Chargeback Alert Technology For High Risk Businesses
As a high-risk business, dealing with customer disputes is, unfortunately, an all-too-frequent occurrence, hence why so much value is placed on customer experience and customer service. Subsequently, chargebacks provide some with a real problem on a day-to-day basis. Essentially, chargebacks are when a customer contests a credit card charge through their card issuer. The disputed money is immediately withdrawn from the business account and held in escrow.
Until the dispute is closed, a business will need to allocate finances to labor, as well as deal with fines from their own card issuer. Ultimately, it’s an expensive process. But, a relatively new solution has emerged to help businesses cut their chargeback rate and avoid hefty charges – Chargeback Alerts.
Chargeback Alerts Can Reduce Your Chargebacks
It’s a simple way for a business to complete swerve the chargeback procedure altogether. You see, if you sign up with an alert provider, you’ll hear about chargeback disputes from your customers instantly, and be issued with a three-day timeframe to provide a full refund. If you hand over a full refund, the dispute is halted, and your card issuer will close the case.
By receiving alerts on chargebacks before they’ve even happened, a business won’t need to pay any fees, won’t need to allocate time to fight the dispute and won’t have any money withdrawn. All you need to do is pay a full refund to the customer to solve the issue immediately.
Chargeback Alert Technology Is Growing in Popularity
Although it may sound like a great system, it still hasn’t been rolled out in full force yet. By that, we mean not all card issuers and banks have signed up to the Chargeback Alerts system. So, that means there’s around a 40% chance that you could face a dispute from a customer who has a bank that isn’t enrolled.
Resultantly, the alerts won’t make an ounce of difference and the dispute will go ahead as normal. Luckily, though, the system is growing exponentially in popularity, and more and more issuers are signing up.
What to Do When You Receive an Alert
Once you receive an alert, the smartest thing to do would be to capitalize on it and pay the customer a full refund. That’s the whole purpose of being signed up to a Chargeback Alerts system. If you try to worm your way out of it by liaising with the unhappy customer, more times than not the dispute will still continue. So, you need to be prepared to pay a full refund if you are signing up to the system.
How to Sign Up
It’s very, very easy to sign up; you just need to locate an alerts provider that meets your needs. Some charge more per alert than others, but some are more effective. If you need guidance or more information, feel free to give us a call to discuss your current situation and determine if this high-risk merchant account chargeback alert service is right for your business.
About The Author
Managing Partner at High Risk Merchant Account LLC
Co-founder and managing partner at HRMA-LLC, a leader in the credit card payment processing space. Specializing in high volume merchant accounts and ach processing. Call us to discuss your needs or visit us online today at hrma-llc.com