What You Need to Know about EMV and Chargebacks

by: Heartland
Wednesday, October 14, 2015

 

 

Chargebacks are a costly problem for e-commerce merchants—to the tune of $40 billion each year. Whether caused by true fraud (identity theft or stolen payment cards) or friendly fraud (“buyer’s remorse” or disputing a legitimate charge), it’s something that all businesses deal with.

If you aren’t actively preventing chargebacks, your chargebacks will cost you.

And the problem is likely to pick up speed. The U.S. e-commerce market is expected to see a rise in fraud with the launch of EMV, causing hackers to switch focus from the card-present to card-not-present (CNP) environments. In fact, the Aite Group predicts that CNP fraud will jump $3.3 billion to $6.4 billion by 2018. This prediction played out previously in other countries that switched to EMV years ago. As criminals focus their efforts on e-commerce merchants, this will increase fraud-related costs, especially chargebacks, due to fraudulent purchases being made online.

To help reduce losses from chargebacks, Heartland has partnered with Verifi to provide merchants with access to their Cardholder Dispute Resolution Network™ (CDRN) –an award-winning chargeback management program that helps prevent chargebacks and protect payments.

Heartland supports thousands of e-commerce merchants, across a range of industry segments. We recognize that increasing volumes of customer disputes and chargebacks can negatively impact a merchant’s total cost of payment acceptance. Verifi is a service that can help merchants minimize costs associated with their online payments program.

Verifi’s CDRN solution has an extensive and growing network of top card issuers that in some cases can help merchants reduce up to 40 percent* of their chargebacks. Other benefits include:

  • Complete coverage—prevents BOTH fraud and non-fraud chargebacks

  • Real-time notifications to stop losses—prevent chargebacks from additional billings and stop losses from fulfillment of goods and services

  • 100 percent accuracy—with Verifi’s zero-defect guarantee if a CDRN case is successfully resolved but later filed as a chargeback, you don’t pay

  • Protect your bottom line—Avoid costly fees, fines, penalties, and potential loss of your processing privileges

  • Avoid “false positives”—some solutions create dispute signals that don’t turn into actual chargebacks, adding costs for protection that you don’t need

  • Improve staff allocation—CDRN takes the burden off your staff so you save time to focus on your business

Verifi’s CDRN service is available as a fully managed service or via self-service merchant portal, and processes hundreds of thousands of chargebacks a month for businesses of all sizes. Also, setup is easy and requires little to no IT involvement and can be live in a matter of days.


To learn more about Verifi and how it can help your business, please contact us at:


 

*Cardholder Dispute Resolution Network™ (CDRN): Results may vary on a case by case basis. Terms subject to contractual provisions.