Chargebacks can hurt businesses a lot. They cost money, take up significant time, and potentially damage a business’ reputation to a point where a merchant can lose their license. Therefore, for any merchant, doing whatever is possible to reduce the number of such claims is very important.
Most of the time, it’s possible by providing excellent customer service, offering refund options, keeping in touch, and using secure payment protocols. However, there are still occasions when a consumer goes straight to their bank and illegitimately disputes a transaction, which can lead to a chargeback.
To prevent this from happening, you can use chargeback prevention alerts, as these provide the opportunity for your company to resolve a customer’s issue directly and quickly. One such service is Verifi, which offers notifications to merchants whenever a customer files a dispute. This guide will help you understand what this service is, what it offers, how it can help you secure your ROI and more.
What are Verifi CDRN Alerts?
Verifi is a company founded in 2005 and based in LA. Verifi CDRN (Chargeback Dispute Resolution Network) brings together various issuing banks to help merchants prevent and fight illegitimate payment disputes. Here’s how Verifi CDRN alerts work:
- A customer contacts their bank to dispute a transaction they made to buy your product or service.
- The bank considers their claim and starts the process of initiating a chargeback.
- Verifi CDRN receives an almost instant notification that a new dispute case has been opened against a merchant using Verifi CDRN alerts.
- The merchant is contacted right away and is given 72 hours to try and directly resolve whatever the customer’s issue is.
Verifi CDRN alerts lead to the freezing of the chargeback process for 72 hours. That gives your company plenty of time to fix whatever the problem is. If their claim is genuine, you might end up providing the customer with a refund or a replacement product. Otherwise, you can decide to fight the claim with your evidence if it seems like fraud.
What are the Benefits of Verifi Refund Notifications?
When you enable Verifi CDRN alerts and start getting Verifi refund notifications, you can enjoy the following benefits:
- You can contact the customer and clarify their issues with your product or service. You might have to send them a direct refund to solve the problem. Just make sure they retract their claim with the issuing bank before you do so. This means that with Verifi CDRN, you can avoid chargeback and additional fees.
- When you avoid a dispute, your company’s reputation remains intact, and your chargeback ratio remains low. A high ratio can sometimes lead to the revocation of your merchant license, so keeping it as low as possible is vital.
- In the case of friendly fraud, you get enough time to gather all the evidence you need to fight the claim and hopefully win the case.
Verifi refund notifications allow you to solve the problem proactively. Even if you end up sending the money back to the customer, you save a lot more with Verifi CDRN than you’d have to pay otherwise. That is why it’s essential for anyone wanting to avoid the extra cost of payment disputes to utilize Verifi refund notifications.
Is Verifi the Only Company Providing such Notices?
There is another large service with a similar network of issuing banks that offers the same notifications. Known as Ethoca, this company is based in Canada and works mainly with banks based in Asia, Europe, and Canada. Verifi, on the other hand, primarily supports US banks. Both these networks overlap with one another quite a bit, though.
If you sign up with both Ethoca and Verifi, your chances of getting alerts are much higher because you can access an extensive network of banks. On the other hand, this also means that you might pay double the amount and get duplicate notifications whenever a bank falls inside these services’ networks.
Why Let a Chargeback Management Company Process Warnings for You?
There are many reasons why hiring a dispute management company is a good idea if you face too many customer claims. Here are some of the main ones:
- A company that is an authorized reseller of Ethoca and/or Verifi CDRN programs will give you a complete chargeback prevention solution.
- You may not have to pay more fees than you would pay directly to an alert network. This will essentially give you much more value for the same amount you’d be paying anyway for alerts.
- You will be granted access to a unified portal that lays out everything regarding disputes in front of you without you having to log into multiple platforms to view your alerts.
What Percentage of Chargebacks Can CDRN Alerts Prevent?
On average, you can expect to avoid/resolve a little less than half (around 41%) of the claims made by customers when dealing with digital goods. However, with physical products, this number falls to about 21%.
What do I Need to Get Started with a Preventive Alert Network?
Other than some basic financial information, your preventive alert network requires access to your sales system to help resolve issues. Because of such an easy process, there’s no hassle that you have to deal with to start getting alerts that can help your business a lot in the long run.
Use Chargebackhit to Deal with Payment Disputes
Chargebackhit is a service that offers Verifi CDRN and Ethoca’s network coverage to give merchants the peace of mind they need to focus on running their business. We will take care of all your needs when it comes to preventing, resolving, and fighting payment claims.
The first step is to try and prevent such claims from taking place via Consumer Clarity and Order Insight. If such an issue arises, our service will get the relevant notification via an alert network and follow up with the issuing bank accordingly.
In case of fighting a claim, we will also help you build a strong and evidence-backed response to help you win against fraudulent cases. Utilizing CDRN, RDR, and other tools, we even offer automatic dispute resolution without the need for your involvement.
So, if you want to let the professionals take over your chargeback prevention needs, get in touch with Chargebackhit. Learn more about our products and services, and let us work on your behalf to save your ROI and enhance your business’ reputation.
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