Nevertheless, protecting your SaaS business through dedicated fraud detection and prevention software, security systems and procedures, and staff training can lead to significant costs, ultimately impacting your company’s bottom line.
Boosted Chargebacks Rates
Chargebacks are not only responsible for lost revenue due to the refunds resulting from fraudulent transactions, but they can also result in hefty penalties from your payment processor.
You are flagged as a business with a high chargeback ratio. This increases payment processing fees, and in certain instances, merchant accounts can be restricted or could even be terminated.
How-is-SaaS-Impacted-by-chargeback-fraud
This puts tremendous pressure on your company buy albania telemarketing data and staff, making it rather challenging to manage a high number of disputes when more and more resources to run your business are required elsewhere within the company.
Also, even if you win the chargeback, the ratio still counts towards your merchant account, and you can be fined or terminated by the credit card schemes.
Common Chargeback Causes
To effectively combat and prevent chargeback fraud, you must understand why it happens. Or better said, when it happens.
Recognizing that not all chargebacks result from fraudulent activity, it’s essential to be skilled in carefully examining chargeback alerts in a timely manner and swiftly distinguishing between valid claims and those rooted in fraud.
The foundation for accurate identification lies in understanding the underlying causes of chargebacks.
Inexperience with Chargeback Procedures
For a large number of customers, the concept of chargeback is quite abstract, being completely unfamiliar with it.
This can lead to many unintentional chargeback requests, which could have been easily solved through a refund. Instead of contacting their eCommerce merchants, customers contact the bank, which causes the transaction to be flagged as a chargeback.
