Most businesses encounter periodic chargebacks, and it is best to address them quickly, so they don’t negatively impact your revenue. By the end of 2023, chargebacks will cost merchants nearly $118 billion, according to a Chargebacks911 study, but this amount could be lower if more merchants invest in preventative alerts.
One effective alert for reducing chargebacks is Visa’s Rapid Dispute Resolution, or RDR. RDR provides merchants with the ability to resolve disputes before they become chargebacks by automatically refunding the shopper based on merchant-defined rules. You can set the amount limit you’d like Visa to automatically refund, leaving no additional work on your end to avoid the chargeback.
While any business can use this tool, it is highly effective for those that encounter frequent chargebacks. RDR reduces the time you need to spend working with the card brands and managing disputes. With RDR, you reduce your overall chargeback ratio. RDR occurs before a chargeback is created, therefore it will not be considered when Visa calculates your chargeback ratio. This reduces the chance of your business being placed in their excessive chargebacks program and allows you to continue processing legitimate transactions.
Other alerts, like Verifi and Ethoca, also assist in mitigating the effects chargebacks have on your business. By implementing them, you will be able to better identify fraudulent activity and potential chargebacks before they become a problem, saving your business time and revenue.
BlueSnap Can Help You Prevent, Manage & Dispute Chargebacks
We understand how frustrating the chargeback process can be and the time it takes to dispute each individually. BlueSnap provides a comprehensive chargebacks solution that can help you identify and stop fraudulent transactions before they become a problem. Merchants can use BlueSnap’s platform to gain visibility into the chargeback lifecycle and respond to disputed transactions as needed:
- We help you protect your business by preventing chargebacks before they happen to avoid lost revenue and higher fees.
- We help you preserve revenue by helping you to fight chargebacks and reduce revenue loss.
- We help you streamline operations with time-saving, user-friendly dispute management solutions so that when you do fight chargebacks, you win.
We employ a variety of card brand tools, including RDR, Verifi and Ethoca alerts, to help aid in fraud prevention and potential chargebacks, mitigating the impact on your business.
With chargebacks and fraud on the rise, you need to proactively protect your business. The last thing a merchant needs is to be placed in an excessive chargeback program that hinders your ability to accept payments. RDR and other alerts are crucial tools to help your business and protect you from chargebacks.