While there are traditional ways to prevent chargebacks, these methods have become unreliable. The only true way to protect yourself as a merchant is to address chargebacks at their source. However, having a multi-layer strategy that you can maintain for a long time isn’t always feasible, which is why some companies are offering protection from chargebacks.
Is Full Protection Possible?
Whether merchants fight them or act like they never happen, chargebacks can take up a huge amount of a business owner’s time, energy, and billions of dollars from consumers disputing credit card charges.
Of course, you can dispute these chargebacks. However, it is better to invest in a chargeback protection system. Companies such as Ethoca are offering ways to ensure that you experience minimal fraud on your eCommerce site. Despite their ability to protect you, it is important to remember that full protection is not available for merchants because preventing all chargebacks is a very complicated process.
Does True Protection Exist?
Many people in the business world are on the hunt for a guaranteed method of protection. However, this does not exist. All chargebacks cannot be prevented.
Although this is the case, you can take significant steps to reduce your risk for loss and improve your bottom line. This true protection is essential for businesses in the eCommerce world. Initiating this protection involves a sustainable plan that will reduce your risk. Look for a company that will get you as close to full protection as possible.
Why Can’t All Chargebacks be Prevented?
To understand why merchants can’t prevent all chargebacks, you need to understand where these begin. Three things cause chargebacks criminal fraud, friendly, fraud, and merchant errors. Criminal fraud chargebacks can easily be reduced. Similarly, Merchant error chargebacks can be reduced as well. In fact, many protection systems can help eliminate almost all of these chargebacks.
However, friendly fraud is the reason full protection for merchants does not exist. On top of this, friendly fraud is the leading cause of chargebacks. This friendly fraud is caused by unpredictable consumer behavior, and there is no way to prevent it.
Unfortunately, there is no way for a merchant to receive full protection against chargebacks. However, there are certain protection systems available that can give you true protection. Be sure to look for a provider that offers some protection against the three types of chargebacks. This can be a big advantage when you face chargebacks in your eCommerce business.