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If Someone Handed You Free Money, Would You Take It?

posted on: Wed Nov 15 2017

“There ain't no such thing as a free lunch.”

The origin of this saying stretches back to at least the late 1800’s. Ever since, it’s been an accepted as a truism. So when people read this quote from Jennifer Johannsen of ClickBank—a leading digital goods marketplace—they’re likely to be wary:

“I would absolutely recommend the Kount implementation of Chargebacks911. After just 60 days, it has helped us add $400,000 directly to the bottom line, without requiring extra time or effort or headcount (emphasis added).

Jennifer Johannsen, Director, Risk & Compliance, ClickBank

At first, this may sound like a free lunch. But it’s not. ClickBank took advantage of the fully-managed chargeback service that’s offered as an option with the Kount integration of Chargebacks911. Fees for this service are actually funded by the chargeback losses that are prevented and/or recovered. The result is a win-win for both online businesses and Kount/Chargebacks911. How does it work?

By taking on full responsibility for a merchant’s total chargeback management, the fully-managed chargeback service in the Kount integration of Chargebacks911 is able to address both sides of the chargeback issue: prevention and representment. Through a combination of proprietary technology and expert human forensics, Chargebacks911 tracks down the root cause of chargebacks and executes customized solutions. This exclusive Kount + Chargebacks911 integration provides dual-layer chargeback management, including:

  • Intelligent Source Detection™. Discover the true chargeback trigger.
  • Merchant Compliance Review. Eliminate merchant errors to prevent chargebacks.
  • Chargeback Alerts. Stop criminal fraud chargebacks before they start.
  • Affiliate Fraud Alerts. Get more revenue with less risk from your affiliate programs.
  • Tactical Chargeback Representment. Let the experts dispute chargebacks for you.
  • Comprehensive MAC Reports. Optimize your processing program.

Could you achieve the same results on your own? Theoretically, yes.

"In theory, there is no difference between theory and practice. In practice, there is."

Jan van de Snepscheut (not Yogi Berra, as commonly believed)

In other words, offloading chargeback management to Kount and Chargebacks911 is probably the only way to achieve the type of success ClickBank experienced. Why? Preventing and/or recouping losses from chargebacks is a full-time job, it’s a moving target, it’s hard to win, and the issue never goes away. It requires expertise, tenacity, and unique capabilities.

Here’s what merchants say are the biggest obstacles they face (in practice) with do-it-yourself chargeback management, according to polling conducted during a recent webinar:

  57% 

Complex chargeback rules and regulations. PCI regulations and mandates are constantly changing: there were more than 30 updates in the first half of 2017 alone for disputes and chargebacks. Also, conflicting nomenclature, changing payment methods, etc. add to complexity.
49%  Gathering the right data. Merchants with legacy and/or in-house fraud prevention systems may not collect all the data points necessary to win representments.
48% Time and resources. Lack of success and higher operational expenses can lead merchants to give up and simply consider "friendly fraud" a cost of doing business.
33% Knowing which chargeback to fight. It is difficult for merchants to identify the source of chargebacks, which are often confused with the symptoms of chargebacks.
27% Understanding the process. Filing chargebacks is easy for consumers. For merchants, representment is a complex and esoteric process.

(percentages add up to more than 100% due to multiple answers allowed)

Want to learn more about how your eCommerce operations can beat criminal and “friendly” fraud to avoid and/or recoup chargeback losses?

Download the eBook “There’s No Such Things As Friendly Fraud” and discover 10 best practices for fighting chargeback fraud and how to reduce chargeback losses by as much as 85%.

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