Merchants Losing 60% of Chargeback Disputes–Chargebacks911 Comments on Amazon Chargeback Policies, Calls for Industry Balance
Chargeback911 comments on the effects of chargebacks on eCommerce merchants, citing Amazon’s charge dispute policies as evidence of the industry-wide need for unbiased administrators designated to render chargebacks manageable for online merchants.
TAMPA BAY, Fla., May 6, 2014 /PRNewswire-iReach/ — Despite their best efforts to counteract fraudulent and/or unjust chargebacks, many merchants are still losing a reported 60 percent of contested chargeback claims (1)–leading Chargebacks911, a dispute mitigation and risk management company, to question whether the chargeback policies of retailers such as Amazon leave much to be desired in way of merchant fairness.
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Chargebacks were originally designed to protect consumers from shady merchants, but have increasingly become an alternative refund method when a consumer is simply unsatisfied with a purchase or is attempting to get an item for free. Although merchants have begun fighting back against what they believe is a process partial to consumers, Chargebacks911 co-founder Monica Eaton-Cardone says that the odds are still falling in the consumer‘s favor–largely because the majority of contested disputes are high-ticket items, and international eCommerce company, Amazon, follows in line with these statistics, as well.
Eaton-Cardone says that Amazon’s chargeback policy operates much the same as many other large eCommerce websites–but the issue is that the individual resellers carry most of the liability, which is smart for Amazon, but not entirely fair for the supplier and not the best policy for holding some dishonest consumers accountable. Eaton-Cardone asserts that the company has several policy gaps that negatively impact merchants:
-- Amazon enforces communication between the buyer and seller directly; and often, the seller is only provided online support options--this often leads unsatisfied consumers to call their banks for resolution, a move that usually results in a chargeback being filed against the merchant. -- The company does not clearly indicate that there is a restocking fee on some refunds--a fee that is incurred by merchants when a product is returned and then again placed for sale. -- Amazon has also begun selling subscription-based products and there are online complaints that there is not an easy way to cancel or obtain a refund, leaving merchants vulnerable to Reason Code 41 claims, which encompass several liabilities that essentially mean the merchant is responsible for botched subscription-based charges.
“Like the majority of eCommerce businesses, merchants who sell through Amazon bear the burden of proof–if they fail to provide indisputable evidence to support the fact that they held up their end of the bargain, or they don’t respond within the allotted timeframe, they will lose the dispute, the associated funds and more often than not, the product as well,“ said Eaton-Cardone.
For companies like Amazon, Chargeback911 offers a focused solution that assists merchants in not only recouping funds, but also helps in reversing the statistic of chargebacks against the merchant altogether–a statistic that, if high enough, has the ability to cost merchants their ability to accept credit card payments–a move that would essentially put an eCommerce company out of business.
The healthiest direction a company can focus on is the future: monetizing their current customer base, improving their service, and expanding their future business, per Eaton-Cardone.
“Dealing with chargebacks takes up valuable resources and energy that are best spent on forward progress,” said Eaton-Cardone. “The process can be difficult to navigate, and smart companies would do well to delegate the process to a third-party administrator with the experience to assist the company in achieving more well-aligned progress.”
Rather than sticking with the old adage, “the customer is always right,” Chargebacks911 surveys chargeback customers to find out the real reason behind their chargeback claims–and sometimes, the reasoning isn’t in line with what chargebacks were created for, and the fault lies with the consumer, per Eaton-Cardone.
Chargebacks911 customizes statistics and reports because viable results are based on relative data and no merchant’s business is exactly the same. They believe that even the smallest variable can lend a different attribute, liability or advantage that would render a different decision than one otherwise based on incomplete analysis.
Chargebacks911 specializes in servicing merchants and the majority of banking institutions in mitigating chargeback disputes. The company has expanded its gross processing dollars to over $50 million per month for a variety of industries, including cosmetics and skin care, insurance and educational programs, private and public entities, healthcare companies, online dating sites, insurance, retail merchandise, and bid sites.
For more information about Chargebacks911 and its services, visit www.chargebacks911.com.
Co-founder Monica Eaton-Cardone established Chargebacks911 in September, 2012, out of necessity after many years as a merchant struggling to find a solution to chargeback issues. Chargebacks911 was developed specifically for merchants to offer immediate aid through proprietary technology and provide the necessary function that gives merchants the freedom to focus on their core competency and optimize their in-house skill set. Chargebacks911 specializes in servicing Internet merchants, and offers both response and resolution services for chargebacks and cardholder disputes. The company works with merchant clients to help them keep their dispute rates down and retain their ability to accept credit cards. Chargebacks911 provides a unique exception to standard dispute processing for dissatisfied consumers who wish to remedy transactional disputes, without the requirement of additional intermediaries or lengthy correspondence requirements. For more information, visit www.chargebacks911.com.
1. brandongaille.com/credit-card-chargeback-process-guide-for-visa-mastercard-and-amex/. July 20, 2013. Web. Feb. 6, 2014.
Karla Jo Helms
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