Chargeback Alerts are a form of data sharing between participating chargebacks and merchants where merchants receive notifications on transactions or disputes that the chargeback is about to process into a chargeback providing the opportunity for merchants to resolve the problem or refund the transaction and prevent a chargeback from occurring.

chargeback Alerts are provided to merchants through the service provider who receives notifications from the cardholder’s issuing bank. It may be that the chargeback has identified fraudulent activity on a card before the cardholder does, or it may be that the cardholder initiated a dispute (fraud or non-fraud related) with the chargeback but the issuing bank will first address the dispute with the merchant directly through the service provider rather than going through the chargeback process with the card association. This route can benefit both the chargeback and merchant by avoiding the costs and operational processes associated with chargebacks.

Through chargeback Alerts merchants are able to respond to disputes or avoid them entirely by refunding transactions before they hit the cardholder’s statement and before they become a chargeback. If detected early enough, merchants may be able to stop fulfillment or cancel shipment on a physical good. Merchants can also perform link analysis to find other orders associated with the ones in which chargeback Alerts were received.

chargeback Alerts are also beneficial for avoiding chargebacks with billing and other non-fraud related issues. If a cardholder goes directly to their issuing bank to say they are owed a refund, were billed twice, want to cancel recurring charges or initiate some other dispute, and the chargeback is participating with an chargeback Alert service, then the issuing bank can work with the merchant directly to resolve the issue rather than go through the chargeback process. This saves both parties fees and resolves the issue more quickly for the cardholder.

To find out more about Chargeback Alerts contact Chargeback Defense Solutions 855-350-1106