Reality Check For Chargeback Guarantee
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.
Issuingchargeback guarantees break the bond in between partnership from the merchant to
the customer, merchants want to maximize accepted transactions and minimize the
chargebacks.
The
chargeback ratio for a high-risk business is different and cannot be given a
100% risk-free environment to a merchant.
The
chargebacks, which are reimbursed by the chargeback solutions providers, can be
classified in three cases:
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.
Instance
1 or 2: The unsustainable situation for a merchant and a merchant should be aware of their
fees are increasing at some point.
Instance
3: In this case its
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.
One of the
biggest flaws in the chargeback guarantee model result in a conflict of
interest. 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
ChargebackExpertz a tree where you get a solution for every problem. Come and enjoy beautiful journey of your life. Call us at : PHONE +1 855-465-4723 or mail us at
EMAIL: app@chargebackexpertz.com.
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