High Risk Credit Card Processing: True Cost of Chargebacks

Chargebacks are the eCommerce butterfly effect. Are your prepared to fight chargebacks? Where can you easily get approved for high risk credit card processing? Just go on reading this post and you’ll discover.

 

The Impact of Chargebacks

Let’s start with chargebacks. So, a chargeback happens when your customer disputes a charge to his/her credit or debit card. After this dispute is filed, you’ll be required to refund the purchase and then go get involved in a long process of proving the validity of that charge.

 

It’s no surprise that chargebacks can immensely impact the bottom line of the whole payment ecosystem. In fact, chargebacks can destroy sales revenue and merchandise, cause additional fees for businesses, result in extra administrative costs, as well as put the relationships between merchants and institutions at risk.

 

Chargeback disputes impact not only merchants, but also banks and the consumer base as a result. Chargebacks are fraught with false declines, return fraud, threats to their sustainability, the compression of merchant acquirers’ margin of profitability, increased issuer costs, as well as rising prices for consumers.

 

High Risk Credit Card Processing and Chargeback Costs

Are you a business owner interested in some numbers concerning the impact of chargebacks? Do you need to find a payment processor to get approved for high risk credit card processing without challenges?

 

All you need is to work with a reliable and experienced credit card processing company that specializes in the high risk space and offers exceptional payment processing solutions to merchants of any type and size. Look for a reputable merchant services provider that provides services to every single merchant based on his/her own business specifics.

 

When it comes to chargebacks, work with a respectable payment processor that offers reliable services designed to reduce chargebacks and fight fraud successfully.

 

Now, let’s look at some numbers. According to some new data published by Javelin, the total chargeback costs brought about by both merchants and banks in 2017 made up roughly $31 billion in loss.

 

However, this isn’t the whole picture in fact. The true financial impact of chargebacks accounts for over $150 billion per year.The estimates in the field show that for every $100 in chargebacks, your true chargeback cost makes up $240 in wasted time, expensive fees, penalties, or additional losses associated with goods and services.

 

By the way, when faced with multiple chargebacks, your bank may add to your chargeback fees, require additional penalties for these chargebacks, or even close your account.

 

Remember that without the trust of your customers, you won’t go anywhere. When your customers trust you, they have greater willingness to contact you with a problem. Thus, you get an opportunity to resolve the problem directly with your customers instead of having to deal with the chargeback process.

 

Chargebacks cause revenue losses, false declines, penalties, and additional overhead. All these create problems for merchants they can’t afford to ignore. Work with a true professional in the field and take the right steps to avoid chargebacks as much as possible.

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