Accepting online payments is quite easy and acceptable these days. But have you tracked the impact of chargeback on your business?
An increase in online payment leads to a gradual increase in chargeback fraud but a merchant no longer needs to accept this fact. This article is thoughtfully written to break this chain by the introduction of the best chargeback management software 2022. There might be a list of questions that are running in your head. Well, the answer for all is right below-
- List of Best Chargeback Management Software 2022
- What is Chargeback?
- Need of Chargeback Management Software
- What is the working of Chargeback Management Solution?
- Key points one should consider while choosing Chargeback Management Tools?
- Types of Chargeback Management Platforms
- What is the difference between Chargeback & Refund?
List of Best Chargeback Management Software 2022
1. Midigator
Every business right from a startup to a well-established company needs chargeback management software for simplifying payment disputes. Midigator is one such top solution for chargeback management of a business with ease. What makes it best? Well, the answer is right below-
Features
✔️ Intelligent Dispute Responses
Midigator ensures high ROI of business with customized fight rules, optimized responses, and economic filters.
✔️ Chargeback Prevention Alerts
This chargeback solution resolves customer disputes promptly before they become chargebacks. Save fulfillment costs, prevent chargebacks, and improve customer satisfaction.
✔️ In-Depth Analytics
An in-depth analysis of chargeback data through several metrics is done. Analysis of chargeback reason and solve disputes at their source.
✔️ Custom Notifications
Midigator doesn’t sleep, so you can! Set custom triggers to notify you of any chargeback concerns across your entire portfolio.
✔️ Account Reporting
Unlimited number of merchant accounts can fetch easy and real-time account reporting through a single dashboard.
✔️ DisputeFlow
DisputeFlow allows merchants to fight chargebacks with just few clicks alternatively reducing the time spent on responses by at least 62.5%.
Pricing
Get in touch with the team for discussing business requirements
2. Chargebacks911
Is your business prepared for post chargeback disputes?
If no, then a solid chargeback solution is right here. Chargebacks911 provides a merchant with all the tools right from collecting evidence, submit it in context of dispute and sift through the data for your own reporting.
Pros
✔️ Chargeback Resources
Chargebacks911 provides dispute resolution letter templates, chargeback reason codes, and much more.
✔️ Reporting
Merchant gets in-depth information including recon reports, win-loss verdict reports, and more.
✔️ Customized Solutions
Chargebacks911 provides customized solutions for both sides of the chargeback issue i.e., prevention and representment. This dual-layer approach not only drives more successful revenue recovery but it also reduces the number of business chargebacks.
✔️ Merchant Compliance Review
Eliminate merchant missteps that may lead to chargebacks
✔️ Chargeback Alerts and VMPI
Stop chargebacks before they’re officially filed.
✔️ Affiliate Fraud Shield
Ensure your advertising campaigns increase revenue, not risk
Pricing
Pricing is available as per request
3. SEON
SEON is one of the leading chargeback management solutions that helps in preventing chargeback before it actually happens. Transaction analysis and user behavior monitoring options can help in getting better solutions for chargebacks.
Some salient features are given below-
✔️ Data Enrichment Modules
Merchant can differentiate whether the users are authorized buyers by looking at the red flags raised by fake email or phone numbers.
✔️ Quicker Risk Management
With SEON, get transparent fraud scores with automated & AI-driven workflow. Its admin panel ensures productivity with widgets and team management features.
✔️ Integrations
SEON plug and play SDK and libraries work with any workflow and tech stack. Productivity and automation can be ensured with Zapier Integration.
✔️ Custom Rules
Your payment team can have complete control over approved and rejected rules of the business. This instantly approves, deny or review transactions according to decided custom rules.
✔️ BIN Check
The BIN check feature only accepts safe cards (such as valid cards, prepaid cards or gift cards) to avoid fraudulent purchases.
SEON Pricing:
SEON paid plan starts at $99 per month.
4. Sift
Sift is another fraud prevention software that offers a chargeback module. The module provides real-time chargeback dispute resolution so a merchant can expect prevention and resolution in one package. Sift has it all, customer rules feature, some customers report that the Blackbox AI can be possibly too opaque. This works as an advantage for small-scale businesses as it is very difficult to think about how to tailor the software as per your preferences. But on the other hand, multi-national companies, however, need more control.
Features
✔️ Chargeback-Specific Module
Sift platform has a pre-built connector to reduce chargebacks which are justified with the acquisition of the company Chargeback.com.
