Introducing: Chargeflow Alerts- Your Shield Against Chargebacks

In the fast-paced world of eCommerce, every transaction is a story waiting to unfold. Unfortunately, not all stories have a happy ending, especially when it comes to chargebacks. They cost businesses three times the transaction value, jeopardize customer satisfaction, and pose a constant threat to your bottom line. As an eCommerce veteran, you're likely all too familiar with this pain point.

Chargebacks are a merchants nightmare, leading to significant financial losses. It's tough to catch every fraudulent transaction or suspicious order. These issues result in financial losses and administrative fees. Chargeback alerts enable real-time communication between card issuers and merchants. This collaboration is key to managing chargebacks effectively, yet the lack of it worsens the problem.

Now, let's talk about Chargeflow Alerts.

Chargeflow Alerts, crafted to tackle eCommerce challenges, are now available. They are powered by Card Dispute Resolution Network (CDRN), Rapid Dispute Resolution (RDR), Ethoca, and a sprinkle of Chargeflow magic ✨. They can prevent up to 70% of chargebacks within 24 hours. It's a solution specifically crafted specifically for merchants, helps you take action to protect your business. You only pay for the chargebacks you prevent. Check it out!

While chargeback alert systems like CDRN alerts and Ethoca alerts offer significant chargeback protection to merchants, Chargeflow Alerts take it a step further.

In this article, we'll delve into the world of chargeback alerts, specifically focusing on Cardholder Dispute Resolution Network (CDRN) chargeback alerts and how the CDRN system operates. Discover how Chargeflow Alerts can be your trusted partner in the fight against chargebacks.

What are Chargeback Alerts?

Chargeback Alerts are a dispute mediation tool that helps merchants resolve customer dissatisfaction before they turn into costly chargebacks. Chargeback management specialists work closely with financial institutions to deliver notifications of impending chargebacks to vendors, especially in case of fraudulent transactions.

The merchant then has ample time (between 24-72 hours) to resolve the issue and avoid chargebacks.

It’s crucial to note that chargeback alerts are not the same as chargeback notifications.

While a chargeback notification is a letter informing the merchant about an actual customer dispute that a cardholder has already filed, a chargeback alert gives the merchant information about a potential case before the customer initiates them. Think of the latter as a forewarning of a potential dispute.

How Do Alerts Help Prevent Chargebacks?

Chargeback alerts close the information gap between merchants and issuers to reduce chargebacks.

Instead of waiting for 3 to 6 weeks for a notification, merchants receive a CDRN alert within minutes, hours, or days.

Here's how it works:

As soon as the service provider gets cardholder documentation from card issuers, they create an alert and send it to the affected vendor. You, the business owner, can then use this information to halt the order process for payment protection, thereby preventing management fees and other ancillary chargeback charges.

With all that said, we must also inform you that chargeback alerts aim to help vendors proactively refund and mediate legitimate chargebacks to prevent chargebacks. That potentially reduces the processing fees for cases the merchant does not expect to win. Equally vital, if the customer is a victim of payments fraud on any payment processor, such proactive dispute mediation offers a better user experience by effectively returning the money to the actual card owner.

While a refund should not be your expected outcome, refunding the customer shields your company against the potential loss of processing rights incidental to elevated chargeback cases.

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In the subsequent sections, we review the two major networks providing chargeback alert solution:

#1: Verifi CDRN Alerts

Verifi Cardholder Dispute Resolution Network (CDRN) is a chargeback management program that provides merchants with an advance chargeback notice as prevention alerts.

CDRN intercepts disputes on your behalf before they turn into full-blown chargebacks. Merchants that subscribe to the system get CDRN alerts when a cardholder tries to initiate a dispute with their card network.

Verifi CDRN acts as an intermediary between banks/issuers and merchants to detect cardholder disputes set in motion by participating card issuers. The system intercepts pending cases and alerts the merchant ahead of time.

The vendor then has a brief moment during which the dispute process stops. If they successfully remediate the case, they can avoid the chargeback altogether. The prior notice also helps the merchant to prepare for representment if they believe the chargeback is meritless or fraudulent.

#2: Ethoca Alerts

Ethoca Alerts is a proprietary chargeback management product as a alert network of Ethoca.

Like CDRN alerts, Ethoca Alerts intercept and interrupts the progression of cardholder disputes set in motion by participating card issuers.

The system identifies an incoming chargeback with almost real-time accuracy and notifies you so you can remediate the case instead of letting it turn into a chargeback.

It stops the case from being escalated to an outright chargeback immediately after it begins with the card issuer. And you have the opportunity to resolve it outside the payment authorization channel. That is, without involving your acquirer, thereby avoiding administrative charges and hits to your chargeback ratio.

In a nutshell, these alerts help you choose your preferred course of action for a cardholder dispute.

But you should also know that the service is not free.

