Chargeback alerts: Best ways to protect chargebacks

Today, chargebacks affect everyone involved in eСommerce, regardless of product type or sales volume. Analysts predict that chargebacks will cost merchants more than $110 billion annualy in 2023. And this problem is increasing year after year.

That’s why many sellers are thinking about ways to counteract the problem. The most effective way to do this is through chargeback alerts. This method avoids a significant number of chargebacks that negatively impact your income and can even put at risk your entire business.

This article explores what chargeback alerts are and how they work. It also looks at why you might need them and who can help your business with this service.

What Are Chargeback Alerts?

As mentioned above, a chargeback alert is a special service a chargeback management company provides. It is part of the chargeback protection that works effectively to increase the company’s revenue and protect against unauthorized debits and financial claims.

Providers of such services actively work with banks, which allows merchants who use the service to receive advance notice of impending chargebacks. Thus, the problem of chargebacks can often be resolved before a request occurs.

Many people think that chargeback alerts and chargeback notifications are the same things, but they are not. A chargeback notification is an incoming letter stating that a chargeback request has already been filed against the seller. This gives the seller the opportunity to fight the chargeback only through an appeal, which is a complicated process that requires a lot of time and money.

On the other hand, a chargeback alert is a message the seller receives when a chargeback has not yet been filed against the seller. This indicates that the chargeback has not yet been registered and is pending. In such a case, the merchant has up to 72 hours to try to refund the amount of the disputed transaction and thus avoid a chargeback.

How Do Chargeback Alerts Work?

Chargeback alert services are working ahead of the curve. They integrate with your billing systems and account management services. In this way, the service provider tracks incoming disputes and has the ability to handle them in real-time. This technology is most often available to service providers who are certified payment services and have a working relationship with banks.

When you receive a chargeback alert, you have several options, such as disputing the transaction through a representative or offering the buyer a refund. Without chargeback alerts, you can only fight the chargeback requests you’ve already received.

Below is a brief description of the chargeback alert process:

• The buyer has contacted the issuing bank to dispute a transaction on their statement that they believe to be incorrect.
• The issuing bank sends a notification to the acquiring bank via its intranet about the incoming chargeback.
• The chargeback alert notifies the merchant that a chargeback has been reported to his company. The merchant then decides whether to refund the customer, cancel the order, or dispute the current transaction.
• Suppose the merchant decides to avoid a chargeback because it might harm his merchant account and decides to refund the cardholder.
• The merchant sends a notification to the issuing bank that the dispute has been resolved. Thus, the quick notification and decision by the merchant prevented further proceedings and saved money and time for all parties involved in the complaint.

4 Essential Benefits of Chargeback Alerts

Each online seller wants to increase profits and reduce costs. That’s why most develop their brand, fight fraud, and try to avoid chargebacks before they happen. The good news is that chargeback alerts will help you achieve your goals and reduce the risk of chargebacks. By using a service like this, you will be able to

Reduce Fulfillment Costs

Suspending the dispatch of disputed orders and canceling the shipment of disputed items will save high processing costs.

Quick Response

It will take 1-2 days at the most to get results, instead of waiting 3-5 weeks for a dispute to be resolved for a refund.

Lower Chargeback Ratio

By preventing chargebacks and resolving disputes prematurely, you can reduce the total number of chargebacks by up to 40%.

Reduced Fees

Charges for notification of chargebacks are significantly lower than the cost of processing and appealing a chargeback.

In addition to these four important benefits, another benefit should be mentioned: your customers will also get a high speed of resolution for their problems. This will significantly improve the quality of customer service and increase the conversion rate.

Set Chargeback Alerts & Focus On Your Business

With Chargebackhit, you’ll get broad coverage for chargebacks. The company uses a unique chargeback detection technology in close cooperation with card networks and bank representatives. This allows it to detect chargeback requests that other companies may not see. If you’re ready to protect your business from the negative impact of chargebacks, feel free to contact a Chargebackhit representative and get the most out of your business today.