Chargebacks happen when customers dispute a credit card charge, leading the bank to reverse the transaction. While this process protects consumers from fraud or billing errors, it often leaves merchants with financial losses and additional fees. With 27% of retailers reporting an increase in chargebacks, businesses must adopt strategies to prevent chargebacks and safeguard revenue.
VELLIS NEWS
1 Apr 2025
By Vellis Team
Vellis Team
Automate your expense tracking with our advanced tools. Categorize your expenditures
Related Articles
Vellis News
31 March 2025
High-risk industries often face significant challenges in securing reliable payment processing solutions. Traditional payment processors tend to avoid these sectors due to increased risks of chargebacks, fraud, and regulatory scrutiny. However, specialized high-risk payment gateways offer tailored solutions to meet the unique needs of these businesses, especially for platforms like BigCommerce and WooCommerce.
Vellis News
11 April 2025
International Financial Reporting Standards (IFRS) are globally recognized accounting rules designed to make financial statements consistent, comparable, and transparent across borders.
Vellis News
31 March 2025
Ecommerce payment integration is essential for online businesses to process transactions securely and efficiently. It connects a store’s checkout system to payment processors, enabling seamless transactions through various methods like credit cards, digital wallets, and bank transfers. By implementing the right ecommerce payment solutions, businesses can enhance customer experience, improve security, and boost sales.
Understanding why chargebacks occur is the first step in prevention. The main causes include:
Implementing clear policies stands as a crucial step in preventing chargebacks and avoiding misunderstandings with customers right from the start.
Enhancing transaction security helps merchants minimize chargebacks by detecting and blocking fraudulent activity before it impacts their business.
Providing excellent customer service involves offering accessible support, timely communication, and an efficient dispute resolution process to enhance customer satisfaction and prevent chargebacks.
Keeping precise transaction and delivery records aids in fighting chargebacks effectively.
Monitoring and reviewing transactions helps in spotting unusual patterns that could indicate fraud and prevent chargebacks.
Fighting chargebacks requires working closely with payment providers to challenge unauthorized disputes successfully.
Future trends in chargeback prevention focus on integrating advanced technologie to bolster better security measures for transactions.
Machine learning capabilities excel in fraud detection tools, taking proactive steps to prevent chargeback fraud before it impacts merchants. These technologies analyze massive amounts of data to analyze purchasing behavior and flag potential chargeback fraud before it happens.
Blockchain technology plays a vital role in amplifying transaction security. It harbors data across a network of computers, making the alternation of transaction histories nearly unachievable.
Merchants can utilize blockchain to authenticate transactions and minimize deceptive activities that often result in chargebacks.
As payment security standards alter, merchants are incorporating novel technologies to prevent chargebacks and boost transaction safety. Having Vellis’ payment processing services allows merchants to stay ahead of security advancements to further reduce fraudulent chargebacks.
Understanding how to prevent chargebacks, chargeback fraud, and various payment methods like what is e wallet is critical for businesses aiming to protect their bottom line. Implementing fraud detection, clear policies, excellent customer service, and secure transactions can significantly reduce chargeback risks and improve overall business operations.
A chargeback is a forced transaction reversal initiated by the cardholder’s bank due to a dispute. The bank investigates and, if valid, refunds the customer.
Businesses can prevent fraud-related chargebacks by using AVS, CVV verification, 3D Secure, and monitoring high-risk transactions.
Businesses should review the chargeback reason code, gather evidence, and submit a response to their payment processor within the given timeframe.
Yes, merchants can dispute a chargeback by providing proof that the transaction was valid and the product or service was delivered as described.
Fast and responsive customer service can resolve issues before customers resort to chargebacks. Providing clear refund and dispute policies also helps.
PCI Security Standards Council. (2023). Guidelines for preventing chargeback fraud in online payments. Retrieved from pcisecuritystandards.org/document_library
Ready to transform your financial management?
Sign up with Vellis today and unlock the full potential of your finances.
Related Articles
Vellis News
12 May 2025
A new report from Vellis Financial ranks 30 European cities by startup cost. It highlights where entrepreneurs and remote founders will need deep pockets, alongside which locations they can launch lean and stretch capital further.
Vellis News
25 March 2025
In this thriving tech frenzy world, where digital transformations are shaping the world of finance, it has become utterly challenging to keep track of numerous payment alterations. Real time payments or RTPs focus on enabling easier, faster, and more productive payment methods that enable immediate transfer of funds 24/7.
Vellis News
31 March 2025
Finding the right payment processor can be a headache for high-risk businesses. You need to find a processor that has tried and tested fraud prevention and risk management strategies. A good processor lets you grow your business despite being in a high-risk landscape.
We use cookies to improve your experience and ensure our website functions properly. You can manage your preferences below. For more information, please refer to our Privacy Policy.
© 2025 Vellis Inc.
Vellis Inc. is authorized as a Money Services Business by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) number M24204235. Vellis Inc. is a company registered in Canada, number 1000610768, headquartered at 30 Eglinton Avenue West, Mississauga, Ontario L5R3E7, Canada.