As a group, online shoppers are carelessly trigger-happy about requesting chargebacks, according to Monica Eaton-Cardone, co-founder of Chargebacks911. The reason? According to Eaton-Cardone, issuing banks dealing with online merchants have for years simply rubber-stamped such requests with little or no investigation. For the average consumer, getting a payment reversal from the bank seems infinitely easier than calling the merchant and sorting through the problem.
"Consumers making card-not-present purchases have experienced fighting charges and getting them reversed, so they do it without thinking," she said. "It's so easy, they don't understand there's a consequence [for the merchant]. A lot of revenue is lost not fighting illegitimate chargebacks."
That is where Chargebacks911 comes in. Eaton-Cardone said the company acts as an advocate for the online merchants and as a mediator in any chargeback dispute. Chargebacks911 investigates each chargeback request and, when requests appear unnecessary or illegitimate, works to correct the issues.
Because banks are so accustomed to approving chargebacks, work done on behalf of new clients usually entails getting chargebacks overturned, which is a difficult process that leaves a mark on the merchant's record. "Merchants are guilty until proven innocent – you have to prove that the chargeback was wrong," Eaton-Cardone said. "On top of that, once a chargeback is filed, it stays on the merchant's record no matter what, even if it's reversed."
However, fighting chargebacks can turn the tide in favor of the merchant, Eaton-Cardone noted. What begins as an effort to overturn chargebacks morphs into the rejection of many chargebacks before they go through. And banks see particular merchants are fighting its chargebacks and winning many disputes, so they become more inclined to flag new chargebacks for review instead of rubber-stamping them, Eaton-Cardone said.
"We help the merchant uncover a lot of hidden revenue, and also to repair a negative reputation they didn't know they had at these issuers," Eaton-Cardone said.
The first step to investigating a chargeback is calling the purchaser. Eaton-Cardone said most customers, when questioned directly, will admit to making the purchase in question. Sometimes customers will request chargebacks because they see information on their statements, such as merchant location, that doesn't match their records, and they assume legitimate purchases are fraudulent.
"Sometimes the customer just expects a refund," Eaton-Cardone said. "We'll ask them, 'Why did you request the chargeback?' And they'll say, 'Because I hate [the product] and I don't want it anymore.' And we have to say, 'Look buddy, the bank isn't a place you go to and just get a refund.'"
If the customer continues to push for a chargeback, Chargebacks911 may expand its investigation. For example, it will call up tracking data to address a customer's claim that a shipment never arrived. Or it will triangulate calls with the merchant and customer to determine if a product is actually defective, or if the customer is misusing it or struggling to figure out how it operates.
Even many purchasers who have legitimate claims can be steered away from filing a chargeback. For example, a customer who receives a defective product in the mail can be connected with the merchant to receive a refund, a replacement product or a store credit of similar value.
Eaton-Cardone said chargebacks cause merchants to lose revenue from returned purchases, incur fines levied by their acquirers, and risk being shut down by their acquiring banks if their chargebacks exceed 1 percent of their total sales.
Eaton-Cardone said merchants working with Chargebacks911 commonly see declines of up to 80 percent of their chargebacks. She added that the company provides merchants with daily and quarterly reports and is flexible in its billing, including offering pay-by-performance models that charge a percentage of what a merchant saves in chargeback costs.
"We try to gear things toward sustaining long-term relationships. You can make more money with merchants that grow with you," Eaton-Cardone said.
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Company Profile originally appeared in
The Green Sheet Issue 140602
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211102 - Kalamata Capital Group
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200601 - Delta Payment Solutions
190802 - Credit.net, a division of Infogroup
190702 - Samsung Electronics America Inc.
181201 - Network Merchants LLC
180902 - MainStream Merchant Services Inc.
180801 - Century Business Solutions
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170902 - Frates Insurance & Risk Management
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170802 - Apogee Payment Systems LLC
170702 - Active Software & Hardware Systems
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170502 - Frontline Processing Corp.
170501 - Platinum Choice Bancard LLC
170201 - Electronic Payments Inc.
161202 - International Bancard Corp.
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161101 - Residual Sheriff LLC.
160801 - DigiPay: Solutions Inc
160702 - CreditCardProcessing.com
160201 - Lead Tracking Systems LLC
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151201 - CardWare International Inc
151101 - Lion Capital Group LLC
150801 - Topcreditcardprocessors.com
150702 - Vision Payment Solutions LLC
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150502 - Global Processing Systems
150402 - Mercantile Processing Inc.
