Chargebacks 911 Reveals Merchant Important “How-To” Minimize Risk with Recurring Transactions
Tampa Bay, FL (PRWEB) July 15, 2013 -- In today’s fast-paced world, most consumers operate largely on a mindset of convenience and ease—recurring transactions for online purchases are now being utilized by many. But with the ever-increasing threat of merchant chargeback issues, dispute mitigation company, Chargebacks 911, advises merchants against blindly instituting the option of repeated charges at the risk of experiencing increased chargebacks.
A recurring transaction is one in which a customer’s account is periodically billed for a repeated delivery of a product or service over time—for example, a magazine subscription or a membership fee. Because the charge dispute process largely favors consumers, online merchants often bear the brunt of losses when a consumer decides to cancel and/or contest any recurring charges on their debit or credit card.
Preventing contested charges resulting from recurring transactions often means an increase in revenue for merchants – as a result, retailers are then better financially-equipped to handle the increased costs of chargebacks. Monica Eaton-Cardone, co-founder of Chargebacks 911, says that the risks many merchants encounter in regards to recurring transactions can be curbed or balanced, by implementing the following security measures:
● Ensure that all recurring transactions are clearly identified as such. This identification is usually handled automatically by a merchant’s transaction processing system; however, you should check with your merchant bank to confirm that your system is properly set up.
● Notify the customer before billing. Cardholders should be routinely notified of regular recurring payments charged to their credit/debit account (at least 10 days in advance is best). The advance notification should include the amount to be charged to the account and where necessary, alert the cardholder if the purchase exceeds a preauthorized range.
● Participate in Visa Account Updater (VAU). VAU is a Visa service that allows merchants, merchant banks, and issuers to exchange electronic updates of cardholder account information. This will help verify that on-file information, including account number and expiration date, is correct.
● Check customer logs daily for complaints. Be on the lookout for complaints relating to purchase amounts or failure to notify customers in advance if the charge exceeds the pre-authorized amount range. Follow up with the customer and rectify the situation before it has a chance to escalate.
● Stop repeat offenders. Customers who experience favorable results with chargeback loopholes may be encouraged to repeat this behavior. Help reduce the likelihood of this situation by fighting illegitimate chargebacks. Not only will lost revenue be recaptured, but this also helps reverse the philosophy that there is no consequence for these actions.
Eaton-Cardone suggests that merchants utilize the above tactics as means of protection against the costly backlash from customer disagreements and chargebacks.
“Online retailers must realize that being proactive is a requirement, not an option—it is up to them to protect their businesses and keep them thriving,” said Eaton-Cardone. “Because consumers win the majority of chargeback cases (due to no response from merchants), merchants have to enact measures that evidence responsible business practices. That is the key to defending against chargebacks.”
Chargebacks 911 was created by Eaton-Cardone, a former online retailer, to provide solutions to merchants’ chargeback issues. After her own trial and error in experiences with chargeback issues, she formed Chargebacks911 to provide fast and reliable services that not only help 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, consumers and the majority of banking institutions.
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 offer 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.
Alyssa Kaplan, JoTo PR, 888-202-4614, [email protected]
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