Verifi CDRN and Ethoca Alerts attract a definite fee per alert, irrespective of your response. Considering these costs, it pays to do your due diligence before choosing an alert service provider.

Verifi CDRN and Ethoca Alerts: Similarities and Variances

While there is a significant overlap between CDRN alerts and Ethoca alerts, some variances also exist.

Similarities

• Both networks work with a wide array of card issuers, which makes it possible for them to offer extensive protection with chargeback alerts.
• Vendors will not receive a chargeback alert from a card issuer that’s does not belong to the network.
• The response time limit for merchants is between 24 to 72 hours of receiving an alert – failure to respond means the case will proceed to a chargeback.
• Both networks charge the vendor $40 for an alert.

Variances

• Verifi covers card issuers in the United States.
• Ethoca's network stretches across banks in Europe, Asia, and Canada.

Some vendors find more value in onboarding both services for better coverage. The caveat is to pay attention to cost/benefit side of things. You might have double dispute alerts, meaning double fees when a cardholder initiates a dispute at a bank belonging to both service providers.

Is CDRN Alert the Ultimate Solution for Chargebacks?

CDRN alerts are unquestionably needful in helping merchants prevent some chargebacks. And if you already encounter chargeback losses, you should consider enrolling for CDRN alerts as it will reduce the occurrence of chargebacks.

Yet, they’re not a reliable long-term dispute mitigation strategy for comprehensive protection.

For one, the alerts cannot address the causes and sources of your chargebacks or consumer dispute. They only tell you there’s a potential case coming your way. Neither do they help you limit lost transaction revenue and goods.

And two, the number of years you’ve been in operation plays a crucial role in the quality of the coverage you get. Established vendors get better protection than rookie merchants. As we noted earlier, that means spending more money and often dealing with duplicate alerts and bills from both Ethoca & Verifi.

Automating Chargebacks with Chargeflow: A Comprehensive Approach

Automating chargebacks with Chargeflow streamlines dispute handling, safeguarding resources and customer relations while being cost-effective. This approach significantly lowers the risk of alienating genuine customers. Additionally, research shows that merchants using automated chargebacks experience an impressive ROI increase of 800 to 1,500 percent, marking a substantial improvement over traditional methods.

Our very owen Dov Carpe explains how Chargeback Alerts work and how Chargeflow can help automate them:

Chargeflow's Advanced Automation Features

Chargeflow offers a sophisticated chargeback automation solution, equipped with several key capabilities:

• Transaction Tracking: Utilize advanced order insights and AI-generated analyses to effectively track suspicious transactions.
• End-to-End Management: Manage the entire chargeback process efficiently. From the initial dispute to its resolution, everything is handled on autopilot, backed by insights from over 50 data points.
• Behavior Analysis: Gain visibility into user transaction behaviors. This feature helps in identifying patterns, plugging loopholes, and predicting future chargeback-prone transactions.
• Revenue Management: Streamline your revenue management process. By foreseeing potential chargebacks, you can take proactive measures to mitigate risks.
• Strategic Alignment: Align your business strategies with evolving fraud dynamics. This proactive approach ensures you stay ahead in the dynamic eCommerce landscape.

Our data shows that merchants using our fully automated chargebacks get an average of 75%-win rate instead of the industry average of 12%.

Benefits of Chargeflow Alerts

Chargeflow Alerts enhance your chargeback management with several unique benefits:

• Alerts Guarantee: Pay only for alerts that effectively prevent chargebacks.
• Zero Duplication Charges: Our unique technology ensures there are no duplicate charges for the same alert.
• One-Click Onboarding and Offboarding: Enjoy a seamless transition in less than 24 hours.
• No Dispute Fee: Avoid the standard $15 dispute fee for each prevented chargeback.
• Fully Hands-Off with Automated Refunds: Our system automatically matches and processes refunds.
• Guaranteed Decrease in Dispute Rate: Experience a tangible reduction in your dispute rates.
• Full Integration with Chargeflow Automation: Benefit from comprehensive 360° protection.
• Universal Processor Compatibility: Compatible with every major payment processor, including all major card companies, for increased transaction acceptance.

Navigating Chargebacks with Confidence

Navigating the complexities of chargebacks in eCommerce is crucial for safeguarding your revenue and customer trust. While CDRN and Ethoca Alerts provide a proactive stance in managing disputes, integrating Chargeflow's automation and alert system offers an additional edge.

Embrace a holistic approach to chargeback management. Discover how Chargeflow, coupled with CDRN and Ethoca Alerts, can enhance your ability to preemptively address and efficiently resolve chargebacks. Take a step towards a more secure and profitable eCommerce experience.

Explore the difference today. Secure your transactions, protect your bottom line. Ready to enhance your chargeback strategy?

Reach out to Chargeflow today and start your journey towards a more resilient eCommerce operation.