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The Solution
Chargeback Guardian Sheild THE SOLUTION

Banks and consumers are actively engaged in protecting themselves from fraud, lost business, and lost revenue. Since no one in this commercial hierarchy will stand up for the rights of individual merchants, it is time they take action to protect themselves. Businesses must adopt deliberate and proactive measures to combat chargebacks. Chargeback Guardian is the merchant's most powerful ally in this effort.

Prevent - Protact - Resolve
PREVENT CHARGEBACKS

"An ounce of prevention is better than a pound of cure" Chargeback prevention is a businesses first, and most important, line of defense against credit card processing catastrophe. Unfortunately, regulations designed to protect customers and banks can make this effort extremely difficult.

Here's how:

When customers contact their bank to dispute an E-commerce (or card not present) charge, most banks issue a Chargeback AdviceNotification from the bank that says �We have reversed the transaction and taken the money back from your bank account. Now tell us why we shouldn�t have., rather than a Retrieval RequestNotification from the bank that says, �This customer is disputing a charge. Please send us documentation so we can evaluate the legitimacy of the charge.. Once a chargeback has posted to a merchant's account, the damage is done. Even if a business wins a disputed charge, the chargeback is still applied against their overall chargeback threshold. So even when you win, you lose. Visa/MasterCard's strategy to reduce chargebacks was to lower the acceptable chargeback threshold to 1%. This policy places the burden of chargeback deterrence on the merchant. Reduction of the chargeback threshold dramatically reduced businesses ability to absorb illegitimate chargebacks.

Maintaining an acceptable chargeback rating under these strict guidelines can be nearly impossible when considering how easy it is for customers to chargeback. Fortunately, there is hope for the merchants. Chargeback Guardian has implemented cutting edge tools that enhance a businesses ability to prevent chargebacks on the front end, while more successfully managing chargebacks on the back end.

  • What if you could prohibit the use of card types that had a history of easy chargeback allowance?
  • What if you could significantly reduce the two most common reason codes for chargebacks: Fraud and Customer Doesn't Recognize the Charge?
  • What if you could expand the types of payments you currently offer and reduce your chargeback liability at the same time?
  • What if the processes outlined above were automated?
PROTECT REVENUE

Safeguarding your ability to process:

Since Chargebacks are monitored by Visa/MasterCard and are the primary reason for merchant account closure, the prevention of chargebacks is the first, and most effective step businesses can take to protect revenue.
While Chargeback Guardian's prevention measures are revolutionary and extremely effective, it is still important to keep in mind that not all chargebacks can be prevented. Understanding this reality has motivated Chargeback Guardian to develop safeguards against chargeback claims that could otherwise compromise a businesses ability to process.There are three main areas where businesses can, and often do, lose revenue due to credit card processing difficulties.

  1. Chargebacks: The cost of bank fees and lost revenue due to the chargeback of legitimate sales.
  2. Merchant Account Closure:The devastating loss of sales processing capabilities. This condition is the ultimate revenue killer. Merchant account closures are notoriously the hardest of the three categories to recover from, especially if the business owner is placed on the Terminated Merchant File or Match file.A list kept by banks and processors as a way to warn each other of businesses that have in one way or another violated their merchant agreement
  3. Refunds: The cost of liberal refund policies businesses implement in an attempt to reduce chargebacks.

Most merchants are aware of these expenses and simply resign to the fact that they are inevitable costs and risks of being in business.

Chargeback reduction can be exponentially beneficial to businesses by reducing risks related to merchant account closure. With Chargeback Guardian's help, merchants can finally take a proactive role in protecting their ability to process.

Did you know?

What factors do banks consider when allocating processing volumes?Business type; Business industry; Products or services offered; Average sale amount; Finances of the business; Principle owners� credit scores; Principle owners� finances; Similar business processing history; Merchant account processing statements.

Can my processor/bank close my merchant account even if I haven't done anything wrong?Yes and they do! Processors maintain underwriting agreements and guidelines from a sponsoring bank. Based on a bank�s appetite for risk, those guidelines can, and often do, change without notice. If the bank you are processing with decides to withdraw from your industry, it could mean the immediate closure of your processing account. When this happens, businesses are forced to endure days, or even weeks without the ability to process sales. This circumstance clearly has a severe impact on merchant revenue and in some cases forces complete business closure.

What factors trigger risks flags for processors or banks?Spikes in processing volume, processing larger tickets than account is approved for, and receiving chargebacks in the first month of processing.

Merchant Account Setup: Have you been Setup to Fail?

One of the ways businesses can get into trouble before they even begin processing is by having their merchant account setup incorrectly. Since processors and banks accept liability on behalf of the merchants they process for, they also have the ability to establish their own processing rules and regulations. Even when processors are sponsored by the same bank, they may be subject to different underwriting rules and guidelines. The differences between processors contributes to the habitual changing and misunderstanding of processing regulations. Independent sales offices (ISO) and associated agents do their best to track these inconsistencies and communicate them to merchants; unfortunately, incorrect information floods the industry and contributes significantly to the improper set up of merchant accounts.

