The law focuses on the risk of businesses getting hacked and the personal data of their clients being stolen. For this reason, any company that accepts payments through credit cards must be PCI compliant. But besides this problem, a business can also suffer losses from a chargeback. And if you do not have a proper defense, then your company will have many hard times. Unfortunately, the standard payment processing methods do not offer you proper tools that you can use to defend yourself.
There are different types of situations in which you will lose money unfairly. Many of them have the potential of creating big financial problems for your company. Even if you are not in a grave situation for the moment, you should still prepare for a potential crisis caused by them. To be able to do that, you need to know what these situations are and what problems your company can encounter. The most common situations are:
- Fraud attempts. Sometimes, you may encounter a customer that will try to fraud your business by asking for their money back after they got their products. If you do not have a proper defense in place, then you may lose both the money and the products. And if a fraud attempt is successful, then you should expect another try in the future from the same person. In some cases, the same person may share the news, and more of your customers will try to do the same. If the situation persists, then your company may encounter cashflow difficulties in the future.
- Stollen cards and card misuse. Another situation where you will have to pay the money back is when someone uses a stolen card. These situations can be genuine, or they can be fake. The good news is that a reliable payment processing company can offer you all the tools needed to avoid both of these situations. By using them, you will protect the interest of your businesses. Not only will you avoid any future troubles. But you will also be able to reduce or eliminate any losses causes right now by fraud attempts of card misuse.
How Does Proper Chargeback Defense Look Like?
Now you know what problems your company may encounter. So, you need to know how the perfect chargeback defense looks like. While searching for a payment processing partner, you need to ensure that it offers you the proper defense that contains a process to help your company become PCI compliant and the following 4 essential components.
- Instant notifications. The standard payment processing alternatives use mails or, at best, e-mails to send notifications to their clients about a dispute that may have appeared. For this reason, a lot of time is lost until the mail reaches you, and you may have lost the dispute implicitly. On the other hand, a reliable payment processing company will notify you through SMS. This will ensure that you get the news as fast as possible, offering you the opportunity to ensure that that the disputes are solved justly.
- Online dispute management. The second component of a strong defense is the ability to manage and solve these problems online. Eliminating the need of making a lot of phone calls and sending a lot of faxes. By using an online method, your team will be able to solve a much higher volume of disputes and reduce the number of lost ones as well. So, the payment processing company must offer this type of service.
- Cardholder authentication tools. You can increase the efficiency of solving disputes through the use of some cardholder authentication tools. Most frauds are based on the assumption that the card was stolen, and the owner didn’t buy anything. But these tools will be able to prevent these situations, and none of your clients will be able to accuse your company in the future. Even those that will try will lose the disputes simply because you have implemented all the tools that will help you prove that the card owner offered access to the card user.
- Assurance. The last piece of the system is an assurance method. Most payment processing companies have other partners that offer their services to their clients. Assurances are one of these cases. You can pay a small amount of money, and you can ensure that every cleared transaction is safe, and you will not lose money even if you lose a dispute. Although you will still have to give the money back, the assurance will cover everything for you.
You Need a Partner That Helps You More Than Becoming PCI Compliant and Offering Proper Defense!
Besides helping your company to become PCI compliant and increasing its defenses, a reliable payment processing company must be able to help you through other methods as well. For example, it can help you through many different tools that will not only increase the efficiency of the employees. But you will also be able to increase the revenue and the number of clients that your company has.
One of the essential tools that you need to get prom a payment processing company is a payment gateway personalized on the needs of your clients. As the name implies, this type of tool will offer your customers several methods through which they can make payments. Not every one of your clients may have a card. If needed, you need to provide your clients with the opportunity of using other types of payment methods as well. The more payment methods that gateway offers, the more potential clients you will have.
And the last essential part of any processing company is the reporting and analytics features. It is essential for your company to always have all the data, including the chargebacks, of your company updated. Who knows when you will need to make an important decision? And the best method to make your choice is to use all the information that you have at hand to ensure that you are going to make an educated decision. Which will have the highest chance to produce the best possible results for your company.