E-commerce merchants know the damage that chargebacks can do to their revenue and to their reputation.
A successful chargeback costs merchants more than double the original amount of the transaction, not to mention the fines and lower transaction approval rates that come with a high chargeback score.
What’s more, chargeback numbers have grown by 179 percent over the last two years, partly as a result of the COVID-19-driven boom in online commerce. The total cost is expected to exceed 40 billion dollars before 2025.
At Nuvei, we foresaw that more online transactions would lead to more chargebacks, and so, at the outbreak of the pandemic, we began enhancing our chargeback protection suite to create protection at every stage of a transaction.
Nuvei’s Chargeback Dispute Interface reflects our philosophy towards chargebacks – that it’s better to prevent them before they happen. We offer a range of tools which do exactly this, as well as a back office that provides detailed reports and early warnings, and representment services for those chargebacks which slip through the net. According to recent internal data, 40 percent of chargebacks or more can be prevented with these tools.
These solutions are vital for companies that understand the detrimental effect that chargebacks can have on their reputation and bottom line.
Our agnostic payment platform offers proprietary chargeback prevention and management mechanisms and is integrated with a range of third-party chargeback solutions such as Verifi by Visa and Ethoca by Mastercard.
Most importantly, Nuvei understands the delicate balance between transaction security and seamless payment journeys. This means being able to identify suspicious and fraudulent transactions that could become chargebacks and maintaining a user experience that inspires brand loyalty for our merchant partners.
How it works
- Dynamic 3D Secure – a fully PSD2-compliant smart routing engine. It performs risk analysis on every transaction and applies 3DS2 protocols when necessary. These transactions are verified with Strong Customer Authentication, transferring liability to the issuer and eliminating chargeback risk to the merchant completely.
- 3DS exemption management – in order to maintain our seamless payment journeys, our routing engine utilizes exemptions to send transactions on a shorter payment journey. These are defined according to industry, customer profile, transaction value, whitelists, recurring and subscription transactions, and more.
- Address Verification Service (AVS) – as part of our authorization process, we perform CVV2 checks to check if the numeric data of the transaction matches the data we already have in our system.
- Acquirer routing – a service that balances chargeback ratios by monitoring acquirer performance and routing transactions accordingly.
- Pre-chargeback mitigation – these fall into three main categories: issuer inquiries, issuer alerts, and automated refunds. We are integrated with three market-best solutions that greatly reduce the risk of chargebacks harming your revenue:
1) Verifi Order Insight – when a customer reports an unknown transaction, we respond on behalf of the merchant in real-time, providing all relevant transaction data and facilitating merchant/customer communication.
2) Verifi Rapid Dispute Resolution – when a chargeback is actioned, Visa charges Nuvei directly and refunds the issuer without any clearing process. This transaction is not registered as a chargeback. Nuvei is the first acquirer to offer this service.
3) Ethoca – provides a 24-hour alert to the merchant in case of a chargeback. This allows the merchant time to analyze the situation and decide how to respond.
Post chargeback solutions
Unfortunately, chargebacks cannot always be prevented. Nuvei’s chargeback suite is on hand in these cases too.
Our user-friendly case management dashboard provides you with an interface to manage disputes in an orderly manner. It displays the status of each case, following the flow from beginning to end, and provides a central platform to upload relevant documentation for representment.
Furthermore, it provides detailed reports and a risk analysis dashboard, providing you with the data you need to adjust your payment strategy.
Chargebacks are a bane to merchants, but with the right technology they can be prevented and managed.
Nuvei’s chargeback suite – available through one simple integration – helps merchants reduce friendly fraud, avoid fines, improve customer relationships, minimize operational costs, and ultimately improve revenue.
Like all other aspects of our payment technology suite, our chargeback services are acquirer and payment method agnostic and provide transparent, actionable analytics to help your drive conversions.
For more information about how to prevent and manage chargebacks and save money for your business, please don’t hesitate to contact me directly. I’ll be more than happy to discuss with you how your chargeback and fraud prevention strategy can be optimized.
|Adi Cahana, Head of Back-Office Product, has worked at Nuvei (formerly SafeCharge) since 2004. Adi holds an MA in law and a BA in information systems and marketing, and is fascinated by the ongoing challenges of digital identity and payment technology. He manages a team of five who work on Nuvei products in the fields of risk management, identity authentication, back-office and recurring payments. He is also in charge of our UX team.
In his free time, Adi enjoys travelling, listening to music, and cooking with his family.