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Credit card Chargebacks are a serious threat to all businesses that process CNP (card not present) transactions. With the promotion of increasingly strict consumer protection regulations, merchants have become dangerously vulnerable to Chargebacks and their devastating consequences. Unfortunately, CNP businesses have few allies in this fierce battle. Everything about credit card transactions seems to favor and protect the consumer.

Many businesses are asking the same question. "Where can I turn for help?"

Merchant Marketing Sevices provides you with the tools, team, and experience to reduce your risk of chargebacks. Our team will also work directly with your staff to dispute chargebacks so that your will not only receive your funds back but you account will remain in good stead with the bank.

When customers contact their bank to dispute an e-commerce or CNP (card not present) charge, the card issuing banks has two basic options; issue a Chargeback Advice, or a Retrieval Request.

Processing regulations state that for a CNP transaction, a Chargeback Advice may be issued, instead of a Retrieval Request. Once a Chargeback Advice has been issued and posted to a merchant’s processing account, the damage is done. Even if later the business wins the Chargeback, the Chargeback fee has already been assessed, and the Chargeback counts against the merchants overall monthly Chargeback threshold.

Chargeback thresholds are calculated as follows:
Visa:

  • 100 sales
  • 100 Chargebacks and
  • Exceed a 1.00% ratio* of Chargebacks to transactions. (*current month’s transactions to current month’s Chargebacks)

MasterCard:

  • 50 sales
  • 50 Chargebacks and
  • Over .50% ratio* of Chargebacks to transactions for the month. (*current month’s Chargebacks to previous month’s transactions)

Risk Management.
Merchant Marketing Services USA has partnered with third pary Risk Management companies to insure that your transactions when processed safe and secure. Using our gateway solution through FASTeCOM, each card transaction is run through a fraud scrubbing system in real-time where the card, its owner, the billing address, the IP address, and other key data points are checked against a negative database. In addition, other real-time checks are made to see how many times the card has been used in the recent past and if there has been any noticable pattern changes in the use of the card. These techniques greatly reduce your risk and liability as a merchant.


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