in the beginning of the year.”
Eaton-Cardone says this data shows that merchants have little standardization in their chargeback processes and are, for the most part, unequipped to deal with chargeback fraud or even “the customer is always right” bias which cardholder institutions have towards consumers. “Many retailers aren’t even aware of chargeback triggers, which may mistakenly be built into their businesses policies.”
Chargebacks911, in an effort to assist merchants, has created a free chargeback prevention eBook for valuable tips on combating chargebacks, and encourages online retailers to sign up for a free chargeback analysis to learn how an effective risk management solution can positively impact earnings.
Monica Eaton-Cardone will be speaking at the Money2020 Conference in the UK on April 4-7, 2016, and at the Card Forum 2016 in the U.S. on April 12-14.
About Global Risk Technologies and Chargebacks911:
Global Risk Technologies is most known for its role in payment processing solutions that cater to each side of the value chain: Chargebacks911.com and eConsumerservices.com. The firm is headquartered in Tampa Bay, Florida, with offices in Ireland and Atlanta. It has approximately 350 employees worldwide and currently manages over 200MM in transactions each month, with clients located globally focused mainly in the U.S. and Europe.
Chargebacks911 is a division of Global Risk Technologies, and 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 focuses on chargeback mitigation and risk management. It specializes in servicing Internet merchants and acquiring banks, offering dispute response solutions and deep analytics. Chargebacks911 works with its clients to help them keep dispute rates down and retain their ability to accept credit cards. For more information, visit http://www.chargebacks911.com.
1. “This Is America’s Favorite Dietary Supplement, Even Though the Benefits Aren’t Proven.” Washington Post. The Washington Post, n.d. Web. 19 Feb. 2016. washingtonpost.com/news/wonk/wp/2015/02/10/further-proof-of-the-american-love-affair-with-unproven-dietary-supplements.