In functioning an online business, chargebacks are one of the primary issues merchants need to face during payment processing. But there are multiple ways to eradicate them. Proper management of the business’s website and good customer assistance plays a vital role in this. This blog specifies Ethoca Alerts Services. We will describe what is a chargeback, how it functions, how it can affect an online business and why a customer claims it. After all these factors, we will discuss ethoca alert services and how they can assist in controlling chargebacks.
What do you mean by a chargeback?
A chargeback occurs when a customer asks refund of money through their bank but not via the merchant’s website. This refund can occur if the delivered product or service does not fulfill the customer’s expectations.
What is the procedure for a Chargeback?
How does a chargeback occur?
- A customer accepts a product or a service but did not get satisfied with it.
- They contact their credit card issuing bank to claim a chargeback.
- Then a customer delivers a valid of the issue, basically by presenting photos or screenshots with a written description of the issue.
- The dispute is then transmitted to an issuer.
- After that, an issuer provides a reason code for a specific case.
- The issue is being examined by an issuer when your funds are stuck.
- The complete details are sent to an acquiring bank of a merchant and are being examined there also.
- Then a merchant also accepts the dispute’s detail and examines also, along with an option to deliver proof for their security.
- The issuing bank of the customer accepts details and proof from both the merchant and acquiring bank.
- An issuing bank will take a decision on the basis of all details either in the favor of a merchant or in favor of a customer.
|In favor of a merchant||In favor of a consumer|
|For a merchant||A merchant holds money paid by a consumer without any effects.||A merchant needs to return the money, spend a chargeback cost to its acquiring bank, and not get the product.|
|For a consumer||A user does not receive a financial refund but holds a bought product or service.||A consumer receives the refunded amount and also with a bought product.|
How can a refund be a better solution?
Primarily, for a customer, a chargeback refers to the return of funds due to the product or services not fulfilling specific anticipations. But for a merchant, a chargeback has a completely different outcome than a standard refund. As we have stated above, if a dispute is translated in the favor of a customer, a merchant can face a great loss.
That is why one of the most suitable solutions is to make it very easy for a customer to ask for a refund. A refund implies an easy return of funds. So for a customer, the result would be very similar in both situations. Whereas a merchant, for example, would not require to spend an additional amount of money to its bank and could take a product back. And would maintain its financial image at the top level.
The list of some primary chargeback causes
- Personal errors of a customer can be the wrong product purchasing or providing the invalid delivery address
- Website concerns can lead to some additional purchases or invalid product sales
- Delivery concerns can imply a receiver of an invalid product or do not receive the ordered item
- Quality problems mean a product issue concerning the way it operates and the way it appears
- A friendly fraud situation is when a customer submits a fake chargeback reason to get a refund.
Get chargeback protection with the Ethoca Alerts Services
To decrease the chargeback volume, a merchant can take assistance from Ethoca Alerts Services. Ethoca Alerts Services are used for chargeback reduction or prevention. And also deliver a merchant the possibility to shift a chargeback into a simple refund by sending a common solution to a disappointed customer directly. Recently, MasterCard is an Ethoca Alerts parent company.
What is the functionality of Ethoca Alerts Service?
Let’s see how it functions, when a customer files a dispute, an issuing bank does not process it but transmits a notification to Ethoca. Ethoca Alerts then informs a merchant about transferring the customer’s details. A merchant then has 24 hours to connect with a specific person. Find out the details of the problem, and deliver a correct solution. If a merchant accomplishes nothing, the chargeback flow goes generally. You can also prefer the most secure and reliable offshore merchant account to process all your global transactions with a chargeback prevention system.
How can you get the Ethoca Alerts Services With Your Payment Processing Solution?
To get the protection of Ethoca Alerts with your high-risk merchant account in Europe, we suggest collaboration with WebPays. WebPays is a top leading global payment gateway provider that delivers merchants’ best payment processing solutions for their global businesses functioning globally.
With WebPays, a merchant can get an international merchant account in the Netherlands, and integrate a payment processing platform into an online website. And also get Ethoca Alerts and fraud prevention tools for enhanced business security. Apart from that, WebPays offers dedicated support to every merchant. So there will be a proper customer support system that actually understands your online business. For further details regarding online payment processing services and how fast you can get the best solution. You can drop us a mail with your business requirements.