Real-time Chargeback Protection: What is It? How Does it Protect Your Business from Fraud & Losses?

Trent Stonge

A chargeback occurs when a customer disputes a charge on their credit card, and your business loses the money while defending itself against the chargeback claim. Real-time chargeback protection uses real-time technology to stop this from happening so that you can focus on serving your customers instead of chargebacks and […]

Chargeback Prevention in Real-Time: Myth or Truth? – Real Business

A chargeback occurs when a customer disputes a charge on their credit card, and your business loses the money while defending itself against the chargeback claim.

Real-time chargeback protection uses real-time technology to stop this from happening so that you can focus on serving your customers instead of chargebacks and the associated fines and fees.

Read on to learn more about real-time chargeback protection and how it works to keep your business safe from chargebacks.

What is real-time chargeback prevention?

Real-time chargeback prevention (also known as automated chargeback protection) refers to a process by which an online merchant’s payment processor can intervene before a fraudulent transaction gets charged to their account.

If fraud occurs, credit card companies initiate these reimbursement procedures immediately, typically within 24 hours of receiving notification of unauthorized use.

This means merchants with real-time chargeback prevention don’t have to spend time and money unwinding fraudulent transactions to get paid for legitimate sales.

Why your business needs real-time chargeback protection

It’s no secret that fraudsters are out to steal your money. Cardholders don’t authorize many credit card chargebacks—the claims are attempted fraud schemes in which a thief puts in a charge using someone else’s card information.

Real-time chargeback protection helps protect your business when unauthorized charges happen on legitimate cards.

Because of real-time fraud monitoring, you can often reverse these charges without ever seeing them on your statement, thereby preventing losses for your business and customers who pay for products or services in good faith.

With those protections, it’s harder for thieves to make fraudulent purchases with stolen or lost credit cards. You’ll be glad you have them if an unauthorized charge does appear on a customer’s statement!

Automatic refunds with Visa-Verifi’s Rapid Dispute Resolution (RDR)

Visa-Verifi’s Rapid Dispute Resolution (RDR) automatically sends back approved disputes within minutes so your business can get quick reimbursement. It even offers detailed analytics on fraudulent orders, giving you more information about why chargebacks happened to prevent future losses.

This feature also gives you greater control over chargebacks by letting you choose whether or not to approve a dispute, thereby avoiding unnecessary expenses.

A quicker settlement also reduces customer churn because the buyer recovers their funds faster.

Real-time chargeback prevention with Ethoca Alerts

When a chargeback occurs, you’ll get an immediate notification so you can address it before your business takes any damage.

Ethoca Alerts notify you immediately after a chargeback has been initiated, allowing you to provide evidence of delivery, respond quickly to questions and communicate effectively with your customer.

By working with customers in real-time, Ethoca gives you a fighting chance at reducing claims that can be time-consuming and damaging to your bottom line.

No need to wait for traditional chargebacks; both merchant and customer are alerted in real-time so they can work together immediately to resolve disputes. You’ll even be notified when additional chargebacks occur due to the first being resolved!

Real-time chargeback protection reduces losses due to associated fines and fees, prevents fraud, and speeds up conflict resolution.