For the merchants: how to avoid chargebacks
So, let’s talk about a chargeback. It is a very frustrating aspect of e-commerce that is inconvenient for both the customer and the merchant. Chargebacks are damaging to the global reputation of the store and the merchant himself. Moreover, the buyer gets a negative experience, no matter what the reason and situation for the chargeback was.
And you should understand that this problem is closely connected to fraud. It is to combat customer fraud that the Ethoca system is designed. This is what we will mourn in this article.
When does Chargeback Happen?
When a consumer calls his bank to cancel a payment, the merchant receives a chargeback. And this will cost the store money and possibly destroy its reputation. Moreover, a disappointed client can leave a poor review. Furthermore, the seller bears the entire expense of the return payment. In addition, the seller should remember that the payment for banking services in the event of a return will also fall on his shoulders.
Unlike Ethoca, not all payment systems provide chargeback protection, although they do restrict the number of chargebacks. If the store goes beyond the limit, it is subjected to a thorough examination. In most cases, such inspections result in an increase in the penalty amount for each chargeback, up to 25 EUR in Europe or up to 30 USD in the United States, or possibly the cancellation of the store’s account or the inability to accept payments from bank cards.
Online merchants and service providers, understandably, aim to reduce the number of chargebacks. While it is difficult to ensure complete protection from chargebacks, they can be kept to a minimum. However, it is possible to get chargeback protection and stop unscrupulous customers. One such opportunity is the solution created by Ethoca company.
This sophisticated system from Ethoca is based on a network where information about buyers and sellers is stored about their transactions and those cases when someone sends money back. This approach by Ethoca allows the company to verify its customer and prevent possible chargebacks.
Quick and easy
It is easy to join the Ethoca system – you can do this if you already have a maxpay.com account or you can open an account and link your eWallet to it and use all the features of the Ethoca system. The tools from Ethoca will help to save your eWallet from unplanned expenses.