This material will be useful for those who work in the vertical – gambling, betting, forex, advertising and dating, pharma and dietary supplements and all those who are seriously thinking about starting to earn money online in e-commerce.
We will try to cover the topic of Internet card acquiring, without which e-commerce businesses and affiliate programs can’t do without, with very few exceptions.
We will consider the most evident problems connected with payment acceptance and, of course, the solutions that allow to increase turnovers, reduce risks and optimize costs.
HIGH-RISK PROCESSING: HOW TO MAKE LIFE EASIER FOR BIG MONEY?
Unfortunately for the merchant, user service doesn’t end after the order is placed and the purchase is successful.
According to the rules of international payment systems, the cardholder has the right to make a chargeback within 120 days, and in some situations the term increases to 540 days.
Merchants from the above-mentioned vertical are the most susceptible to chargebacks due to:
– Product specifics and the unwillingness of payment aggregators or banks to delve into every incident, imposing a penalty for the very fact.
– Aggravating the situation of merchants is their own business goals, pursuing which they go beyond the requirements of the local legislation of the consumer of their services.
– Conscious miss code. This is a merchant activity code, which is assigned in accordance with the merchant’s type of business.
PENALTIES AND SANCTIONS FOR CHARGEBACK
Businesses can easily recognize themselves in the portion of the items listed above. Our traffic colleagues may not even be aware of the consequences of “some” chargebacks, so let’s get to the numbers:
– $40 to $60 Penalty for the fact of a chargeback. The payment aggregators have the biggest appetite and for “terminals” which are ready to accept FTD (first time deposit) they charge the highest commission not only for chargeback, but also for transactions service.
– 0.9% or 100 chargebacks per month per “terminal”. This is the maximum threshold after which the terminal faces the close attention of the payment systems, a “probationary period” and in the case of sufficient reason it will be closed.
– Transaction fee for the first deposit-purchase, depending on the type of business and turnover varies from 6% to 15%.
And be sure that exceeding the level of chargeback, the acquirer or payment aggregator increases the commission for transaction processing. Unexpected fines from international payment systems or payment aggregators are not excluded as a result of frequent chargebacks, which fall on merchant.
The policy of payment systems “the client is always right” and, in fact, all their rules are aimed at ensuring that the customer has an opportunity to solve it directly with the merchant through an intuitive ability to find support contacts or refund button.
Even with this option, the customer, after a short wait or feeling dissatisfied with the response, asks his bank for a refund.
SOLUTIONS TO PREVENT CHARGEBACKS
However, VISA has implemented a straightforward Rapid Dispute Resolution (RDR) option for merchants.
It allows you to make a refund without penalty fees and include the incident in that very threshold of 0.9% or 100 chargebacks per month if the incident is resolved within 24 hours by way of a refund.
In fact, banks and payment aggregators of merchants can not only ignore this decision, they simply do not have time to fit into the timing allotted by the system.
It is easy to guess who pays for all this? What really works is the payment aggregator’s agreement with Equier on a refund in the case of a chargeback and the ability to count it as a refund. Unfortunately, there are very few such offers on the market.
In reality there is one solution to prevent chargeback, it is companies that are integrated in international payment systems with built technological infrastructure for merchants and payment aggregators that do not have time.
One of the few technology companies that works directly with high-risk merchants understands the specifics and pains of this vertical – the affiliate program Chargebackhit.
Service not only catches information about Chargeback in Visa, MasterCard within first 2 seconds and give it to merchant, but also allows to work with this merchant, making decision to make refunds without causing problems for acquirer or reprzentation.
It is important to note that by working with this solution, you have the ability to decide on a chargeback BEFORE the card acquiring service providers receive it.
WHAT YOU GET FROM CHARGBACKHIT
Chargeback prevention solution from Chargebackhit allows you to:
1. Reduce chargeback rates by up to 80% on VISA / MC cards, reacting faster to alerts.
Automate decision making algorithms when a chargeback occurs.
3. Increase turnover on myd without exceeding allowed chargeback level.
4. Your MID becomes less messy and not prone to sudden blocking.
5. Absence of any ccosts on the connection.
6. Pay only for prevented chargeback. There is no charge in the case of a reprisal.
CHARGEBACKHIT CONNECTION DISCOUNTS
Comments from a spokesperson…
The service we provide seems unbelievable due to the fact that it is more popular in the US and Canada than in Europe.
Even our new partners who work in acquiring may not come across this solution and, having heard about it, may be confused with an anti-fraud system. We are open to cooperation with any type of business, anyone who wants to grow and increase turnovers without restrictions.
Especially for readers of my blog, we will provide a free integration and trial for 10 notifications by KUPRUM code, which – according to our estimates – will save you the first $400-500.
To get the discount: start your message in the feedback form on the service site with this offer above. Or when you contact your manager to connect.
I wish all to live in the Heart