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Any merchant processors that offer chargeback protection?

by eryeal
12 replies
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My apologies if this has been discussed prior .. but are there any merchant providers that offer chargeback protection, either as part of their standard services or an extra fee? I'd love to start selling my products via my own website, but the only thing that inhibits me is the fear of chargebacks. Say what you will - but selling on Amazon and Ebay, I've never paid for a chargeback, and I've had many, but Amazon/Ebay always covers it. But I'd love to get out from under the fees and sell the products on my own. Most of my products would be defined as "high risk" for chargebacks, and most are expensive, over $1k. So chargebacks would hurt considerably. Thanks.
#chargeback #merchant #offer #processors #protection
  • Profile picture of the author kjamesnv
    Paypal has some fraud protection when you use their merchant account system.

    However if you learn some techniques and follow best practices you can minimize charge backs to an acceptable level.

    Also there are some 3rd party systems available. I just read an article about a new company that will guarantee fraud protection. Here is a link to an article discussing this service
    E-Payments & Security - A fraud-prevention startup provides a no-loss guarantee to e-retailers - Internet Retailer
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    • Profile picture of the author BizOnTheWeb
      Originally Posted by kjamesnv View Post

      Paypal has some fraud protection when you use their merchant account system.

      However if you learn some techniques and follow best practices you can minimize charge backs to an acceptable level.

      Also there are some 3rd party systems available. I just read an article about a new company that will guarantee fraud protection. Here is a link to an article discussing this service
      E-Payments & Security - A fraud-prevention startup provides a no-loss guarantee to e-retailers - Internet Retailer
      I have had terrible experiences with PayPal and their "seller fraud protection." My best recommendation would be to stay so very far away from PayPal. I lost quite a bit of money! They are great for buyers - not so great for sellers.
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  • Profile picture of the author taurusvt212
    Try egopay
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  • Profile picture of the author serryjw
    Oh Boy! Sorry, there is no such of thing as chargebacks protection. Banks don't want merchant chargebacks. V/MC will always protect the cardholder first, unless it is blatant fraud. Are you in the US? You have a 'high risk' product line, have many chargebacks from unhappy customers with an average product cost of $1000....GOOD LUCK! My recommendation is to give your customers 30 days free before you bill or they can send it back if not satisfied..
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    • Profile picture of the author eryeal
      Originally Posted by serryjw View Post

      Oh Boy! Sorry, there is no such of thing as chargebacks protection. Banks don't want merchant chargebacks. V/MC will always protect the cardholder first, unless it is blatant fraud. Are you in the US? You have a 'high risk' product line, have many chargebacks from unhappy customers with an average product cost of $1000....GOOD LUCK! My recommendation is to give your customers 30 days free before you bill or they can send it back if not satisfied..
      Thanks for responding - you're a bit confused per my original post. I never said I have many chargebacks from unhappy customers - I have none. This is in regards to chargebacks filed for unauthorized purchase, stolen credit card, etc. My products are ones that those types of thieves target when purchasing. The same chargeback protection that both Paypal/Ebay and Amazon both supply to their sellers. Both Paypal and Amazon take the loss on authorized purchase chargebacks as long as the package was sent via Signature Confirmation. Thought that there may be a merchant provider as well that offers the exact same level of protection, and perhaps charges a higher per transaction fee.
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      • Profile picture of the author serryjw
        It appear that English is not your first language. I am trying to help but I am having a tough time following. What does this mean?
        I've never paid for a chargeback, and I've had many, but Amazon/Ebay always covers it.

        "High Risk" products are your problem. What kinda monthly volume do you do in the US? It isn't going to be easy to find a merchant BANK that wil deal with constant fraudulent transactions. I asked "Are you in the US, are most of your customers OUTSIDE of the US" Being in the IM business; having a solid, long term relationship with a merchant BANK is the most important element to IM success.
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        • Profile picture of the author Tobuso
          Chargeback protection comes in the form of a reserve that the MSP holds back. It could be from 5-25% of your sales depending on the risk. If you have a lot of returns this can happen too.

          I own a credit card processor.

          IM me if you have more questions.
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          • Profile picture of the author highriskmerchant
            For high risk there is no chargeback protection. A "hold back" is the way its handled, however this is still your money. One options is to look into other ways to collect payment. If you need assistance with your high risk account let me know.
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          • Profile picture of the author tonee
            Originally Posted by Tobuso View Post

            Chargeback protection comes in the form of a reserve that the MSP holds back. It could be from 5-25% of your sales depending on the risk. If you have a lot of returns this can happen too.

            I own a credit card processor.

            IM me if you have more questions.


            Can you Pm me please on micheystore@gmail.com.... I need a payment gateway for my site please... thanks
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  • Profile picture of the author Melody
    "Chargeback protection comes in the form of a reserve that the MSP holds back. It could be from 5-25% of your sales depending on the risk. If you have a lot of returns this can happen too."

    High Risk Merchant is correct - this is NOT chargeback protection for the merchant, this is chargeback protection for the PROCESSOR - and a payment processor would know that.

    There are a couple of companies that will 'guarantee' a transaction but typically for significantly smaller than your transactions would seem to be and for a pretty good sized premium over the transaction fee.

    To be honest - with your situation - you are probably not going to find the protection and savings that you are looking for, although alternative methods such as real time bank debit might be a good alternative.

    Melody
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    • Profile picture of the author mnwell
      Accept Bitcoin Payments
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  • Profile picture of the author GlobalPay
    Almost every merchant provider offers chargeback protection. BUT, there are also great third party companies that do that.

    First of all, if you have a First Data merchant account you can sign up to their Dispute Manager. It's like $29.95 per month and offers great chargeback prevention and answer tools.

    Then you have companies like "Verifi" that charge a monthly fee of say $100 and a per occurence fee for everytime they save you a chargeback...

    Hope I helped.
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