Chargeback Fraud Alert and Prevention – As we have discussed in most of our previous articles that getting a frauds alert system can protect you against chargeback fraud. If you are a merchant and you suspect that you are being a victim of fraud or identity theft then this article is for you. Chargeback Fraud Alert and Prevention can help you save a lot and earn a greater profit than before. Once you understand the alert techniques, you will know that getting a chargeback alert can help you fix the dispute before it causes any harm.
How Chargeback Alert Works?
Nowadays, many merchants are getting a chargeback alert system to their transaction system. When a customer initiates a chargeback to the issuing bank, the merchant will receive an alert rather than the chargeback.
This is when the merchant is provided with a window of chance where he can refund the money immediately. Doing this, the merchant avoids a dispute that can change into the chargeback.
If you are a merchant and want a chargeback fraud alert and prevention for your business as well. Then you can contact the Chargeback Expertz, we provide such services to our customers. You just need to place a call at the toll-free number and our executive take you along with our chargeback prevention methods and plans.
Types of Chargeback Fraud Alert and Prevention
There are two main types of the chargeback fraud alert that we are going to discuss in this article blog.
The Initial Fraud Alert
If you are suspicious but not sure that your business is facing some frauds or identity theft then you can try the initial fraud alert.
- The initial fraud alert is valid for only 90 days.
- After 90 days you will be removed from the fraud alert category.
- You can again subscribe the 90 days fraud alert if you still think your business at risk.
- It is ideal for small business or beginners to avoid any kind of transaction frauds.
The Extended Fraud Alert
If you are sure that your identity is compromised and attackers are using it then you should go for an extended fraud alert
- The extended fraud alert lasts up to 7 years.
- But first, you need to file a report at the Federal Trade Commission.
- Then you will be provided extended protection for up to 7 years.
- You get this alert if your identity is compromised.
Why should you get a Chargeback Fraud Alert?
According to the norms of various card networks, the merchant is allowed only a few number or chargeback in a month. If their chargeback-to-transaction ratio exceeded the threshold, the merchant will be subjected to fine. Furthermore, the merchant’s account can be frozen by the acquiring bank. This is one reason to add Chargeback Fraud Alert and Prevention system to your business.
Here some more benefits of the chargeback alert prevention system:
- It intercepts the transaction and highlights the suspicious ones. This helps the merchant to avoid such transactions in the future.
- The alert system also calculated the chargeback ratio or chargeback rate. This helps the merchant to keep their chargeback number in the limit.
- Fraud alert and prevention system also maintain and improves the payment mechanism of your business.
Limitations of the Chargeback Fraud Alert
The chargeback fraud alert and prevention helps the merchant to improve their merchant identification number (MID). But there is some limitation to the chargeback fraud alert that needs to handle by the merchant on their own.
Here is a list of limitations of the chargeback fraud alert:
- It cannot defend the merchant from all the chargebacks
- The alert system cannot identify and solve the dispute automatically
- The system is not helpful to maintain the merchant’s reputation
- It does not stop the customer from filing the dispute
- Merchant will get the lost revenue back
Yet, the provided benefits of the Chargeback Fraud Alert and Prevention can help the merchant on many levels. This is why we recommend our customer to get the alert system for their business.
Feel free to contact the Chargeback Expertz and get more information related to the topic. Moreover, get tips and tricks to tackle the Chargeback Representment in your enterprise. You can reach us using the toll-free number or try the chat via Skype.