Cushioning the First Quarter Chargeback Blow

Did you know that the first quarter is one of the highest for chargeback or payment disputes?  This typically comes from consumers feeling buyer’s remorse after the holidays when their credit card statement comes in.  Chargebacks typically trail anywhere from 30 to 90 days, so its normal to see your first quarter rate 10% higher than the rest of the year.  These disputes can throw off your chargeback balance and potentially put you in breach of card brand thresholds leading to fines and penalties.

In her latest XBIZ Column, Cathy shares the latest tools and tips to preventing chargebacks up front and what to do if you exceed the threshold.

“First, don’t panic, Visa and Mastercard both typically allow a six-month workout period,” said Segpay CEO Cathy Beardsley.  “If you’re barely over the limit and not a habitual offender, the card brands sometimes suspend the fines giving a few additional months grace to work your way out.”

To read Cathy’s full column click here.

Common-Sense Tips For Preventing Chargebacks

Create a checklist with these simple tips to help reduce chargebacks.

A chargeback – when a consumer asks his credit card provider to refund a payment – is every merchant’s nightmare. It’s bad enough when a chargeback stems from an actual fraudulent transaction. Worse are the chargebacks that could have been avoided; for example, a consumer doesn’t recognize a charge – or is simply unhappy with a purchase – and calls the credit card company instead of you. You lose the sale and incur fees and, potentially, fines as well. And with too many chargebacks, banks could deem you too high a risk and freeze or even close your merchant account. Your business’s very existence is at stake. The good news: there are simple, common-sense measures you can take today to prevent most chargebacks from happening. Here are a few:

Continue reading “Common-Sense Tips For Preventing Chargebacks”

3-D Secure: Now Helping You Fight Fraud and Save Sales

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SegPay now gives you another tool in the ongoing fight against chargebacks and fraud. In late 2016, we introduced 3-D Secure (3DS), the latest fraud prevention initiative from MasterCard and Visa. 3DS adds an extra layer of security, helping prevent unauthorized use of a consumer’s credit card and potentially freeing you from liability in the case of fraud or chargeback. And, 3DS helps save sales that otherwise may have been declined for fraud – we’re seeing between 2-7% of sales saved, on average.

You may already be familiar with 3-D Secure programs under the names Verified by Visa and Mastercard Secure Code. Purchases by consumers whose issuing banks are enrolled in one of these programs are authenticated by the 3DS system. This happens quickly, and behind the scenes in the vast majority of cases, so consumers don’t see it and there is virtually no risk of a sale being abandoned. In very rare cases where certain fraud indicators are triggered, the consumer is prompted to enter a passcode, which is authorized by the issuing bank. These are the sales that would have been declined, and most likely lost, prior to 3DS.

You can customize 3DS to make your fraud detection more strict in certain cases, strengthening your chargeback protection. Just contact us and we’ll set it up for you.

Once a consumer is authenticated via 3DS, potential liability for any chargeback or fraud shifts to the cardholder – in most cases – and away from you. Note that for subscription products, the shifted liability only applies to the initial purchase and not recurring charges (rebills). This is also the case for One Click purchases. Even in those cases where liability does not shift, 3DS protection means the likelihood of chargeback or fraud is greatly reduced.

Call or email us anytime to learn more!