Chargebacks & Prevention
MasterCard and Visa have developed rules and systems to protect the interests of both Merchants and consumers: Merchants want payment guarantees for the products they have sold and consumers want to be assured of a timely and correct delivery of products or of compensation in case of fraud.
The E-commerce security products MasterCard SecureCode and Verified by Visa have been developed as a means to prevent fraud and offer a payment guarantee to entrepreneurs. The interests of card holders are protected by the system of ‘chargebacks’.
A ‘chargeback’ is a request by a card holder to his card issuing bank to reverse a credit card transaction in case of complaint or fraud. A chargeback can lead to a reversed charge to the Acceptant.
The risk of a chargeback depends a.o. on your:
- Acceptance process – can you make use of SecureCode & Verified by Visa?
- Fraud risk – how likely are you to suffer from fraudulent orders?
- Non-delivery-risk – how likely is it that products or services might turn out to be undeliverable?
- Customer Service level – are you always available? How do you handle return shipments and complaints?
- Quality of delivery – how likely are products to become defective or damaged?
Download the Chargebacks & Prevention brochure here to read more about Chargebacks & Prevention. This brochure will make you more aware of the consequences of chargebacks and inform you about measures of prevention.
EMS advises to read this brochure in conjunction with the brochures 'Credit Card Fraud & Prevention', ‘MasterCard SecureCode & Verified by Visa’ and 'Credit card data storage’