How can I tell if my agent is giving me correct information?

Unfortunately, many times you can't tell. There are two major reasons why merchants should clarify the information they receive from an agent or ISO.

  1. Complicated and changing processing regulations make it difficult for agents to provide merchants with accurate information. Information can be made instantly obsolete as a result of changing guidelines. What may be true one day, may not be true another day. And what may be true for one processor may not be true for another processor.

  2. Sometimes misinformation is forwarded as result of the agent trying to board an account within their processor's guidelines. ISOs and associated agents receive commissions through the boarding of new processing accounts and many have no real accountability to processing merchants. When considering this fundamental relationship, it is easy to see how an agent's motivation to make a sale may compromise their ability to ensure the account being setup properly. Agents are notoriously ambitious in their commitment to guarantee businesses a processing account. Unfortunately, this enthusiasm does not always work in favor of the merchant. Some agents may embellish merchant products, modify anticipated processing volumes, skew industry categorizations, etc. These small adaptations may secure initial processing capabilities; however, the setup of a merchant account under false premises set unrealistic expectations for the bank and rarely end well for the business. Sometimes these inconsistencies can even justify a bank in placing a business on the Terminated Merchant File or Match file.

Isn't there a way to make sure my merchant account is setup correctly so I can protect my business from these unnecessary risks?

It is crucial for merchants to assume a proactive role in protecting their processing accounts. We can help. Chargeback Guardian works with respected and reputable processors and banks who have proven their integrity and competency in navigating complicated regulations for both domestic and international processing accounts.

Terminated Merchant File (TMF) or MATCH:

Avoidance and Recovery

A business being added to the Terminated Merchant File can be the most devastating and irrecoverable consequence of chargeback processing complications.

Match was developed as a way for banks and processors to warn each other of businesses that have in one way or another violated their merchant agreement. Since banks and processors are held responsible for withholding information regarding a merchant's risky business practices, they use the Match file as a safeguard against being held liable. Once on the list, Match status is permanent. The only way a merchant can be removed from Match is through the expressed approval of the bank that originally placed them on the list. Obviously, Match reversals are a rare occurrence.

Why is Match so dangerous?

The immediate suspension of processing capabilities is the first and most obvious consequence of Terminated Merchant File (TMF) status. While this is a serious circumstance to face on its own, many merchants are unaware of the additional long-term stigmas associated with the TMF label. The first difficulty TMF merchants face is the restoration of processing privileges. Banks and processors refuse to assume the risk of previously matched businesses or business owners. For this reason, it can be nearly impossible for merchants to regain processing privileges with alternative financial institutions. In addition, the TMF includes permanent databases of business names, owner names, social security numbers, addresses, phone numbers and product names. These histories can permanently plague business owners and compromise the financial security of future business ventures.

What if I am already on the Match list? Do I have any options?

While Chargeback Guardian takes extreme measures to minimize a businesses possibility of being placed on Match, they also extend assistance to those already affected by its limitations. Businesses or individuals restricted by Match may have other processing options. NEVER assume you are out of options. Contact us for more information.

Did you know?

The most common reasons merchants are placed on the Match file?Excessive chargebacks; They owe a processor or bank money for fees, refunds, or chargebacks; They are processing for a product different from what the account was underwritten for; They are aggregating or factoring for business not otherwise included in their merchant application.

PROCESS

Although a chargeback cannot be removed once it has been posted to a merchant account, it is still important for businesses to respond to most chargebacks. While there may not be immediate or complete financial restitution afforded to the merchant, these efforts remain an important indicator to merchant account sponsoring banks. A businesses commitment to responding to chargebacks shows the bank that they believe they are running a legitimate business, they believe in their product or service, and they believe they are due the revenue lost from the disputed transaction.

Chargeback Guardian utilizes a highly technical system designed to automate the appeals process. While there are a large variety of companies and products on the market to assist businesses with chargeback disputes, Chargeback Guardian remains the most comprehensive, proactive, and effective system available. These smart solutions consider the merchant's "big picture" and provide insight into general risk management capabilities. Chargeback Guardian's appeals system is unique in that it addresses and reduces fundamental problems associated with chargeback management rather than focusing solely on damage control.

A few of Chargeback Guardian's comprehensive chargeback fighting tools include:

  • Analysis and reporting of entire sales cycles: Starting from where a sale was generated and finishing with its ultimate result (sale, refund, or chargeback)
  • Respond to and dispute most chargebacks: Average successful appeals rate of over 70%

Did you know?

Why is it so important to implement chargeback and processing safeguards?Without implementing safeguards for fraud and chargeback protection, you leave your company open to possible fines and even having your Merchant Account closed.

Contact us for more information
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