How To Prevent Chargebacks
Methods On How to Prevent Chargebacks
A chargeback is a great tool for a fooled customer but a natural disaster for a merchant attacked by fraudsters. Because credit card issuers presume customers’ innocence, they often abuse this presumption, which causes enormous losses for merchants. To prevent this, you as a merchant can arm yourself with VMPI (Visa Merchant Purchase Inquiry) and stand for yourself in the dispute. Here’s how to prevent chargebacks.
How Does VMPI Work?
While you’re doing your business online, VMPI tracks all the transactions with your customers. The system records various types of data about their purchase. With VMPI, you register the date and the time when the transfer was confirmed, the location (at least the recognized one), device ID, and so on. VMPI also tracks shipping information, like delivery address or tracking number.
If the customer comes up with a dispute, you get notified about that and can defend your position. As proof, you can send the card issuer the necessary information about the transfer. If the data proves correct, you will not be charged back.
What Are the Benefits of VMPI?
It is proven safe. It’s developed and powered by the VISA system, one of the most trustworthy financial institutions in the world.
It works automatically. Once set up correctly, it just runs in the background and only bothers you when there’s a reason.
It connects with other fraud prevention systems that act even more challenging to prevent fraud. With them, you can block any transaction if its details prove suspicious or create rules so that potentially fraudulent accounts are blocked automatically.
Does the Merchant Have to Pay for It?
Yes, this service is paid. Typically, the merchant pays for an alert when a chargeback claim is recognized. The price (depending on the overall number of alerts) starts at $10 per alert and goes down to $8. Given that these alerts may prevent losing hundreds and thousands, or even more, this deal makes sense. Even though some chargeback claims are finally satisfied.
Another expense it takes is the initial setup and maintenance. Yet, having that done means you will not have to worry about how it works. The system automatically processes the payments and stores the data you may need during disputes. As well, it shares the required information when necessary.
Other Solutions Against Chargebacks
Let’s refer to other solutions when it comes to how to prevent chargebacks. Numerous systems prevent potentially dangerous deals intelligently. Analyzing details like email, location, device ID, mailing address, transaction time, and so on, they rate the risk any separate purchase brings. Using adaptive fraud recognition, they utilize machine learning to detect threats in split seconds.
These systems, though, are not as global because they have to set up a collaboration with numerous card issuers and merchants, as well as security agencies, to get their databases as complete as possible. They may work fine if your business is subject to some specific risks, though.
Stand Up for Yourself
Armed with data, you can prevent money loss from chargebacks and make it the tool of customer protection, not fraudsters’ enrichment. If you have had any positive or negative experiences with it, we’d like you to share them in the comments.
How To Report Suspicious Activity
Let your family and online friends know how to prevent chargebacks by sharing this article on social media. You could also officially report criminals and any suspicious activities to the Federal Trade Commission (FTC) using the link below:
How To Protect Yourself More
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