Their partnership promises best-in-class chargeback prevention, management and resolution for its global client base. Here, Kristian Gjerding, CEO of CellPoint Digital, and Monica Eaton-Cardone, Founder of Chargebacks911, detail how the combination of Payment Orchestration and dedicated chargeback solutions can help merchants avoid skyrocketing business costs. Written by Kristian Gjerding, CEO, CellPoint Digital and Monica Eaton-Cardone, Founder, Chargebacks911
Each year, the global average cost of chargebacks accounts for around 0.47% of total merchant revenue. Meanwhile, 40% of consumers who file a chargeback do it again within 60 days, and in a recent study, almost two-thirds of the 47 countries involved experienced an increase in their chargeback-to-transaction ratio.
Beyond the lost revenue in sales and the cost of merchandise, each dispute also comes with ancillary expenses. These include chargeback fees, administrative fees, and overhead costs like shipping, fulfilment, and customer acquisition costs. Add the cost of false declines and return fraud, and you’re looking at a significant hit to your bottom line.
The continued growth in eCommerce coupled with the proliferation of digital payments has resulted in an increase in fraud regulation and the complexity of managing chargebacks. Yet many merchants simply write off chargeback losses as an unavoidable part of running a retail business, partly because the payment dispute process can be difficult to understand.
But with a combination of Payment Orchestration and dedicated chargeback solutions, merchants can effectively manage and reduce these costs.
Tackling fraud with enhanced Payment Orchestration
Chargebacks are a time-consuming and costly distraction for merchants, but it is possible to reduce chargeback volumes and fees through automated transaction reviews by using a Payment Orchestration Platform.
Without Payment Orchestration, transactional data is spread over multiple gateways and payment providers, which makes it significantly harder to detect fraud. As a result, merchants benefit from real-time visibility and analytics, which can flag potentially fraudulent payments before they are processed.
By integrating dedicated chargeback resolution capabilities into a Payment Orchestration Platform as CellPoint Digital has by partnering with Chargebacks911, we can simplify the chargeback process even further, by intercepting disputes and avoiding chargebacks by replying in real-time with additional transaction information or refund confirmation.
But Payment Orchestration also unlocks a lesser-known chargeback-fighting tool; alternative payment methods (APMs).
The role of APMs in reducing chargebacks
By now we’re all aware of the importance of accepting a range of APMs, but aside from offering consumers greater choice and convenience, reduced chargebacks is another advantage of APMs over credit card payments.
Chargebacks occur when a customer requests the reversal of a credit card transaction. In this case, both the credit card issuer and the merchant bank review the claim, a process which could take weeks. The business can also raise a dispute against such claims, but that will only increase the chargeback period. Businesses suffer a lot in these situations as the payment gets stuck. These risks can be significantly reduced by using alternate payments from bank accounts and direct debit accounts.
But integrating new APMs manually is complicated and time-consuming, and waiting for a payment processor to add them means lost revenue. Using Payment Orchestration, merchants can easily adapt the checkout process to integrate new payment methods.
With CellPoint Digital’s Payment Orchestration Platform you can choose between 168 (and counting) APMs configured to meet your customer’s needs in every market you serve. As new payment methods continue to emerge, we are adding more all the time.
Chargebacks are not an unavoidable expense
The 2022 Chargeback Field Report found two-thirds of merchants reported a rise in friendly fraud over the past three years, with the average increase being 28%. This represents a startling increase in friendly fraud levels, particularly post-COVID.
Considering the explosive growth of ecommerce and cross-border transactions, and the anticipated related growth in chargebacks, writing-off chargebacks as an unavoidable business expense is a costly mistake.
By partnering with a Payment Orchestration expert that has integrated a dedicated chargeback solution, merchants can benefit from software that identifies and responds to illegitimate disputes and can reverse chargebacks to recover revenue lost to friendly fraud, which accounts for up to 78% of chargebacks.
About CellPoint Digital:
CellPoint Digital makes payments easier™ for airlines, travel companies and other international merchants and their customers. CellPoint Digital is a fintech leader in payment orchestration. Our main solution is a powerful omni-channel Payment Orchestration Platform that optimises digital payment transactions, from cards or alternative payment methods, and accelerates the deployment of new payment options. Merchants can easily scale their own payment eco-system across the world, unify the customer payment experience across their website, mobile apps and other channels, optimize the routing of each transaction, increase conversion rate and minimise payment costs. CellPoint Digital also provides an end-to-end digital commerce platform to airlines that masters the entire customer sales cycle and maximises the conversion rate. https://cellpointdigital.com/
Founded in 2011, Chargebacks911 is the first global company fully dedicated to mitigating chargeback risk and eliminating chargeback fraud. As industry-leading innovators, Chargebacks911 is credited with developing the most effective strategies for helping businesses manage disputes and reduce loss in various industries and sectors within the payments space.
Chargebacks911 provides comprehensive SaaS solutions that are highly scalable for managing chargebacks, handling services and fraud strategy management. The company helps decrease the negative impact of chargebacks and provides real-time API connectivity and insights, thereby improving revenue retention using data-driven technology to help ensure sustainable growth for every member of the payment channel.
Chargebacks911’s unparalleled category experience and patented Intelligence Source Detection (ISD™) technology identifies the true source of chargebacks, automatically remediates fraudulently filed disputes, safeguards reputations, monitors feedback 24/7 and provides insight to proactively prevent future fraud. www.chargebacks911.com