oes your business receive more than its fair share of chargebacks?
Credit card associations are paying attention. Most card associations monitor merchant activity on a monthly basis. They keep tabs on everything from chargeback ratios, to disputes and fraudulent transactions.
Merchants are expected to keep disputes and fraud at acceptable levels. If your business receives excessive chargebacks, you could land on the chargeback monitoring program.
If you exceed the threshold set by the card network, you will be placed on a monitoring program. In most cases, you will receive a warning before being placed in the program.
Businesses who receive a warning must take immediate action in reducing chargeback ratios.
Here are a few ways you can prevent chargebacks:
In the event that your business is placed in the program, you may be required to pay monthly fines and additional fees until your level of fraud and disputes have gone down.
You’re going to want to take an active role in reducing your levels of fraud and disputes. Work with your acquirer to develop a strategy to reduce your chargeback levels – or what is also called a chargeback mitigation plan.
If you want specialized help in preventing chargebacks, reducing your chargeback levels or creating a chargeback mitigation plan (required if you have received a warning), then get in touch with us so we can help you successfully navigate chargebacks and chargeback disputes.
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