Take Control of Your Chargebacks, High Risk Merchants!
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.