In a Nutshell: Chargebacks911 helps merchants save money they are currently losing through chargebacks. Rates of chargebacks can vary by industry, but some industries, including restaurants, are seeing rising rates due to evolving technology. Chargebacks911 conducts an in-depth business analysis for each of its clients to see where its services can be the most valuable. The company can provide numerous solutions, including end-to-end handling of all chargebacks. Ultimately, the company helps businesses stop leaving money on the table through lost revenue due to chargebacks.
Chargeback laws were created decades ago to protect consumers against merchants acting in bad faith.
Today, many merchants consider chargebacks to be an unavoidable part of doing business. Despite merchants’ best efforts, customers will request that charges be reversed, whether it’s due to legitimate fraud, returning merchandise or refunding services, or even friendly fraud.
And friendly fraud chargebacks don’t show any sign of disappearing any time soon as good old cash transactions continue to be challenged by the convenience of credit cards, debit cards, bank transfers, and other electronic forms of payment.
“As we’ve seen, chargebacks were designed as a form of consumer protection,” according to Chargebacks911. “But industry regulations have not kept pace with rapid changes in technology and payment options, and this has allowed chargebacks to become weapons consumers can use against merchants.”
For small and medium-sized businesses, the cost of chargebacks can have a significant impact on the company’s bottom line. Unfortunately, many businesses resign themselves to having to eat the costs of chargebacks. But that doesn’t have to be the case.
“Chargebacks cost businesses $31 billion in 2017,” said Ilyssa Kanan, Vice President of Sales at Chargebacks911. “There are false positives, returns fraud, increased banking costs. For merchants, they don’t even know how to get a handle on it.”
That’s where Chargebacks911 comes in.
Technology may have given rise to new forms of chargebacks, but Chargebacks911 uses technology to help companies prevent chargebacks and mitigate associated losses.
Chargeback Rates Vary by Industry, but Certain Business Types Run a Higher Risk
Kanan said chargebacks pose a larger problem in certain industries than they do in others, but they represent a significant issue in any industry that traffics in mobile and online payments. And she said the problem will continue to grow.
“It’s interesting, we’re finding in the restaurant vertical that, once they open an app or they start doing Grubhub or one of these food delivery services, their chargebacks can go up,” she said. “They’re an industry that has not really experienced chargeback before.”
Kanan said she remembers a 2013 study showed that the restaurant industry had one of the lowest chargeback rates of any industry — around 0.1% on average — but now 25% to 50% of restaurants see a chargeback rate of between 0.5% and 1%.
In addition to being able to help the restaurant industry regain control over its increasing chargeback rates, Chargebacks911 offers solutions for a wide range of other industries
Some of the main areas the company focuses on includes ecommerce, fashion, electronics, health and beauty, insurance, travel, hotels, events, ticketing, retail, gaming, dating, membership, and software.
It also supports institutions such as issuers and acquirers.
“Chargebacks911 provides unparalleled services to both acquirers and issuers,” according to the company website. “Personalized consulting, results-oriented strategies, and dynamic technologies position your financial institution for greater revenue retention and reduced operating expenses.”
Of course, chargebacks can impose a significant impact to the bottom line of small businesses, but large businesses can see benefits from Chargebacks911’s services, Kanan said.
“They might not have an exceptionally high chargeback rate,” she said. “But just because of the volume of business they’re doing, it makes sense for them to seek out a solution like this.”
Finding the Right Solution Based on the Customer’s Needs
Kanan said Chargebacks911 will assess each potential client’s needs to devise a customized plan that will provide the most impact.
“We’ll do an in-depth discovery analysis, depending on the business,” she said. “For example, we had a customer call us recently who runs an online business helping with student loan and credit card debt in collections. It’s a subscription-based online service.”
She said that, after conducting an analysis, Chargebacks911 set the customer up with its full backend chargeback services.
“It’s a software package that essentially handles all the chargeback issues for the company,” Kanan said. “And we also guarantee a win rate. Maybe today he’s winning 10% of his chargebacks, and we’ll get a win rate of 30% for the business.”
Oftentimes, the company can help its clients get a win rate even higher than the goal because Chargebacks911 has experience with similar clients within any given industry and also compiles vast amounts of data across multiple industries.
“That’s just one component of what we can do — representing the chargebacks,” Kanan said. “Another service we can offer customers is alerts. What an alert does is let the merchant know when a chargeback is coming. Then they can decide to refund it or how to take action very quickly.”
She said Chargebacks911 is also a facilitator of Visa Merchant Purchase Inquiries.
“I think it’s so exciting and really unique in the market,” she said. “They created this platform, and it’s quick, reliable, and lets the merchant know — even before an alert — if they want to refund it or how they want to handle a chargeback before it becomes a chargeback. So it saves a ton on ROI.”
How Chargebacks911 Helps Businesses Stop Leaving Money on the Table
“Chargebacks911 offers scalable solutions that are customized for any business of any size in any industry,” according to the website. “With the flexibility to accommodate a variety of payment options, sales methods, and dynamic transaction types, Chargebacks911 has what you need, when you need it.”
The company’s services can help businesses stop wasting valuable resources on inefficient management strategies by allowing them to replace reactive solutions with a proactive approach to experience unparalleled win rates and significant ROI, according to Chargebacks911.
Many merchants currently rely on partial solutions that provide insufficient results, but Chargebacks911 lets businesses incorporate their current efforts into its comprehensive chargeback management plans for enhanced data analysis, increased profits, and higher revenue.
The complex realm of payment processing and order fulfillment contains countless potential for chargebacks, according to the Chargebacks911 website. But the company’s experts have the tools and expertise to eradicate errors and reduce risk exposure from the start.
“Have you been believing the myth that it’s impossible to win a dispute for intangible products?” according to the website. “We have the tools you need and a guarantee you can trust to successfully recover lost revenue.”
Interested businesses can visit the Chargebacks911 website to request a product demo. “Schedule a demo now to get on your way to chargeback freedom,” according to the website.
“What’s so neat and unique about Chargebacks911 is that we provide a full end-to-end service,” Kanan said. “So, the customer comes and we have our initial analysis we do for them. Then, we look at how we can improve every aspect of their chargeback situation.
Establishing New Partners, Including Payment Processors and Acquirers
“It’s interesting how we’re approaching business because our foundation always has been merchant-to-merchant sales — reaching out to each merchant, getting them set up and quantifying it for them,” Kanan said. “But we see there’s even more layers to it.”
Because of this, Kanan said Chargebacks911 is focused on growing its partnership business by reaching out to more processors and acquirers, and others who touch the chargebacks industry, and offering to provide their customers with an additional value add.
“That’s where we’re expanding our business right now,” she said.