Frightful FraudstersBe Afraid. Be VERY Afraid…

The Real Monsters Are Lurking in Your Payment Chain

Ever get that eerie feeling, like you’re being stalked? That there are strange eyes following your every move, just waiting for the chance to snatch not your brains… but your revenue?

It’s nothing you can put your finger on. Just a premonition that something is Not. Quite. Right.

Now, as a rule, we’re not into scare tactics. Heading into the Halloween hustle, though, there’s one danger we felt we had to point out: Your revenue isn’t as safe as you think. 

It’s true. Fraudsters, chargebacks, and friendly fraud spooks abound, and they are frightfully efficient at popping out of the shadows and grabbing your profits.

You don’t have to be the victim of these blood-sucking creatures, but you can’t ignore them, either: there’s just too much at stake. It’s time to stop whistling past the graveyard and pay attention to the hideous fiends who could be unaliving your bottom line.

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A buyer who looks like a respectable (if slightly overdressed) customer by day can turn into a blood-sucking vampire by night. I’m talking about cybershoplifters, of course.

Cybershoplifters can drain your profits in no time. They’ll make a purchase, receive their order, then file a phony chargeback, deliberately abusing the chargeback process. In other words: they sink their fangs into you before transforming into a ghoul that vanishes into the mist. 

Of course, vampires must be invited in. But, without upfront cardholder verification, that’s exactly what you’re doing. You might as well just hand them the keys to your castle.

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Not all chargebacks are deliberate theft. A lot of customers are perfectly normal most of the time. Once in a full moon, however, they become ferocious, profit-eating beasts.

Otherwise-legitimate cardholders might file costly chargebacks because it’s more convenient than asking for a return. Or, because they simply don’t want to confront you and possibly get rejected. It’s enough to leave you howling at the moon yourself.

Some say they’re cursed, but you’re the one that feels the bite. Afterwards, they may revert to regular customers… but don’t count on it. Successful chargebacks typically lead to more disputes. That means the next attack could happen sooner than you think.

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They were once a living, breathing customer, but then the relationship died. A loyal customer no longer wants to have anything to do with you.

Why? It’s often because you won a reversal on a chargeback they filed. Feeling cheated, they pull a Casper on you, vanishing without so much as a “Boo!” 

Think it’s all over? Think again. They may never rattle chains at your store again, but that won’t stop them from wailing to their friends and family, telling them not to do business with you. They could also haunt your Google or Yelp profile with spine-chilling reviews. That sort of thing can turn you white as a sheet.

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Got recurring chargebacks that won’t go away? Don’t blame Ol’ Doc Frankenstein: you may be the one bringing these creatures to life.

Look closely, and you’ll likely find a flaw or two in your formula. Not shipping orders with lightning speed, for example. Or, failing to address the complaints of those angry villagers.

Next thing you know, the monster is loose and wreaking havoc on your bottom line. Fixing the problem won’t take torches and pitchforks, though. All you need is a top-to-bottom look at all your processes and policies.

Examine your procedures from the customer’s vantage point. There may be pain points that you hadn’t considered. When you spot these potential problems, grab your sewing needle and patch up any leaks you find (or sew back on any loose limbs).

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So you fought a bogus chargeback, and you won. Great! You think the issue is dead. You have it all wrapped up and laid to rest… until it rises from the tomb as a second chargeback, that is.

Second-round disputes (known as pre-arbitration or an arbitration chargeback, depending on the card network) occur when you submit a response to a chargeback, but the bank rejects your response and sides with the customer.

The spook shuffles toward you, arms reaching out to grab back the money you already grabbed back from them.

It’s decision time. Should you fight? Or, should you cut your losses and run into the cold desert night? Either way, ignoring this horror would be a grave mistake.

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So, you got a chargeback, but you don’t even consider this a threat at first. After all, it’s an obvious case of friendly fraud, and you can prove it.

This dispute is an empty threat with no meat, right? Maybe. The danger here could be quite subtle. Despite their rattle, these bones can sneak up on you like a wraith.

If you’re not paying attention, you could miss the filing deadline. Even if you have solid evidence, you’re still going to lose the case if your response is submitted late.

And, while a successful representment could mean a reversal, the dispute will still impact your chargeback ratio. You’ll waste time and resources fighting that grim, grinning ghost back into the crypt, too. Even if you win, you lose.

Creepin’ It Real

Reaping the results of chargebacks can leave you grim. So, when there’s something weird in your CRM… who ya gonna call?

How about Chargebacks911.

Our automation tools for end-to-end dispute management are your silver bullet, garlic, and holy water, all in one. We offer exclusive strategies that work like a charm, with positive results that appear just like magic.

Tired of tricks? Ready for treats? That’s the spirit! Lose the goosebumps… contact us today.