Take Con­trol of Your Charge­backs, High Risk Mer­chants!

ISO & Agent - - HIGH RISK MERCHANT - Srii Srini­vasan, CEO and Co-founder, Charge­back Gu­rus

Charge­back Gu­rus pro­vides a com­pre­hen­sive ap­proach to help you man­age charge­backs and fraud! We use the lat­est tools and pro­pri­etary tech­nol­ogy to com­pile easy-toread re­ports com­bined with our in­dus­try ex­per­tise to pro­duce an ef­fec­tive plan for risk mit­i­ga­tion. We have helped high-risk pro­file mer­chants re­cover over $150 Mil­lion in lost rev­enue and sus­tain busi­ness growth.

What is a Charge­back?

Charge­back is a process where the card holder files a dis­pute with their is­su­ing bank. When a charge­back is ini­ti­ated by the is­su­ing bank, the ac­quir­ing bank no­ti­fies the mer­chant about the cus­tomer dis­pute and the trans­ac­tion amount is au­to­mat­i­cally de­ducted from the mer­chant’s bank ac­count.

How do you Avoid Charge­backs?

E-com­merce busi­nesses should con­sider the fol­low­ing to avoid charge­backs: 1. Of­fer prod­ucts and ser­vices that cre­ates true value for cus­tomers 2. Be hon­est, trans­par­ent, and eth­i­cal with your mar­ket­ing and billing prac­tices 3. Pro­vide ex­cel­lent cus­tomer ser­vice with has­sle-free re­turns and ex­change pol­icy 4. Ship prod­ucts on time 5. En­sure cus­tomers can eas­ily track your trans­ac­tion and reach out to you if needed

Why Does a Pro­ces­sor Care what a Charge­back Ra­tio Is?

The charge­back ra­tio de­ter­mines the risk level of your busi­ness: the higher your charge­back risk, the lesser your chance of get­ting a mer­chant ac­count. Pro­ces­sors usu­ally pre­fer to work with busi­nesses that of­fer prod­ucts and ser­vices that pro­vide value and sat­is­fac­tion for their cus­tomers. Hav­ing cus­tomer sat­is­fac­tion di­rectly de­creases the chance of charge­backs and there­fore poses less risks for pro­cessers. The tol­er­ance level of a charge­back is 1% for low-risk busi­nesses and it can range any­where be­tween 2% - 3% for high-risk busi­nesses.

How do you get a Higher Pro­cess­ing Vol­ume Limit?

Higher pro­cess­ing vol­ume can be ob­tained: 1. If you have a clean pro­cess­ing his­tory with a charge­back thresh­old of 1% 3% or less for at least 6 months 2. If you can pro­vide ex­pla­na­tion and proof of your need for a higher pro­cess­ing vol­ume to pro­ces­sors

What Rates Can You Ex­pect as a High-risk Mer­chant?

The rates for high-risk busi­nesses are based on the fol­low­ing fac­tors: 1. Busi­ness risk 2. Type of Mer­chant Ac­count (On­shore, Off­shore) 3. Monthly Pro­cess­ing Vol­ume 4. Av­er­age Trans­ac­tion Amount 5. Type of Billing (Straight Sale or Re­cur­ring Billing) 6. Sale Type In­ter­net or MOTO (Mail Or­der Tele­phone Or­der) The rates can range from 3%– 5% for on­shore mer­chant ac­counts, and 5% - 12% for off­shore mer­chant ac­counts in ad­di­tion to other fees.

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