In this article, we will look at several tools to prevent such a phenomenon as chargeback.
How to avoid chargebacks.
Regardless of how honest and transparent you are in your business, you will have to deal with chargebacks. A buyer who has forgotten about subscribing to any online service can go directly to the bank with a request to return the funds to the card. And demanding customers, having received, in their opinion, a low-quality product or service, will demand a refund, even if objectively there are no prerequisites for this.
However, scammers often use the chargeback option. Having received the desired product, they pretend that the delivery did not take place and demand a refund from the bank.
Thanks to modern technologies, new software is emerging to combat chargebacks based on artificial intelligence and machine learning. We have collected in this article 15 systems that will help you to detect potential fraudsters in advance and prevent chargebacks.
Chargeback prevention software
1. Experian
This system allows you to check customer accounts for any conflicting information or suspicious activity. Such accounts are marked with a special label that shows how high the risk of fraudulent activity is.
2. LexisNexis
LexisNexis not only detects but also prevents chargebacks. According to the developers and project managers, services are provided not only by traders, but also by entire government agencies. This means that the company gives high guarantees of system reliability.
3. Ethoca
The company has developed a solution that allows not only challenging existing chargebacks, but also verifying every transaction.
4. Sift Science
The system creates marks on each account showing whether the merchant can trust this customer (based on the customer's previous shopping experience, IP address, transaction history, etc.).
5. Verifi
A team of professionals with 13 years of experience, Verifi is currently preventing over 200,000 chargebacks every month, and the rate of successfully resolved chargeback requests (in favor of merchants) is double the market average.
6. MaxMind
Among the useful tools and functions of this resource are riskScore and geolocation. Each trader can view the "risk factor" for a client in real time. As for GeoIP2, the service helps to identify the mainland, country, time zone and domain of each client by IP address.
7. Riskified
Riskified is considered one of the most trusted services in the industry. This tool is especially effective when it comes to transactions without the presence of a card (card-not-present).
8. Charge Advisor
The system analyzes a variety of parameters associated with transactions, evaluates and compares them, calculating estimated "points". Based on this data, all potentially suspicious or fraudulent transactions are blocked. In addition, the system is built on machine learning mechanisms, which means that it continuously expands the database and can improve the ways of dealing with chargebacks day after day absolutely on its own.
9. Fidelity
Fidelity's Fraudwatch is a solution that gives merchants the ability to choose which transaction groups to check. Accordingly, he will also pay only for the analysis of operations, which he himself identified as high-risk.
10. Kunt
Kount can be considered one of the pioneers of the market, since they began to develop their system more than twenty years ago. Easy to integrate and easy to use, it will save merchants not only hassle and time, but also money. According to some reports, the majority of customers who have tried this software once, prolong their cooperation, which is a big plus in favor of Kount.
11. Signifyd
The uniqueness of this system lies in the fact that the merchant can make an official demand for full refund for those fraudulent chargebacks that the system did not track and did not prevent for one reason or another. The application will be examined by the company's employees, the funds will be returned to the merchant's account within 48 hours.
12. Chargebacks911
For clarity, the developers have added a special calculator that helps to calculate the average cost of chargebacks, based on the average number of those per month, the average transaction amount, commission and fees, as well as the cost of goods and delivery. These calculations show the real picture of how disastrous chargebacks can be for businesses.
13. FraudlabsPRO
The program analyzes each transaction before it is confirmed. Payment is viewed from different angles, many aspects are taken into account. In case of the slightest inconsistency, the transaction is blocked. The software automatically blacklists suspicious transactions to help other merchants across the network.
14. Chargeback defense
The company's list of services includes refunds, real-time dispute response and regulatory compliance.
15. Fraud.net
This system has more than 432 thousand fraudulent chargebacks prevented, which is quite an impressive figure in the industry.
The way Fraud.net works is quite simple, but at the same time it is very effective. The system identifies potential fraudsters, as well as customers who are most likely to want to issue a chargeback. Then they are blocked by the system.
These are just a few of the services to look out for when it comes to preventing fraud and fighting chargebacks.
