Chargebacks are costly to any business, not just in terms of the fees involved, but chargebacks rates of over 1% can lead to your merchant account fee increasing, reserve increasing or being shut off. Online businesses simply can’t afford to be without merchant services, so what can be done to reduce the chargeback ratio and is there a chargeback mitigation tool?
Credit card fraud is a common reason chargebacks occur but it’s not the only reason. Customer dissatisfaction with a product or service and buyer’s remorse can result in cardholders contacting the issuing bank to dispute the charge.
Ethoca is a service that alerts businesses to the fact that a chargeback has been made. Once you are aware of a chargeback you can then take the necessary measures to resolve the issue. Customers can be contacted and refunds issued instead of the dreaded chargeback being implemented. This service is an invaluable tool in protecting your merchant account with chargebacks being reduced by up to 40% in the USA when put into practice.
How Does It Work?
1. The issuing bank of the credit card holder confirms a dispute and notifies Ethoca.
2. Ethoca alerts the merchant of this dispute in real time.
3. You the merchant, take measures to resolve the dispute by issuing a refund or even stopping fulfillment of the original order.
4. Ethoca relays the outcome to the issuing bank and the chargeback is removed.
Low monthly fee
Low alert fee for successfully prevented a chargeback
Month to month plan
Discontinue at any time
It makes financial sense to implement such an invaluable tool as Ethoca as it will undoubtedly lower your chargeback ratio for the price of the chargeback fee itself. Additional fees, penalties, and fines can be avoided also. In some situations, you can even prevent the fulfillment of the original order which protects your business’ bottom line.
If you would like to sign up for Ethoca or have questions about chargeback prevention please contact us at: 844-253-9769