Chargeback Fraud Prevention Tools – Which is Right for Your Online Business?

We have compiled the following list of Chargeback Fraud Prevention tools that may assist you in stopping fraud and chargebacks. Before You Buy … The following list of fraud tools may assist you in preventing fraud and any chargeback fees

These fraud tools can help block transactions that could lead to chargebacks and detect potential fraudulent activity. However, none of these tools can completely eliminate risk.

It makes sense that fraud tools can reduce crime but will not eliminate friendly fraud – such as illegitimate chargebacks. Because it is impossible to eliminate dishonest consumer behavior and misunderstood requests for refunds, you will still receive some chargeback requests. This is true regardless of how robust your tool is.

That being said, you can still get maximum protection using a the following tools that are provided by our chargeback management software 

  • Prevention alerts and Visa Merchant Purchase Inquiry (VMPI): This is used to resolve disputes after a transaction has taken place but before a chargeback has been issued.
  • To avoid liability for Visa’s allocation disputes, your processor or gateway can offer tools like AVS and CVV. 
  • Customers who have previously protested a transaction are added to a blacklist.
  • A risk management software breaks down the chargeback data by variables you can identify the source of the chargebacks so you can resolve them
  • Recovering lost revenue through chargeback technology Learn More

A comprehensive risk management strategy may seem like it requires a variety of different service providers. The truth is, multi-layer protection is not as hard to obtain as you might think.

Parselytics an all-in-one solution. You can use a single platform to prevent and combat chargebacks.

Last but not least, some service providers reimburse merchants if a chargeback is received on a confirmed transaction. However, merchants will not receive a refund for all chargebacks, since this reimbursement policy is restricted by certain rules. Because of this, if you want to recover the revenue you lost to chargebacks not covered by the guarantee, then you still need chargeback management software and a reliable system in place. Click here for more information