CB Dispute Announces Pre Chargeback Alerts
CB Dispute, a chargeback management and prevention business, has recently announced the ability to prevent chargebacks by issuing pre chargeback alerts to businesses.
What is a chargeback?
A chargeback is the result of a customer disputing a charge on their credit or debit card. They elect not to pay the charge, and as a result, a business loses the product AND the cost of the product. This is much more damaging to a business.
A chargeback can also be a fraudulent charge. If a card is lost or stolen, thieves may place orders, which are NOT authorized by the cardholder. This is the worst situation, as the business, the customer, and the credit card issuer face possible losses.
How much does it cost to fight a chargeback?
For many beleaguered business owners, fighting a single chargebacks can take several hours and a bit of money. Chargeback penalty fees from merchant services providers typically cost $25 – $55, in addition to the above. Having a pre-chargeback alert system prevents the fee, and in most cases the business will be notified before shipping the product.
Chargebacks and High Risk Merchant Accounts
Chargebacks are even worse for high risk merchant accounts. Because of their business models and heightened risk factor, they are more vulnerable to chargebacks and sometimes have to prioritize protecting the merchant account over losing the product. When a merchant account is terminated, a business may not be able to obtain another without using a separate business license, making chargeback prevention one of the most valuable services for business continuity.
Why is it better to find out before?
CB Dispute’s new pre-chargeback alerts allow a business to find out about disputes and chargebacks before they reach their merchant services provider. The value provided by this is immense. By allowing the business to handle the problem before it worsens, the business merchant account is protected from chargeback fees, sidesteps an increase in risk, and doesn’t have to spend valuable time combating chargebacks.
How do I find out more?
CB Dispute representatives are standing by to assist business owners with any questions they have regarding chargebacks, chargeback prevention, or chargeback management. Just contact us to start saving your business time and money.