Chargebacks

 

Are chargebacks affecting your business?

Credit card chargebacks are a costly reality for online merchants. A chargeback is a transaction disputed by the cardholder or issuer. There are many reasons for chargebacks, but the most common are returned merchandise, terminated services, disputes, errors, or fraud. If the credit card issuer considers the dispute valid, the merchant is required to refund the amount of the transaction plus a chargeback fee to the payment processor.

 

The REAL Cost of Chargebacks

 

If the chargeback dispute is considered valid, the merchant is required to refund the amount of the transaction plus a chargeback fee paid to the payment processor. The refund can occur without the merchant’s direct knowledge, even weeks later. There are additional costs associated with chargebacks a merchant needs to take into account:

  • Lost or Stolen Product or Service
  • Time spent addressing the dispute
  • Marketing
  • Fulfillment
  • Fraud Management
  • Operations

Once you quantify these additional costs, you begin to understand the real impact on your revenue. In addition to the operational and financial losses from chargeback disputes, merchants who receive a high volume of chargeback claims could be considered “High Risk” and pay higher interchange fees.

Merchant Error - Charges made accidentally or incorrectly by the merchant. These may occur when a merchant duplicates charges, authorizes the wrong transaction amount or fails to issue a refund as promised.

True Fraud - Chargebacks that are the result of identity theft, hacking, or credit card theft. Someone other than the cardholder made the charge, and the customer had no knowledge that their card was being used.

Friendly Fraud - Occurs when a customer disputes a charge that they or a family member knowingly made. The charge might be disputed if they were unhappy with the product, or if the charge was more than expected.

 

How Elavon can help you prevent eCommerce Chargeback fraud

 

The exposure your company has to eCommerce fraud depends on your business policies, operational practices, fraud prevention and detection tools, security controls, and the type of products or services you provide. All members of your business should have an understanding of the risks associated with eCommerce transactions and should be knowledgeable about risk management. You also need a payments partner that invests in preventing fraud.

Elavon has experienced eCommerce professionals to help identify potential chargeback red flags and mitigate risk with best practices.

 

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Elavon is a global leader in payments with a complete suite of eCommerce solutions

 

 

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The world of payments is continuously evolving. Elavon offers global payment expertise, so you can focus on expanding your business capabilities. We offer technical expertise to engineer eCommerce business solutions in addition to offering flexible integration options, including semi-integrated and hosted solutions.

Elavon’s innovation allows you to keep up with advancements in payment technology. You can accept omnicommerce transactions and manage your payments through a single gateway solution. Robust reporting uses data to provide actionable insights that can lead to reductions in the overall cost of doing business.

Integrating payment solutions into software can be complex. Elavon is a proven partner for reducing that complexity, saving you development time and expenses with comprehensive, end-to-end solutions. Global brands trust Elavon to take care of their customers.

Every customer interaction reflects your brand, so we treat your customers as if they are our own. Elavon provides In-house multi-lingual customer support and dedicated relationship management available 24/7.

 

 

The experience of partnering with Elavon

 

"The Same Day Funding has been huge for us with the credit card processing. That cash flow in any small business is huge"

Derek Smith - Powersports

" It's just critical that a company like ELavon is there to perform reliably, so that we can focus on the other aspects of our business"

John Lamb - Bagel Boys Owner

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