Chargebacks are an expensive nuisance for merchants. On average, chargeback costs are 2.5X the transaction cost. These figures alone are enough to drive merchants to implement steps towards chargeback prevention, but they are not a true representation of what a chargeback costs your business.
Gambling has been around for eons, but the first legal casino was opened in 1638 in Venice, Italy. Online gambling started gaining traction in the 1990s. Today, the legal online gambling industry is massive and growing fast. The value of online wagers is expected to exceed $1 trillion by 2023. It’s even more impressive when you consider the numerous legal restrictions with which it contends.
For merchants and customers concerned with financial crime and cyber security, bank fraud is a big problem. As such, it’s crucial to understand how banks investigate fraud and how you can prevent it.
Cash App is a peer-to-peer (P2P) mobile payment application developed by Square, a popular payment processor. Like Zelle and Venmo, Cash App allows users to send and receive money instantaneously within the US.
The Covid-19 pandemic created an increased demand for contactless payment systems. For businesses, this meant accepting Apple Pay and Google Pay. Google Pay absorbed Android Pay and Google Wallet in 2018 making it the preferred contactless payment method for many Android users.
When you start out as a business using PayPal, you might be under the impression that when a customer’s payment is processed you will get access to the entire sum of money. Then you get hit with some of the fine print. PayPal emails you that it’s instituting a reserve on your account.
With the ever-changing eCommerce landscape, new payment technologies, and new card fraud methods, card networks are forced to update their regulations frequently. Despite being heavy reads, you must spend time soaking up this information or have the guides for reference.
Merchants always want to avoid losing sales and often the cost of goods sold which accompanies chargebacks. But chargebacks don’t just cost you the money lost from goods sold, they also lead to fees. Unwatched, your chargeback ratio can convince the credit card network to place your business in a monitoring scheme that will cause these additional fees to balloon. These programs, namely the Visa Dispute Monitoring Program (VDMP) and Mastercard’s Excessive Chargeback Program (ECP), are designed to help incentivize merchants to get their house in order. The salient features of each program are included in the tables below.
A major driving factor in merchants' desire to prevent fraud is the fraud monitoring programs implemented by the main credit card networks, namely the Visa Fraud Monitoring Program (VFMP) and MasterCard’s Excessive Fraud Merchant Compliance Program (EFM). These programs are designed to help companies develop plans to tackle their fraud problems, but they also tack on hefty fees to penalize merchants who don’t have their house in order.
When a company that sold you something declares bankruptcy before delivering, it’s easy to throw your hands up in the air. Last year, amid the Covid crisis, travel companies and airlines were filing for creditor protection left and right. Major retail chains like JC Penney and Neiman Marcus also went belly up. It’s moments like these that people need to consider the oft overlooked option to pursue a chargeback.
A payments trend that has taken off in recent years is buy now, pay later (BNPL). Some well-known BNPL services include PayPal’s Pay in 4, Klarna, Affirm, Afterpay, Quadpay and SplitIt, with the number of competitors growing rapidly
A retrieval request, also known as an inquiry, request for information or a soft chargeback, is simply a review of the paperwork regarding a credit card transaction. It can be filed by the issuing bank or the issuing bank can file one on behalf of the cardholder if they do not recognize a transaction or suspect fraud.