✔️ Fraud Attacks Protection
Sift offers general fraud attack protection tools that work exceptionally for chargeback management, such as KYC and trust and safety.
✔️ Account Defense
Sift protect user accounts, reduce losses from account takeover (ATO), and decrease customer churn without introducing undue friction at login.
Sift Pricing
You can request a demo from Sift & get a tailored package of services as per your business needs.
5. Verifi
Verifi is amongst the best chargeback management software as an innovator and trustworthy partner. The key offering of the platform is that it is a trademarked Cardholder Dispute Resolution Network. Verifi acts as an intermediary between merchants and issuers close the loop during the chargeback process and resolving it directly with the customers.
It speeds up the average resolution time within 24 hours. In fact, it is the most preferable software for merchants and issuers. The approach of providing resolution than prevention brings peace of mind to retailers- especially when the visa is involved.
Verifi Pros:
✔️ Chargeback Tools for issuers
Verifi provided access to their Cardholder Dispute Resolution Network, connect issuers directly with 15,000 merchants to resolve disputes.
✔️ Visa-powered solution
Merchant can trust that card network has every incentive to help you reduce chargebacks.
Verifi Pricing
Get in tough with team for free assessment today. Pricing is as per your business needs.
6. ChargebackGurus
ChargebackGurus have experience of 15+ years in the online payment industry. They know how chargeback occurs, how to prevent and recover lost revenue from past cases.
The chargeback solution claims that they could win 70% of chargeback disputes and thwart 50% of friendly fraud chargeback attempts. The prevention is mostly covered by chargeback alerts on the basis of own risk rules.
ChargebackGurus Pros
✔️ Managed chargeback solution
Business not only pay for the tools but also for the team’s expertise in monitoring and fighting chargebacks.
✔️ Root-cause analyzer
ChargebackGurus data analysis tool collects 40+ data points to understand why chargebacks happen.
✔️ Win-loss analysis
See real-time calculations of your ROI based on won or lost chargeback cases.
ChargebackGurus Pricing:
Schedule a demo with ChargebackGurus team and tell them about chargeback challenges for a best package.
Frequently Asked Questions
What is Chargeback?
When a customer disputes an item to their account statement and transactions report a charge is returned to the customer card which is called as “Chargeback”. A chargeback can be raised against either debit or credit card. These can often take several days to be fully processed and settled as multiple transactions reversal may be involved in this. A chargeback is considered as successful when it fulfills one of the multiple reasons for issuing.
Common Chargeback Disputes
- Customer credit card is stolen and used by some other person to make fraudulent purchases
- Customer did not receive the goods from the merchant or received damaged goods
- A chargeback is considered as successful when the customer has asked for refund or transaction has been canceled due to some reason
- Merchant could have duplicated a charge by mistake
- Charge caused mistakenly due to some technical issue
- Cardholder forgot about subscription renewal and want to cancel it
What is the role of Chargeback Management Software?
Chargeback management software is a tool that bridges up the gap between the merchants and their partners with internal transactional records. These chargeback management solutions help to prevent and fight against chargebacks by syncing internal records, analyzing chargeback data and by successfully integrating with external tools.
What is the working of Chargeback Management Solution?
Chargeback management solutions can be operated by the merchants itself or any chargeback professionals. The smooth working can be ensured by doing some of all of the following-
✔️ Chargeback rates tracking
In case if the chargeback goes above the 1% for all the processed transactions, then it is classified as high risk or even gets blacklisted from the card networks.
✔️ Prevent chargeback
User data monitoring is very essential in order to avoid a chargeback. In this way, you should be able to flag and stop suspicious transactions. By feeding risk rules which output a risk score, this can be done. Merchant can then accept, refuse or review the payment.
✔️ Payment Investigation
Your company must track the chargebacks reasons that often occur through a record of history logs. For a company, it is very essential to know about the reason for a chargeback.
✔️ Chargeback Disputes Solving Features
Your chargeback management system should provide all the evidence through excel sheets, disputes codes, and templates in case the merchant enters any chargeback dispute process.
What key points one should consider while choosing Chargeback Management Software?
What makes a chargeback solution best and worth choosing Chargeback management software is embedded with the following features for ensuring the success of the business-
✔️ Fraud detection
The best chargeback management software does two things- first to identify the user and second to check the fraudulent behavior. This software authorizes the payments initially and stops the payments in their tracks.
