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What Is Chargeback Management and What Are Chargeback Defense Solutions

chargeback management

Refunds are becoming a problem every year, especially for eCommerce sellers.The reason for this is fraud with cards and the personal data of potential customers.Sellers are not obliged to work at a loss, so they began to look for ways to repel and protect their income from fraudsters.Chargeback defense can be done by preventing or responding on time to chargebacks. Let’s take a closer look at this.

What is Chargeback Management?

Software refers to a special tool that merchants can use to prevent and combat refunds by managing internal records, analyzing refund data, and integrating with external tools. For example, refund alerts. The chargeback software can be run directly by the merchant or refund specialist. How does it work? A loss recovery process is initiated to prevent future reimbursement. According to the reviews, it helps to apply the skills to more refunds without confusion.

Chargeback Management Software: Types of Tools

Chargeback Analysis

There are several types whose tools help manage chargebacks and differentiate them by price, function, and quality.

SaaS

This service is provided after subscription and monthly payment. Among the advantages: independent control, the flexibility of collateral, loyal price. And among the disadvantages, the fact that you have to spend a lot of time on management, less support from the outside, inconsistency in managing the tool.

Fully managed

You transfer control into the hands of professionals. Among the obvious advantages is that you can save time and effort and be sure that your chargeback process is completed successfully. However, there are also disadvantages. For example, high price and minimal control.

Hybrid Chargeback Defense Solutions

There is a great tool that combines the models of the two instruments described above. You may choose to operate your own chargeback system to identify transactions and chargeback disputes while relying on a full-service company to resolve real-world disputes. You can create the control level yourself and provide the flexibility of the tool. However, coordinating your actions and the company to which you transferred control is not as easy as it might seem at first glance. It also becomes necessary to create additional accounts for your team, depending on the number of services you use.

Credit Card Fraud Prevention Software

Learn how to protect yourself and your finances.

Card Security Code Verification

This tool is also called pre-authorization.Please note that each of your bank cards has a three-digit security code. This code is requested during each of the transactions. If you enter the code incorrectly, the operation will not be allowed. When it comes to preventing chargebacks, CCV verification serves an important function.

3D-Secure 2.0

Like the previous tool, 3D-Secure 2.0 is pre-authorization. Merchants send various transaction details like IP address, device name, etc. to the issuer for verification. In real-time, the issuer can compare the provided data with the data stored by the bank. The transaction would then either be marked as low risk and the merchant can proceed, or it would be identified as high risk and the cardholder would need to take additional verification steps. For example, enter a one-time password. This tool is important because it is a double tool for preventing chargebacks.

Chargeback Analysis

Chargeback Management Software

Analytics is post-chargeback. It identifies patterns and points out hidden problems. This helps determine why chargebacks are occurring so that you can troubleshoot issues at their source. By the way, you can distribute chargeback rates by industry.

Of course, the main features of chargebacks are much more. We have described the most important ones for you. However, if you have any questions, do not hesitate and ask in the comments. We would be happy to help you. Thank you for reading the article to the end. See you very soon on the pages of our blog!

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Author of article

Tatiana Sharapova

Interests: music, finance, cinema, art

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