Solving the Chargeback Issue for your Merchants – At Scale

Written by PayShield

July 8, 2024

Chargebacks have become a key issue for all companies providing payment services. While an especially large issue for those working in High Risk, or with exposure to high risk, it’s an issue that affects all processors, payment providers, ISO’s and Merchant Aggregators to some extent.

It takes effort and resources to bring on new merchants and to lose those merchants because they become financially overwhelmed by chargebacks, or sadly lose their merchant accounts due to an excessively high chargeback rate, is a hit to all your efforts.

Excessive chargeback rates are also an issue for your own business. Potentially raising points of tension in your banking relationships and with your upstream providers.

Education is one part of helping your merchants but there is definitely more tangible steps that can be taken. Steps that both help your merchants, protect your business and open up new revenue streams for you and your company.

There are a lot of third party providers feeding off individual merchants while accruing the benefits of their volume arrangements for themselves or for key accounts.

Managing these external systems simply creates yet another business relationship for merchants to maintain. Why force them to develop and maintain yet another business relationship when, instead, they can leverage an existing relationship and work with your team instead?

You and your organization can become your merchants supplier of chargeback alerts. Leveraging your scale and buying power to obtain wholesale chargeback alert pricing and then reselling those alerts to your merchants at a price that works for you and for them.

Allowing third parties to deal directly with your merchants with no input from you or your organization means the messaging they’re receiving suits only the third party group. The guidance you are supplying to your merchants on dealing with chargebacks can be drowned out or in some cases, overruled by the third party.

You might have guidance from your banking relationships and upstream providers on particular ways that chargebacks should be handled. Properly using chargeback alerts and quickly refunding disputed transactions may be key parts of this guidance.

How does that sit though if your merchant is working with a third party provider that heavily pushes fighting chargebacks? In this instance what’s best for you, your merchant and your partners could be taking a backseat to the fact that the third party provider encourages merchants to focus on chargeback representment.

There is even now ongoing investigations of some of these businesses. Indicating that in some extreme cases third party providers may have been encouraging merchants to commit fraud when supplying transaction evidence for representment. This has definite long term implications for any merchants succumbing to the temptation of this behaviour. The fallout from such actions could cause merchants to see reduced transaction volumes or even for them to lose their merchant accounts.

You can help your merchants and help you and your business by reselling chargeback alerts to your merchants directly. Becoming a chargeback alert reseller allows you to become their source of all chargeback alerts and the primary source of guidance on how they should best handle chargebacks.

Supplying them with alerts and providing them with guidance on how to deal with chargebacks helps ensure they are aligned with your views on best practice. This helps protect them, you, your business and your banking relationships.

It also means they can have a trusted source of chargeback management services. That source being you and your company. They get to work with you, an established and trusted relationship, and put in place chargeback management processes that fit with your, and your banking partners, guidance.

It’s important not to forget what a huge win supplying your merchants with chargeback alerts is for your business. You are adding a completely new stream of revenue and a new, and very attractive, feature to your business offerings.

As a reseller you buy chargeback alerts at wholesale rates and then sell those alerts to your merchant at a competitive market rate. The gap in your buy price and your sell price goes straight to your bottom line allowing you to increase your revenue per merchant while also providing your merchants with valuable chargeback mitigation services.

Becoming a reseller of chargeback alerts can be a very simple and quick process. Depending on your preferences you can be set up rapidly and, in most cases, without any development work required by your always under fire development team.

The first step is finding a company that can work with large scale businesses and in particular business that can handle an organization that provides payment services to merchants. Many companies work specifically with individual merchants and are not particularly well suited to assisting a Payment Services Provider, ISO or Merchant Aggregator.

When looking to become a reseller it is best to work with specialists. Companies who already provide this service to other businesses similar to yours and who are experienced in setting up and managing such accounts. It’s also important to ensure the company you work with has an exceptionally well developed relationship with the key Chargeback Alerts Providers, Ethoca and Verifi.

Our company, PayShield, is one such company. With strong relationships with Ethoca and Verifi and a wealth of knowledge in solving Chargeback Mitigation for high volume businesses. We’ve helped many Payment Service Providers, ISO’s and Merchant Aggregators provide their merchants with chargeback alert services at scale. Creating new streams of revenue for them and protecting their business from potential the pitfalls of poorly handled chargebacks.

If you’d like to talk to a member of our team and see how PayShield can help you provide chargeback alerts at scale to your merchants then please reach out to us via our contact us form.

Featured Articles

What is Chargeback Fraud? Tips and Strategies for Loss Prevention
What is Chargeback Fraud? Tips and Strategies for Loss Prevention

Chargeback fraud is a growing concern in the eCommerce world, affecting businesses of all types and sizes. This deceptive practice can severely impact a business’s financial health and reputation if not properly managed. But what exactly is chargeback fraud, and how...

3D Secure 2: Realizing the Unfulfilled Promise of 3DS1
3D Secure 2: Realizing the Unfulfilled Promise of 3DS1

In the fast-paced world of online commerce, security is paramount. Enter 3D Secure, an authentication protocol designed to add an extra layer of protection for online card transactions. While 3D Secure 1 served its purpose, it was riddled with issues that frustrated...

Get started

Reduce your chargebacks and increase revenue.

Get started

Reduce your chargebacks and increase revenue.