How Payment Facilitators Manage Losses Caused by Chargebacks

Thursday, February 27th, 2020

Are you dealing with chargebacks? Do you want to know how payment facilitator can manage chargeback losses? Who can help you avoid fraud and chargeback problems with ease? No need to look further. Just find answers in the lines below.

Chargebacks: How to Avoid Them

A chargeback occurs when a consumer disputes a charge on his/her account and receives his/her money back from the issuing bank. Unlike a refund, a chargeback passes through the payments system.

To avoid headaches, you should keep good records and all the necessary authenticating data at the time of purchase so to be prepared in case there’s a chargeback. It’s too important to respond right off the bat as soon as you receive a request for the information concerning a disputed transaction.

Be aware that a pre-arbitration or 2^nd chargeback is also possible in case your representation is unacceptable to the issuer.

Thankfully, there’re reputable merchant-services providers that can help you avoid falling into obstacles. All you need is to turn to a true payments-processor comparison company in the UK that guarantees the most trustworthy snapshot of processors at the time of writing.

This way, you can be sure to find a true credit-card processing specialist that can help you resolve customer issues before they officially become a chargeback. Only, go for a comparison expert that considers terms, complaints, and integration of special importance.

Managing Chargeback Losses With Payment Facilitators

According to the recent ‘Fraud the Facts 2019, UK Finance’ research, while UK banks and card issuers were able to fight £1.66 billion worth of fraud in 2018, the industry lost £1.2 billion because of financial fraud and scams.

Payment facilitators (PFs) are called to operate between the acquirer and the merchant. They manage the chargeback process along with the acquirer, by providing help with documentation. Payment facilitators also put other controls into implementation to protect themselves against losses, such as excessive chargebacks.

So, when a card issuer submits a chargeback, it’s your merchant account that’s held liable for the disputed amount. Besides, any applicable fees are also added to that. Take the necessary measures to avoid chargeback issues as much as possible.