MobiusPay Dispute Resolution

Intercept Chargebacks Before They Happen

Order Insight^®By Visa

Issuing banks and cardholders can access detailed transaction information from sellers via the global data-sharing network to prevent chargebacks, or disputes, from the first inquiry. Order Insight extends a business’ customer service to issuing banks’ call centers, which helps reduce cardholder or billing confusion by being able to get transaction detail in real-time while the cardholder is on the phone with the issuing bank’s call center. Instant resolution helps prevent brand damage and loss of customers.

How Order Insight Works:

The cardholder contacts their issuing bank with a transaction dispute
The issuing bank sends a request for order detail information through the global data-sharing network
Order Insight processes the request and sends the request for information to the seller
The seller sends order/transaction detail back to Order Insight
Order Insight relays the order/transaction detail to the issuing bank
The issuing bank reviews the order/transaction detail with the cardholder thereby preventing a chargeback, or dispute, from happening.

Ethoca Alerts by MasterCard

Ethoca Alerts is a collaborative tool that connects merchants, acquirers and issuers together to share fraud and dispute data, enabling a faster dispute resolution process that reduces the need for chargebacks altogether.

How Ethoca Alerts Works:

Issuer notifies Ethoca of confirmed fraud or dispute.
Ethoca transmits an alert to the merchant.
Merchant stops fulfillment and refunds customer to avoid chargeback.
Ethoca transmits alert outcome to the issuer.

Fight Chargebacks

Having the ability to accept credit card payments for your business is a necessity. The internet has become the preferred way for people to shop conveniently all over the world. However, you mustn't encounter a high number of chargebacks. Stopping chargebacks before they happen saves you time, money, and hassle. The team at MobiusPay has developed effective chargeback prevention strategies that move you from defense to offense.

A chargeback occurs when a buyer contacts their credit card issuer and disputes the charge. Cardholders obtain their credit cards from their "Issuing Bank," which allows them to file complaints regarding fraudulent transactions on their statement. The issuing bank will then investigate the grievance.

If the transaction is determined to be fraudulent, the issuing bank will refund the original value to the cardholder. As a merchant, if you cannot prove that the transaction was legitimate, the bank will take back the entire amount of the purchase from your merchant account, accompanied by a surcharge. If the complaint made by the cardholder is shown to be false, the merchant is not required to refund, but there may be additional processing fees. The reason why chargebacks should not burden your business is self-evident. These situations put you at risk of losing profits from services and products that were already paid for. Plus, there may be further payment processing fees, chargeback penalties, and additional currency conversion commissions.

Reasons for Chargebacks

You need to be aware of the most common reasons why merchants receive chargebacks. These circumstances must be identified and avoided. MobiusPay has a dedicated team that can provide you with the protection you need to prevent these chargebacks.

Fraudulent Transactions

The internet is the go-to place for consumers to find information on services and goods and purchase them from the convenience of their homes. However, if you are not using a service provider that will protect your customers' financial and personal information, sensitive information could easily be used without authorization. When fraudulent transactions occur, the merchant is held responsible.

Credit Was Not Processed

Another common type of chargeback occurs when merchandise is returned. The purchaser requests a refund but claims that their account was not credited. Merchants are also held solely responsible in these types of situations.

The Items Were Not Received

Alternatively, a customer may claim never to have received an item they paid for with their credit card. This is yet another situation where the merchant would be charged accordingly.

Technical Issues

Many chargeback requests are the result of technical problems during the payment process. For example, if there is an issue between the merchant and issuing bank, this may lead to consumers being charged twice for the same transaction (duplicate processing). Sometimes, there can be glitches in the authorization process. These types of issues might lead to a cardholder's account being charged, even if the transaction was declined.

Other triggers include faulty credit cards or simple human error during the payment process. Both of which are beyond your control as a merchant.

Chargeback Prevention

Merchants all around the world dread chargebacks, and rightfully so. Even though chargeback cases can be won with proper evidence, the appeals process is time-consuming. That is why it's always better to prevent rather than dispute.

Honesty is key. As a seller, always be sure to deliver on your promises and maintain excellent customer service. This way, customers will not feel the need to complain to their issuing bank if there is an issue. Moreover, it is essential to prevent unauthorized and fraudulent transactions. Here are some red flags indicating possible fraud:

Orders that are made using free email addresses
Several orders made using different cards but delivered to one address
A lot of other orders made within a short time
Multiple failed attempts to enter expiration date or card number
Different delivery and billing addresses
Orders for high-value ticket items
Bulk orders that seem to go beyond the typical range
Orders demanding rush or overnight delivery

Your business needs to use a merchant service provider with a qualified team that helps evade chargeback situations. Not only will this save your business money and time, but it is also crucial for ensuring business growth.

Chargeback Mitigation with MobiusPay Fraud Alerts

MobiusPay Fraud Alerts stops chargebacks before they happen. Chargebacks are frequently considered an inevitable 'cost of doing business.' Many merchants believe there is nothing they can do about them. However, that's not entirely true. Aggressively preventing chargebacks from occurring and recovering funds lost should be a priority for every merchant. A business owner can use several procedures and strategies to reduce and recover the costs of chargebacks. Improving the process and workflow of the transaction from beginning to end will be the first step. Including a URL or a contact number in the descriptor field on transactions is undoubtedly a good start but several other variables need to be taken into account:

With our Fraud Alerts tool, you can now:

Get real-time notifications
Instantly resolve disputes before they become chargebacks
Reduce your chargeback ratio as most disputes won't even become chargebacks
Lower operating expenses - arbitration cases alone cost hundreds of dollars

Now that EMV (Europay, Mastercard, Visa) is widely adopted, there is a growing potential for a rise in CNP (card not present) fraud. Let our Fraud Alerts tool protect you and your business today!

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