When the owner of a card that was used to pay for a product or service contacts their bank with a request to cancel the payment transaction, the online merchant receives a chargeback. This is perhaps one of the worst things that can happen to a seller in e-commerce: chargeback and fraud. How can online sellers protect themselves from fraud and chargebacks, and how can Ethoca help with this?
Secure e-commerce fraud: learn more about chargebacks
Chargeback is unpleasant and dangerous because it creates a loss for an online store. The merchant not only loses the money but also pays a fine for each chargeback. In the worst case, the online store can be left not only without funds but also without the goods already sent to the customer.
Moreover, when a certain number of chargebacks is reached, the online store generally loses the ability to accept payments via a merchant business account in Europe.
Therefore, one should strive to minimize the number of chargebacks and ideally not get them at all.
How to secure e-commerce fraud?
To begin with, the total protection against chargeback cannot exist in principle. This is how Internet sales work, and the rules of payment systems are drawn up in such a way that, by default, a cardholder is a person more protected in a disputable situation than a merchant business account.
However, there is also good news. If you follow certain recommendations on https://maxpay.com/, then the probability of reducing your chargebacks. For example, you can use Ethoca and protect your money.
Ethoca service will immediately notify you in the case when chargeback attempts are detected, so you can resolve them. Maxpay has used Ethoca to help owners of the companies and protect them from fraudsters that can ruin their business.
Utilizing Ethoca, the businessman gets the numerous possibilities:
- Instant notifications from Ethoca about chargebacks that can happen.
- The opportunity to react to them in real-time mode.
- Avoiding the increase of the chargeback threshold and avoiding costly fees.
- Making the experience of clients better by providing refunds and solving all the problems that may appear.
The principles of Ethoca service work are simple and convenient:
- A customer connected with the bank and notified it about a chargeback.
- The bank can also be a part of Ethoca, so it will send the cardholder the confirmation and wait till the merchant give his response according to the situation.
- Ethoca provides the merchant with an instant alert after getting this information.
- The merchant refunds the client before the occurrence of the dispute or stops the product from sending if it is still possible.
Ethoca service looks very simple, but this simplicity is exactly what the merchant needs to protect his funds and reputation from chargebacks and their consequences.
Try out Maxpay together with Ethoca service and stay sure that you are protected against fraudsters and scammers, and let Ethoca help you grow your business.