Chargeback Alerts: All You Need to Know | Chargebacks are a modern plague for eCommerce platforms. Customers and fraudsters can quite easily request their money back through their bank system and leave you behind with a stain on your financial reputation and sometimes without a returned product. While there are quite a lot of methods to eliminate chargeback and close disputes successfully, chargeback alerts are amongst the most effective. Read this guide by chargeback pros from Covery.ai to learn everything about them.
Is Chargeback Different from a Refund?
A chargeback includes a forced return of the payment by the cardholder’s bank. If a customer requests a chargeback, their bank aggressively takes the money back and starts suspecting you of suspicious activities. A refund doesn’t involve banks and lets you return the money to your customer directly and without any damage to your store’s reputation in the bank sector. That’s why you have to encourage unsatisfied users to use your refund policies to get their money back.
What Chargeback Alerts Actually Do
Chargeback alerts are automated services that are designed to identify impending chargebacks and notify you of them. Alert providers work with banks in order to track this information.
Once you receive an alert, the provider automatically puts the chargeback process on a hold. This will let you contact the initiator and persuade them to use your refund policy or let the chargeback process finish and open a dispute to prove you deserve your money back.
In order to select the right chargeback alert provider, you have to check the list of banks covered. There’s no such company that has relationships with all existing banks, so you have to pick up the one that covers bank networks permitted on your platform or sign contracts with two or more providers for better coverage. You also have an option to use the services of alert resellers that gather alerts from all major systems and provide a more comprehensive output.
You should also enable chargeback notifications from your payment processing portal, if available. It’s one of the fastest ways to start a fight on a chargeback.
Chargeback Alerts Have Deadlines
Regardless of the alert provider you have, your alerts will last not more than 24 hours. Considering this, you should select the most convenient way to receive alerts and keep an eye on that source all the time. The best option is to receive instant notifications from a custom browser plugin, but email notifications can work well too if your employees are attentive enough. Which is doubtful, of course.
Cardholder Dispute Resolution Network (CDRN) is an early chargeback warning system that can alert you when one of your customers attempts to file a dispute. The system gives you a great opportunity to offer a direct refund to the customer and close the chargeback dispute without losses. You can skip such alerts if you want to fight the chargeback in case it’s fraudulent. The option is good for high-value items as alerts charge a fee.
Similar to CDRN, Ethoca alerts interrupt the chargeback process and give you a limited amount of time to make a refund or let the process continue. There are no processual differences between CRDN and Ethoca.
Chargeback is a popular fraudulent instrument, so it’s highly important to keep your merchant’s account protected from any ineligible actions. Even those chargebacks that seem eligible can be disputed and closed in your favor, so always stand for your products and services. Get an alert provider with a comprehensive dashboard, and you will always stay on top of both potential and ongoing chargeback processes.