Chargeback Reduction Programs & Intercept Services

In the high-risk merchant sector, it is known that chargebacks are an issue so many business owners may need to implement chargeback reduction programs to help lower chargeback counts and percentages. For some merchants, chargebacks are a severe issue and a merchant with excessive chargebacks can even have their merchant account(s) terminated. Card associations such as Visa and MasterCard also have chargeback thresholds that merchants must comply with in order to accept and process cards. It is the nature of the business for some merchants to endure high chargebacks due to the products/services sold, the billing model such as having recurring model, or they may incur high fraud. For whatever the reason may be, it is important to stay on top of managing chargebacks. Optimus is constantly helping clients keep their chargebacks low and mitigating them as much as possible. We offer two chargeback intercept programs, which are aimed towards cutting fraud and non-fraud related chargebacks. Reducing chargebacks up to 30% when both services are used, these intercept programs may save some businesses from being terminated for high chargebacks.

When a merchant is setup on these programs, our system works with both the card issuer (customer) and the acquiring bank (merchant). When a customer files a chargeback with their issuer, the issuer will then notify the acquiring bank to collect the chargeback funds. Our system is alerted when the issuer notifies with acquirer and sends a real-time alert to the merchant so they can take action. Typically merchants refund the chargeback immediately then select the option that they have refunded the money in the alert portal, which then informs our system so we can communicate this back to the bank to cancel the chargeback. When used properly and efficiently, chargebacks that are refunded will be completely cancelled and not counted towards the merchants monthly count and ratio. This alert program operates seven days a week, 365 days a year to maximize chargeback protection.

Some of the key features of the program are:

  • Help your business mitigate card-not-present (CNP) chargebacks by real-time alerts
  • Avoid financial losses related to lost goods/services and chargeback costs, while maintaining acceptable chargeback levels with your processor
  • Merchants will be notified to act on the chargeback alert by providing an outcome and issuing a refund before the chargeback process officially begins
  • Accounts are setup within 24 hours of receipt and merchants will receive free online training so they fully understand how the system works to fully utilize all of the features
  • Merchants can link all of their descriptors and merchant account (MIDs) to our alert system to avoid as many chargeback losses as possible, thus putting more money back into our merchants pockets

Some of the business types that benefit from this program include:

  • Online Adult Businesses
  • Nutraceuticals
  • Recurring/Continuity and Membership Programs
  • Online Gaming
  • High Volume Businesses
  • Internet Gambling & Online Casinos
  • Direct Response Marketing
  • Infomercials
  • Extended Warranty Programs

Our chargeback reduction programs are very successful and can help most businesses cut chargebacks significantly! As always, Optimus's team is here to help with any questions, so please fill out our contact us page.