The number of online stores is growing all over the world every day. Buyers can find the perfect solutions for them using their laptops, smartphones, or tablets. With just a few clicks, shoppers can buy clothes, shoes, furniture, and more. This means that the number of digital transactions is increasing. 

However, at the same time, the number of chargebacks is also growing, which is becoming a no-win situation for merchants. All over the world, sellers lose millions and billions of dollars every year due to fraud, as well as due to misunderstandings or conflict situations with buyers. As a result, many retailers find that their revenues are significantly reduced, which becomes a major problem for them. 

The problem is that sellers don’t just make refunds equal to the purchase price. In the aggregate, chargebacks, together with additional commissions, are too expensive for sellers. In addition, this is not only a loss of profit, but it also means that merchants, due to the increased number of chargebacks, start having problems with card networks, as well as with payment service providers. 

Fortunately, salespeople can do something instead of sitting back and watching their business go down the drain. There is a great way out of this. We’re talking about chargeback management software that helps detect, prevent, and protect against chargebacks fraud and false charges. 

Investing in chargeback solutions is one of the most effective ways to combat declining profits. If this is what concerns you, you will want to know how advanced tools work and how they can help you take control of the situation. 

We will go into detail about what such software is and how it helps many businesses worldwide. 

What do you need to know about such a solution? 

The biggest problem for sellers is that they find out too late about any disputes that buyers start. By the time they find out about them, they are already losing some of their profits. In such situations, there is little you can do but start a legal investigation if you are sure that you are dealing with scammers. 

However, what if you can track transactions and everything related to them using chargeback software? This is possible because you can get a set of advanced features to help you deal with conflict situations with buyers, as well as with scammers. 

You know that your main goal is not to allow the percentage of such payments to exceed one percent. Such software offers each seller a set of tools to reduce their number so that there are no problems with card networks. Depending on your industry and your needs, you may find the perfect solution for your business. 

How does it work? 

Each of the chargeback management tools offers different functionality. If you start to get acquainted in detail with the most effective tools on the market today, you will find that they have their advantages and disadvantages. However, in general, they can help with the following: 

Defend against losses 

If you discover late that a buyer is initiating a chargeback process, there is little you can do. This means that, in the end, you will not be able to control the increase in your losses. However, the software offers you a feature to alert you when buyers start contacting their banks to get their money back. When you see an alert, you can stop the dispute simultaneously to prevent profits losses. This is a great way to deal with scammers who want to cash in on your profits. 

You can find out what happened by dealing with ordinary customers with whom you may have some misunderstandings. When buyers have problems with their purchases, they are unwilling to contact the seller. Instead, it’s much easier for them to get their money back immediately. 

In addition, you can easily find out what caused the conflict. Perhaps you unknowingly made a mistake on your part. The goods could be delivered to a different address, or a large amount was debited from the buyer’s bank card. There are many issues that you can fix without making a mistake on your part. 

Tracking fraudulent activity 

If you have difficulties with ordinary buyers, you can take some measures to avoid misunderstandings. You can improve your website by providing complete information about purchases, making sure deliveries are on time, and more. 

However, when it comes to scammers, there is little you can do without software. The software helps to track information about any transactions and analyze them. This includes keeping transaction history, tracking customer behavior, and more. Based on such data, you have an advantage in that you improve your processes to protect against intruders. 

Dispute resolution 

Participating in the dispute resolution process can significantly reduce the number of chargebacks. Tools help you collect not only all the necessary information about transactions but also collect information that can serve as a compelling argument to defend your point of view. If the buyer makes a false claim, then you can easily end the dispute. 

The software allows you to classify all the necessary information. In addition, you will be able to send documents to banks that meet all standards. If you do all this manually, then you will spend a lot of time and effort on it. 

Instead, you can take advantage of the fact that this process will happen automatically. Based on all transaction data, reports will be generated that you can later use as evidence. In this way, you will not only be able to effectively respond to claims against you but also significantly reduce the number of chargebacks. This means that you will be able to stay within limits set by the payment systems. 

Conclusion 

The increase in digital transactions poses some threats to business owners. Despite all the convenience, sellers are facing an increase in chargebacks. Merchants suffer huge losses because of this, and there is also an increased risk that they may have problems with card networks. Today, however, various providers offer effective tools to prevent the growing number of returned payments.