Chargeback prevention alerts inform a business when a chargeback is about to be submitted. Ethoca and Verifi (for Visa transactions and MasterCard transactions respectively) are the two main alert suppliers.
You can sign up on your own for a chargeback prevention alert network. However, managing those alerts and responding to them correctly can be difficult. Additionally, there are occasionally problems where banks tell Ethoca and Verifi about the same chargeback, leading to multiple alerts and costs.
A reputable third-party alerts provider offers solutions for issues like duplicate notifications and makes it simpler to organize and handle alerts. Additionally, third-party alerts and other chargeback management solutions can be bundled together on a single platform.
Strategies for preventing chargebacks are intricate and unique for each type of firm. However, chargeback prevention alerts are one type of advance notification that is necessary for any good chargeback protection approach. It is incredibly challenging to stop credit card chargebacks if you are unaware that they are coming.
According to Ethoca, each chargeback costs businesses 2.5 times what the initial transaction cost. This figure often represents the chargebacks’ direct costs, which include missed sales, chargeback fees (between $20 and $100 for each chargeback), and administrative expenses. Indirect expenses for brand damage also exist. Additionally, excessive chargebacks have more serious repercussions.