Learn more about other Verifi products and services. Dramatically reduce your chargeback volume and decrease operational expenses.
Chargeback Revenue Recovery
Recover revenue lost to chargebacks
CDRN for Merchants
Stop chargebacks
IoT: The Future of Payments
Navigate through the Payment Revolution
Merchant-Issuer Collaboration
Communication is key to eliminating chargebacks
Verifi works with global financial institutions and merchants to deliver best-in-class chargeback prevention solutions.
Understanding the Broken Chargeback Process 86% of cardholders bypass the merchant and contact the issuer directly. In addition, most disputes are intentional “buyer-liar” fraud — which accounts for 25-40% of an online merchant’s total chargeback volume. Unfortunately, the issuer doesn’t have the critical transaction details needed to substantiate the legitimacy of the sale on the first call, and cannot determine:
- True fraud or “friendly fraud”
- Buyer’s remorse
- Defective service
|
- A legitimate refund issue
- A simple case of descriptor confusion
|
The issuer is left with few options; since they can’t legitimise the transaction, they are forced to either start the dispute process or flag the transaction as fraud. This kicks off an expensive and convoluted process that costs merchants up to $16 Billion annually in:
- Fees, penalties, and lost profits
- Potential loss of processing rights
- Increased operational costs
|
- Increased fraud and chargebacks
- Lost customers
|
There are other hidden costs that are not so easy to represent on the balance sheet, including:
- Increased disputes
- More “friendly fraud”
- Risk of losing processing privileges
- Double refunding
- Stalled cash flow
|
- Lost merchandise or digital services
- Excessive representment costs
- Negative brand associations
- Zero opportunities to resolve the dispute
- Resolve disputes quickly with a refund or a replacement
|
Order Insight fixes the current challenges to the process.