With the frequency of chargeback issuances becoming a growing cause of concern for merchants, two companies announced an alliance aimed at helping their clients successfully fight back against illegal chargebacks.
Chargebacks911, an internationally renowned leader for risk mitigation, and ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, have entered into a partnership that will assist merchants dealing with fraudulent chargeback claims.
A chargeback occurs when a cardholder disputes a charge on their card. If the bank that has issued the card approves the complaint, it will refund the customer’s money, often without notifying the merchant. In addition, the merchant might be hit with a $25 fee — even if the business owner disputes the chargeback and wins.
According to Finextra, a report by JPMorgan Chase found that the frequency of chargeback issuances is growing at an alarming rate of 20 percent annually. These types of fraudulent claims account for £80 billion in losses each year, with chargebacks accounting for most of that.
A chargeback can be the result of a clerical error, fraudulent charges (such as identity theft) or even the item not arriving or not fitting its description. But there are some customers that make a habit of buying items and then pretending not to recognize the charges later on in an attempt to get free merchandise.
The partnership between Chargebacks911 and ACI comes at the right time, explained Monica Eaton-Cardone, CIO of Global Risk Technologies, parent company of Chargebacks911. Aside from helping merchants challenge a suspicious chargeback, the companies are planning to establish more secure consumer payment methods across Europe and the United States.
“Merchants worldwide want a tactical approach to revenue recovery — one that achieves sustainable growth,” said Eaton-Cardone. “We’re honored the company has recognized our strength in this area, and we look forward to helping these merchants better manage their chargeback issues.”