Chargeback Alerts 101
Chargeback Alerts can be considered as the latest tool, which is being used to track and manage chargebacks in a convenient manner. If you are a business owner, it is important for you to have a clear understanding about Chargeback Alerts, so that you can incorporate them to your business if appropriate.
What exactly are Chargeback Alerts?
Customers who make payments using credit cards can open disputes due to many different reasons. These disputes are a frustration for the business owners. Chargeback Alerts can assist such business owners to stay away from frustration. That’s because Chargeback Alerts would notify the businesses immediately when a customer opens a dispute. Then you will be able to withdraw the disputed funds from the bank account of your business. In such an instance, the funds would be held until the dispute is resolved. In other words, you would be provided with time to prove that you received the funds via a legitimate sale. Or else, you can go ahead and provide a refund to the customer. This can assist you to stay away from significant losses in the long run.
Are Chargeback Alerts effective?
It has been identified that Chargeback Alerts are in a position to capture only about 40% of the total chargebacks. That’s mainly because these alerts are obtained directly from the bank of your customers. Only 40% of the banks have subscribed to the Chargeback Alert services. However, this concept is gaining popularity among banks and the probability of receiving Chargeback Alerts is expected to increase in the future.
What should you do when you receive a Chargeback Alert?
When a Chargeback Alert is received, you will only be able to provide a refund to the customer. However, there are some merchants who think of it as a warning, which is provided for them to work with the customer and resolve the dispute. However, such a situation is never going to work and it would be a good idea to offer a refund to the customer.
What is the role played by Chargeback Alerts?
When you go ahead and offer a refund to your customer, the chargeback process would be stopped. As a result, you will not receive any charges from the credit card processor. Or else, the funds would not be withdrawn suddenly from your bank account as well. Moreover, your credit card processor will not have to experience any negative impact. However, it is important to keep in mind that the Chargeback Alerts are not in a position to deliver the best possible solution to all sorts of businesses.
Contact Us: To discuss your best strategy against chargebacks. Protecting your payment processing and avoiding a merchant account termination is the key to continuity.