Finding the Ideal Chargeback Protection Balance

We are in an age of being able to constantly connect, communicate, and work—at any time and anywhere. This has resulted in too many people spending too much time working and not enough time balancing out their lives. Admittedly, it’s a fine line and one that shifts for everyone. What works for one person is not going to work for another. Finding this perfect balance holds true for merchants who must address the demands of chargeback protection while trying to maintain a steady revenue stream.

With the ability to always be connected and communicating, merchants are spending more time analyzing their customer habits and looking out for chargeback and fraud risks. However, it’s very easy to become overly aggressive with your chargeback protection solution.

Chargeback Protection and Your Business

Fraud is on the rise. With the swift evolution in technology, widespread domestic EMV adoption, mobile payments, and pressure from consumers for quick and easy payment solutions, it has become more challenging for merchants to protect themselves from fraud.

Some merchants take an avoidance approach and ignore the looming problem until it’s too late. Other merchants take an overly aggressive stance and tighten their websites, mobile communication, and payment solutions to the point where they’re losing out on valid sales and ultimately hurting their business.

Just as the ideal work-life balance is different for everyone, the fine balance of chargeback protection is just as unique. Your business needs and response to fraud threats are different from those of your competitors, and this means you need a unique and customized approach to chargeback prevention and protection.

One of the best ways to know what you can do—and really should do—with your chargeback prevention approach is in learning from others. Consider these examples of crossing the line between effective and aggressive chargeback protection:

  • Unnecessary blacklisting:  While establishing a list of known fraudsters is not uncommon, it’s vital that customers who have been victims themselves of fraud aren’t on this blacklist.
  • Disclosing personal data:  Customer trust is vital to business success. Exposing the personal data of customers who file chargebacks or complain on social media, is a dangerous tactic that can backfire.

While most merchants never believe that they would resort to these tactics, it’s very easy to cross the line and become too preventive.

Your Business, Your Chargeback Protection Solution

Our experts at assist merchants every day who know they need to protect themselves from fraud but are confused by the numerous options available. It’s easy to feel daunted by the technology and submit to fears of chargeback fraud and lose sight of your goal. Finding the right balance of chargeback protection that keeps fraudsters away will help you continue to provide for valued customers who buy your products and services.

When researching your options and thinking about your business, remember to think about these key principles of chargeback protection and prevention:

  • Right tool for the problem:  Choose the right tool to protect you from key threats. Device fingerprinting, IP geolocation, 3-D secure advanced authentication, or voice recognition can all be effectively implemented.
  • End-to-end protection:  Don’t neglect front-end protection for the sake of tight back-end protection. Use a solution that allows for control and balance with an end-to-end solution.
  • Act quickly:  Move quicker than the fraudsters and keep technology up-to-date. Speed of payment solution implementation and downtime prevention is important.
  • Data is key:  Knowing who is browsing, buying, and commenting is key in identifying fraud risk. Make sure that all data points are being analyzed and used properly.

The more you know about your chargeback prevention options, the better prepared you can be. Whatever you do, don’t rush into deciding on a payment solution without first analyzing and understanding how it will have an impact on your business. What appears to be an ideal protection mechanism, can easily cross the line and result in lost sales and impacts to your brand reputation.

The team is available to answer your questions and help you find the ideal end-to-end solution that provides you the right balance of chargeback protection and business success.