Are you a business owner who accepts payments online? Do you worry about losing income due to fraud? If so, your concern is valid.

Jaromir Divilek, Executive Vice President of American Express reported results from a merchant survey. It found that about 77% of businesses suffer some form of fraud. Of these, fraudulent chargebacks accounted for 36% of the cases.

One key point showed that merchants feel vulnerable to payment fraud. Taking advantage of chargeback guarantee services decreases the business’ risk. This can decrease your fear of fraud.

Keep reading to learn about chargeback guarantee solutions available to help your business.

Fraud Prevention

Battling fraud presents an ongoing challenge. The target is always evolving and moving. Experts report that e-commerce fraud activity has grown twice as fast as online sales. This means business owners must be educated and find solutions to combat this threat.

Understanding Chargeback Fraud

A chargeback occurs when a customer asks the bank to return their money after buying a product. The rationale may be that the item wasn’t what they expected. Most of these requests have no fraudulent or malicious intent.

Yet, if the customer knowingly lies about the transaction to make money, it becomes fraud. Several industries have a high rate of chargeback fraud.

Examples include clothing, furniture, high-end merchandise, and digital products. Items that are easy to resell, such as electronics, present a prime target for thieves.

Merchants rank chargeback fraud as the fourth most feared type of e-commerce fraud. In fact, online businesses lose $3.94 for every $1.00 due to fraudulent chargebacks.

To make matters worse, 40% of these thieves will repeat this activity within 2 months. Then, 50% of them will file for a chargeback again within 3 months.

Chargeback Guarantee Protection

Today, companies can find protections by using chargeback guarantee services. These programs offer the following benefits:

• Increased cost predictability
• Better management of cash flow
• Reduces worry when expanding into new markets with higher risks
• Increased confidence in your return on investment

Often, services charge a fixed percentage for each sale regardless of the true chargeback rate. This is different than traditional billing by card, not present (CNP) fraud providers. These companies’ transaction fees vary based on sales volume plus unpredictable chargeback costs.

Fraud protection uses a wide array of tools and devices tailored to your type of business. E-commerce fraud protection, for example, employs many data-driven solutions.

Machine learning is now a big part of fraud prevention. Monitoring systems collect data about customer's buying, typing, and screen swiping patterns. The business receives a notification of suspicious activities.

These services also watch order and chargeback histories, payment information, and blacklists. Using real-time decision making via digital transactions protects the merchant.

Multi-factor authentication and other smart authentication levers help prevent fraud. This is valuable with P2P, top-ups, money transfers, CNP/CP, e-wallet, and ACH payments. With chargeback fraud payment protection, you can eliminate risk and liability.

Are You Looking for Payment Fraud Protection?

This article described ways to reduce fraud concerns using a chargeback guarantee service. Vesta solutions offer a 100% chargeback guarantee.

For 25 years, Vesta Solutions has protected businesses with our patented AIML technology. You’ll benefit from CNP fraud prevention and zero liability. Our real-time decision making and protection allows you to focus on your business.

Contact us today to request a demonstration and see how we can decrease fraudulent revenue loss.