If you’ve heard about chargeback prevention alerts, there’s a reason why. Simply put, they help merchants reduce risks in a very big way.
Prevention alerts are mainly used to resolve consumer disputes before they result in chargebacks. Rather than being surprised by a chargeback and negatively impacted, banks will communicate directly with merchants in real time about a complaint.
The issuer will then give the merchant a chance to provide a refund rather than going through the negative impact of chargebacks on a merchant’s record.
You may have heard of both Ethoca and Verifi, as they are the two main prevention alert networks. Merchants have highly benefited from the way they work and how they keep them ahead of the game.
The following will better help you understand what they do and when/how/if they can benefit your company.
The technology was originally created to help merchants resolve issues that are non-fraud related in nature. When merchants lodge a complaint or claim, Verifi connects banks and merchants to simplify the process in important ways.
Verifi has a strong presence in the US and has been expanding throughout the world.
This technology was originally created to help merchants resolve legitimate credit card fraud issues. Like Verifi, it has a strong presence in the US and has a strong international presence.
It’s important to understand that both services have their own key benefits. Your choice should highly depend on what type of business you are running.
Use Verify in these cases:
Use Ethoca in these cases:
Consider using both in these cases:
The issuer notifies the alert provider when a dispute is submitted.
The alert provider sends a message/alert to the merchant.
The merchant can refund the original transaction and lets the alert provider know that they took the appropriate steps to resolve the issue.
The alert provider lets the issuer know that the dispute was resolved.
There are many benefits to technologies like Verifi and Ethoca. Not only can they give you peace of mind knowing that you’ll always be one step ahead of the chargeback process, they can save you large sums of money over time.
The systems also offer quite a bit of flexibility where setup is concerned. You can integrate directly with Ethoca and Verifi or work through a preferred partner who can oversee the implementation of the technologies and your current system.
If you’re on the fence about using Verifi, Ethoca, or both services. It’s important for you to look closely at your current setup and how it’s either benefiting or hurting you where chargebacks are concerned. In the case that you’ve had some frustrating moments with chargebacks, you should definitely consider one or both of them.