Being in the high risk arena, chargebacks are a part of daily operations. Friendly fraud is a phrase that gets tossed around by those of us too close to the blackboard. Friendly Fraud is when your customer decides they dont want to pay for, in the high risk marketplace, a membership they enrolled in - or maybe they forgot the membership fee was going to reoccur - and rather than contacting you, the business owner, or your customer service team, they call their credit card company and say they dont know what the charge is or that they didnt authorize the charge. The credit card company, of course, issues a chargeback on the transaction (and sometimes all the transactions prior to that) and not only are you out the cost of the transaction, but theres the $30 (sometimes higher) chargeback fee thats assessed for each chargeback. Four $25 transactions turns into a loss of $220 when all is said and done.
What if there was some way to prevent chargebacks from happening? Would you use it?
MobiusPay offers a chargeback monitoring and prevention solution which can be customized to suit your needs and the notifications are delivered in real time. When a cardholder issues a chargeback on a transaction (even if the transaction being charged back isnt yours), our system will notify you if youve run a sale on the credit card number in the last 180 days at which point youll have the option to refund the transaction (and at least save yourself the chargeback fee and count against you for the month) or give you the opportunity to prove that the transaction is legitimate and should not be charged back. The best part of all of this is not only are you saving money, but the service fee only applies for transactions that come in through our system. There is no monthly service fee or commitment to use this service. Click Here Here to learn more about our chargeback management service today.