✔️ Address Verification Service (AVS)
A solid chargeback solution must have an address verification service (AVS). AVS helps to resolve disputes with major credit card processors. Without this, it is hard to compare the billing address to the address on file for the payor’s account and successfully debate chargeback disputes.
✔️ Credit Card Verification code
Fraud attempts can be detected from the credit card’s security code such as CVV2, CVC2, CID, etc. Payment processors verify the code from the customer’s credit card company, any kind of mismatch displays that fraud has been attempted.
✔️ 3D-secure
3-D secure is a new feature offered by many chargeback management software. This allows you to set a PIN for credit card transactions with a layer of security. It can also be referred as Mastercard SecureCode and Verified by Visa.
✔️ Blacklist
In the Blacklist feature, data is maintained by the fraud detection system of those customers who have raised a chargeback dispute. After integrating the chargeback management solution with your CRM (Customer Relationship Management), merchants can flag orders from the given database. This enables a merchant with the option of identifying fraud charges on the basis of past behavior. You can also use this data to cancel and block fraudulent charges.
✔️ Workflow Management
Multiple processes are handled simultaneously by chargeback solutions for fraud protection. The merchant can focus on developing the best quality product and sell it through eCommerce platforms without worrying about chargeback fraud. Also, you have an opportunity to control and develop your chargeback management software from the types given further in this article.
✔️ Solution integration
Having chargeback management solution with the capability of integrating with other third-party tools and services. This enhances the capability of the software in detecting and preventing chargebacks. Ensure better performance with solution integration options in your tool.
✔️ Chargeback notifications
Chargeback Management platform enables the communication between you and issuers to resolve fraud disputes and their impact on the chargeback rate. An alert is raised on every disputed transaction. This provides a chance to refund the transaction to the vendor and avoid chargeback disputes.
✔️ Chargeback analytics
The more you as a merchant is aware of the reasons of the chargeback, the more you will be able to take progressive action. So, an ideal chargeback management platform is one that offers post chargeback analytics for a better understanding of how chargeback happens accordingly track and reduce its impact on business.
Different Types of Chargeback Management Solutions
▶️ Software (On-Site or SaaS)
When a company outsources a chargeback management software from a third-party software company then it comes under the category of SaaS chargeback management software. This outsourcing tool may be cloud-based or installed within the company premises. SaaS-based chargeback management solution is managed by the company themselves, just development and features are outsourced.
Pros:
- Flexibility and adjustability
- Since you are operating it on your own so you have better control over the whole system
- If you have in-house team of chargeback professionals, then it is an affordable deal.
Cons:
- In case you don’t have in house team then it becomes difficult to operate SaaS based chargeback management software.
- Automation still requires supervision
▶️ Fully Managed Chargeback solutions
As the name implies, some chargeback management companies offer you team of experts along with the tool. Under this category, you are outsourcing the entire team of chargeback experts.
Pros:
- Ensure expertise from professionals
- Requires less staff
Cons:
- As chargeback management expertise is being provided along with the software which makes it more expensive as compared to others.
- As a company, you have no or minimum control over how chargebacks are solved and prevented.
▶️ Hybrid Solutions
If you are confused or unsure about which type of chargeback management software perfectly goes with your business model then you can opt for the combination of both SaaS & fully managed chargeback management software. Merchant has the option to purchase chargeback management tools or outsource the expertise for specific tasks such as dispute resolution.
Pros:
- Maximum control & flexibility over the working of chargeback solution
Cons:
- Merchant needs to carefully plan, integrate & coordinate across systems
- Hybrid chargeback solutions are expensive. The more services you purchase, the you have to spend.
What is the Difference between Chargeback & Refund?
A cardholder often considers chargeback and refund as the same concepts. But, these two terms are two different concepts from a merchant’s point of view. If we talk about a refund then it gives the money-back guarantee to the customer on return of the purchased item.
In case of chargebacks, the cardholder bypasses the merchant and asks the bank to intervene. Merchants bear the loss on the revenue from the sale and merchandise value. Along with this, loss of shipping, interchange shipping charges, and every chargeback fee is also held up by the merchant.
Summing Up
Chargeback management software are specifically designed to prevent a business from online payment fraud. Having a best chargeback solution not only gives you peace of mind but also ensure the safety of the business in case of any dispute.
Every chargeback management platform has different features and approaches to resolve chargeback. This article might have answered your all questions related to chargeback to some extent.
Also, if you have any suggestion related to best chargeback management software then you can reach out us at info@amritsardigitalacademy.in. After research and analysis we would definitely share it with our readers.
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