How to avoid chargebacks.
Regardless of how honest and transparent you are in your business, you will have to deal with chargebacks. A buyer who has forgotten about subscribing to any online service can go directly to the bank with a request to return the funds to the card. And demanding customers, having received, in their opinion, a low-quality product or service, will demand a refund, even if objectively there are no prerequisites for this.
However, scammers often use the chargeback option. Having received the desired product, they pretend that the delivery did not take place and demand a refund from the bank.
Thanks to modern technologies, new software is emerging to combat chargebacks based on artificial intelligence and machine learning. We have collected in this article 15 systems that will help you to detect potential fraudsters in advance and prevent chargebacks.
Chargeback prevention software
1. Experian
This system allows you to check customer accounts for any conflicting information or suspicious activity. Such accounts are marked with a special label that shows how high the risk of fraudulent activity is.
2. LexisNexis
LexisNexis not only detects but also prevents chargebacks. According to the developers and project managers, services are provided not only by traders, but also by entire government agencies. This means that the company gives high guarantees of system reliability.
3. Ethoca
The company has developed a solution that allows not only challenging existing chargebacks, but also verifying every transaction.
4. Sift Science
The system creates marks on each account showing whether the merchant can trust this customer (based on the customer's previous shopping experience, IP address, transaction history, etc.).
5. Verifi
A team of professionals with 13 years of experience, Verifi is currently preventing over 200,000 chargebacks every month, and the rate of successfully resolved chargeback requests (in favor of merchants) is double the market average.
6. MaxMind
Among the useful tools and functions of this resource are riskScore and geolocation. Each trader can view the "risk factor" for a client in real time. As for GeoIP2, the service helps to identify the mainland, country, time zone and domain of each client by IP address.
7. Riskified
Riskified is considered one of the most trusted services in the industry. This tool is especially effective when it comes to transactions without the presence of a card (card-not-present).
8. Charge Advisor
The system analyzes a variety of parameters associated with transactions, evaluates and compares them, calculating estimated "points". Based on this data, all potentially suspicious or fraudulent transactions are blocked. In addition, the system is built on machine learning mechanisms, which means that it continuously expands the database and can improve the ways of dealing with chargebacks day after day absolutely on its own.
9. Fidelity
Fidelity's Fraudwatch is a solution that gives merchants the ability to choose which transaction groups to check. Accordingly, he will also pay only for the analysis of operations, which he himself identified as high-risk.
10. Kunt
Kount can be considered one of the pioneers of the market, since they began to develop their system more than twenty years ago. Easy to integrate and easy to use, it will save merchants not only hassle and time, but also money. According to some reports, the majority of customers who have tried this software once, prolong their cooperation, which is a big plus in favor of Kount.
11. Signifyd
The uniqueness of this system lies in the fact that the merchant can make an official demand for full refund for those fraudulent chargebacks that the system did not track and did not prevent for one reason or another. The application will be examined by the company's employees, the funds will be returned to the merchant's account within 48 hours.
12. Chargebacks911
For clarity, the developers have added a special calculator that helps to calculate the average cost of chargebacks, based on the average number of those per month, the average transaction amount, commission and fees, as well as the cost of goods and delivery. These calculations show the real picture of how disastrous chargebacks can be for businesses.
13. FraudlabsPRO
The program analyzes each transaction before it is confirmed. Payment is viewed from different angles, many aspects are taken into account. In case of the slightest inconsistency, the transaction is blocked. The software automatically blacklists suspicious transactions to help other merchants across the network.
14. Chargeback defense
The company's list of services includes refunds, real-time dispute response and regulatory compliance.
15. Fraud.net
This system has more than 432 thousand fraudulent chargebacks prevented, which is quite an impressive figure in the industry.
The way Fraud.net works is quite simple, but at the same time it is very effective. The system identifies potential fraudsters, as well as customers who are most likely to want to issue a chargeback. Then they are blocked by the system.
These are just a few of the services to look out for when it comes to preventing fraud and fighting chargebacks.