150401 - Field Guide Enterprises
150302 - Signature Card Services
150301 - Premier Payment Systems Inc.
150201 - Humboldt Merchant Services
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141001 - Instant Credit Manager
140902 - Merchant Cash and Capital LLC
140701 - National Transaction Corporation (NTC)
140601 - Total Merchant Services
140501 - Nationwide Payment Solutions
140501 - BPC Banking Technologies
140301 - Meritus Payment Solutions
140201 - Process Pink Payments LLC
131202 - First American Payment Systems L.P.
131102 - Evo Payments International LLC
131001 - Live Reps Call Center
130901 - Regal Payment Systems LLC
130901 - The Merchant Solutions
130802 - North American Bancard LLC
130801 - Payment Logistics LLC
130702 - Plug n Pay Technologies Inc.
130601 - U.S. Merchant Systems LLC
130402 - National Processing Co.
130202 - Charge Card Systems Inc.
130202 - Layered Technologies Inc.
130102 - Glazer_Kennedy Insiders Circle LLC
121202 - American Microloan LLC
121102 - Keep in Touch Systems Inc.
121102 - Merchants Choice Payment Solutions
121002 - Washington Bancard Merchant Services LLC
120902 - Central Payment Co. LLC
120802 - Royal Merchant Holdings LLC
120801 - National Benefit Programs LLC
120602 - Cardinal Commerce Corp.
120601 - Veritrans Merchant Services LLC
120502 - ExecuTech Lease Group
120502 - The Small Business Authority
120402 - Chargeback Guardian Inc.
120401 - Electronic Payment Exchange
120301 - Complete Merchant Solutions LLC
120201 - CSR - Compliance Solutions and Resources
120102 - Alpha Card Services Inc.
111002 - Lead Source Call Center
111001 - First Annapolis Consulting Inc.
110902 - Point of Sale System Services Inc.
110901 - Sage Payment Solutions
110801 - Century Payments Inc.
110702 - Creative Vision Studio LLC
110702 - Network Merchants Inc.
110701 - Capital Access Network Inc.
110602 - eProcessing Network LLC
110602 - Moneris Solutions Inc.
110502 - Paragon Application Systems Inc.
110401 - Merchant Implementation Services
110301 - FrontStream Payments Inc.
101202 - CheckAlt Payment Solutions
101102 - Impact Payments Recruiting
101101 - Global Electronic Technology Inc.
101002 - TriSource Solutions LLC
100802 - Federated Payment Systems LLC
100801 - Voltage Security Inc.
100601 - NETSURION (formerly Vendor Safe Technologies)
100502 - Transaction Network Services Inc.
100402 - Secure Payment Systems Inc.
100401 - Elite Merchant Solutions
100302 - Retail Decisions Inc.
100102 - Payment Alliance International
091201 - Performance Training Systems Bankcard Boot Camp
091101 - Merchant e-Solutions Inc.
091002 - Whitehall Capital Advisors LLC
090901 - CoCard Marketing Group LLC
090801 - First National Merchant Solutions
090701 - checXchange Money Transfer Systems Inc.
090601 - Sterling Payment Technologies
090502 - Infinity Payment Systems
090501 - Merchant Cash and Capital
090401 - UseMyBank Services Inc.
090401 - Data Delivery Services Inc.
090302 - Velocity Merchant Services
090302 - Metro Merchant Services
090301 - Smart Transaction Systems Inc.
090301 - DCC Merchant Services USA LLC
090202 - TransFirst Holdings Inc.
090201 - ACH Payment Solutions
081202 - Affirmative Technologies Inc.
081201 - On-line Strategies Inc.
081101 - Vision Payment Solutions LLC
081002 - Veratad Technologies LLC
081001 - International Merchant Solutions LLC
080801 - GreenSoft Solutions Inc.
080702 - Smart Circle International
080601 - International Bancard Corp.
080502 - DRG Telemarketing Inc.
080501 - BCC Merchant Solutions
080402 - U.S. Merchant Systems
080401 - Greystone Business Resources Corp.
080302 - Transmedia Payment Services Ltd.
080102 - Sonoma Technical Support Services
071202 - Barclay Square Leasing Inc.
071102 - FirstView Financial LLC
071001 - Sage Payment Solutions
070902 - YourTownMall Business
070901 - Nxgen Payment Services
070802 - All card Processing-AAMonte-USA
070801 - Money Movers of America Inc.
070602 - Central Point Resources Inc.
070601 - Positive Feedback Software LLC
070502 - Premier Payment Systems
070501 - Amacai Information Corp.
070402 - National Bankcard Systems