Despite merchants’ genuine commitment to quality products and customer service, many find themselves struggling to counteract the drowning costs of unwarranted chargebacks. Buyers frequently exploit the generosity of consumer protection policies and cheat businesses of legitimate sales.
Merchants everywhere want to know…
Why aren’t customers required to pursue conflict resolution with the merchant before allowing to dispute a charge?
The ability to chargeback a transaction was originally set up to provide an avenue for consumers to appeal unwanted charges they could not otherwise resolve directly with a business. Most consumers believe there isn’t a difference between contacting their bank for a refund and contacting the business directly. Banks are supposed to check and see if their customer has tried to resolve the matter with the business before processing the chargeback. Unfortunately, many banks are understaffed, overworked and rarely have a dedicated person to following up on disputes to determine if they are legitimate.
In most cases, businesses would gladly resolve consumer dissatisfaction or misunderstanding if only given the opportunity. Unfortunately, the resolution of purchase disputes with a bank is seen by the public as a convenient alternative to direct reconciliation with a business.
Why are customers allowed to chargeback when legitimate products and services have been provided?
Banks want to meet the needs of their customers. When faced with chargeback conflicts, banks are naturally inclined to side with their clients over business they know nothing about.
Why do most chargeback prevention products focus on combating intentional fraud when the majority of chargebacks are a result of buyer’s remorse, family member purchasing, or other less malicious motives such as simple forgetfulness?
Intentional fraud is widely viewed as being more dangerous to business than friendly-fraudA legitimate transaction that is charged back based on buyer’s remorse or other exploitations of consumer protection regulations. Fraud, in the traditional sense, is when a merchant wrongfully charges a customer. Friendly-Fraud is typically when a customer wrongfully charges back a bona fide purchase to the merchant.. While the damaging effects of malicious fraud endanger businesses and consumers alike, friendly-fraud also contributes significantly to the chargeback crisis. Friendly-fraud is the fastest growing source of chargebacks today and accounts for more than all other chargebacks combined.
Isn’t there anyone who will stand up for the rights of my business?
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