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A chargeback is a reversal of a credit card transaction, typically initiated when a customer disputes the legitimacy of a financial transaction. Chargebacks hurt your bottom line by eliminating potential revenue. When they occur frequently (exceed certain thresholds set by credit card issuers) they can raise merchant’s transaction costs or even your ability to accept credit payments. When a chargeback occurs, the amount of the disputed transaction is taken back, often with an additional payment provider fee. If you cannot prove the legitimacy of the original transaction, you lose the product sold, payment for the product, transaction processing fees, applicable currency conversion commissions, and any additional chargeback processing fees. You need to be able to effectively address chargebacks, without draining internal resources. Additionally, it is hard to garner feedback from a chargeback, why was the customer unhappy and why they approached their credit card company rather than your customer support. Additionally, Vindicia Subscribe is integrated with Verifi’s CDRN system, which can allow you to address disputes before they become chargebacks. Note: This automated solution is relevant for merchants with their own Verifi CDRN agreement. Subscribe allows you to view Chargebacks in the system to ensure customers do not exceed chargeback limits/thresholds set by payment providers. Chargebacks can be loaded by file import, by API, or by automated payment provider loading, thus allowing timely updates of Chargebacks. Subscribe supports the following payment providers for automatic Chargeback loading:
  • Adyen
  • Chase Paymentech
  • Vantiv ecommerce (Litle)
  • BarcaPG
  • Stripe
Chargebacks are associated to the original transaction that is being disputed. Subscribe allows merchants to decide whether a disputed transaction cancels the associated Subscription or allows it to remain active and allows you to reach out to your customer. Subscribe Reports provide you the analysis you need to understand your Chargeback standing, such as:
  • Chargeback reason code reports analyzing the payment providers reason codes
  • Insight to Chargeback counts per BIN (bank identifier)
  • Interval between transaction and dispute
Subscribe Merchant Portal displays all the chargeback details allowing your internal dispute team to fight back against chargebacks. Alternatively, you can choose to use Vindicia’s ChargeGuard Service as an add-on service. Parent topic:Subscribe Payment Support

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Vindicia ChargeGuard Add-On Service

Vindicia ChargeGuard solution is an add-on service that you can use with your Subscribe environment. It is designed to represent merchants for:
  • Dispute Prevention: a wide alert network though our partnerships with issuing banks allows you to avoid a chargeback by refunding or canceling a subscription when a customer seeks to dispute.
  • Dispute Response: Once a dispute is filed, we identify more illegitimate chargebacks and win more reversals than any other solution providing you a revenue recovery strategy. Our cases are compelling, accurate, and less likely to result in pre-arbitration, allowing you the merchant to mend customer relationships and improve your reputation with issuing banks.
  • Dispute Intelligence: Our dispute intelligence provides actionable and accurate data for analysis, machine learning, and future decision making. We allow merchants to see beyond the reason code so that chargebacks can be addressed at their source.
When a chargeback occurs, the payment provider will send back all the relevant details. These can be stored as part of your Vindicia Subscribe environment. A detailed record of it is stored in your merchant account, including the original transaction or transactions to which it applies. Vindicia ChargeGuard can then use this information to fight, resolve, and win chargebacks for you. Vindicia first assesses the information reported by your customer and by you. If a chargeback appears to be fraudulent, Vindicia disputes it on your behalf. Vindicia ChargeGuard highlights include:
  • Full Chargeback management services including disputing fraudulent chargebacks and best practice recommendations
  • Automated processes and platform for managing chargebacks and disputing them
  • Full integration with top payment providers such as Chase Paymentech
  • A wide alert network to prevent dispute filing
  • International Chargeback management
  • PCI Level 1 compliance ensure secure scaling
  • On demand Reports and API’s to retrieve data and insight
Parent topic:Chargeback Handling in Subscribe