Guarantees
are the most sought-after feature people look for in sales, and when a
Chargeback guaranty is given upon a merchant account that’s more of what the
merchant has asked for, but how it is showcased may be a facade.
Chargebacks
are never cured completely 100 %. It is not like a chargeback alert service but
more like reimbursement to you when a chargeback like an insurance policy
hits you.
The
chargeback ratio for a high-risk business is different and cannot be given a
100% risk-free environment to a merchant. Issuing chargeback guarantees breaks
the bond in between partnership from the merchant to the customer, merchants want
to maximize accepted transactions and minimize the chargebacks.
3 cases
where the chargebacks are reimbursed by the chargeback solution provider.
1.The
chargeback reimbursed is greater than the fees charged.
2.The
chargeback reimbursed is equal to the fees.
3. The fee is
higher than the chargeback reimbursed.
Let’s
discuss the cases in detail.
Case 1 and 2
The
chargeback reimbursed is greater than the fees charged.
Unsustainable the situation for a merchant and a merchant should be aware of their fees are
increasing at some point.
Case 3
In this case
it's more than clear that a fraud prevention company is keeping refusal rates at
maximum levels, which is costing the merchant more and increasing their revenue
directly.
Keeping
these things apart from their few benefits for the merchants who are into small
e-commerce merchants, retail merchants, startups and merchants, processing for
high margin goods.
If your fraud prevention vendor spends on
refunding many chargebacks, they have every odd in their favor to decrease
their frequency – even by risking more false positives.
Chargeback
Expertz
Chargeback Expertz
gives you alerts in advance which acts as a notice in prior. To know more, call
us anytime at the toll-free number i.e. +1 855-465-4723 or visit chargebackexpertz.com
for the same.
