How to Fix 90% of Conflicts in Favor of the Merchant?

Originally designed as a buyer safety mechanism, disputes or chargebacks are now a significant risk to the business. They occur more frequently than one might expect and harm the merchant's credit record, legitimacy, and brand loyalty. Regrettably, merchants have no idea how to win chargeback conflicts.

The fact of the matter is that some chargebacks are unnecessary. A small refund would suffice.

For example, 5% of chargebacks occur because the item bought was unable to meet the buyer's expectations. Another 5% happen as a result of the product not matching the specifications given on the website.

Some, on the other hand, are completely fair. Thus, 30% of chargebacks occur as a result of a theft credit card transaction, 27% as a result of the bought product never arriving, and approximately 15% as a result of the wrong product being sent.

A high chargeback percentage has serious ramifications for merchants. In this blog post, you will get to know about the chargeback process and how Myuser can assist legitimate merchants in resolving the majority of these chargebacks in their favor.

Rear View of the Chargeback Process

A chargeback, also known as a payment reversal, occurs when a buyer contacts his card company and makes a refund request for a product he or she is dissatisfied with, never delivered, or not actually bought. It may appear that it involves only two parties – the buyer and the seller. To give a reality check, there are five major parties involved in this process.

By now you already know about a buyer, a seller, and the credit card provider in charge of the entire transaction. However,  there are two more included behind the curtain. The  acquirer and the issuer are the two other parties involved in the transaction. The former collects exchanges on behalf of the seller. The second one is concerned with issuing the card with which the payment is made.

An Acquirer notifies a merchant as soon as the buyer documents a chargeback with the credit card provider. He is then required to disclose essential transaction details in order to validate or refute a fraudulent transaction.

If a middle man is included in the process such as a payment service provider, the stream alters a little. A payment service provider (PSP) delivers the papers to an acquiring bank, which then forwards them to the issuing bank. Following that, the cardholder must admit that the goods or services paid for were delivered, or the conflict continues. In the event of a persisting dispute, the issuing bank notifies the acquirer of the reasons why the records they sent were insufficient. The acquirer forwards the documents to a PSP, who then transfers them to the merchant. At this level, the merchant must decide whether to continue the dispute or refund the money. The dispute is then handled by Visa or MasterCard. They must base their opinions on all of the paperwork obtained from the merchant as well as the statement of the issuing bank. At this point, the losing party will pay the $500 USD dispute resolution fee.

How Can Merchants Increase Their Chances of Winning Disputes?

With cutting-edge chargeback prevention techniques, whether owned by a third party or established in-house, any merchant can improve his chances of winning chargeback conflicts.

As a result, you can employ the service of Myuser. This will enable legitimate merchants to minimize their dispute rate and help to keep the merchant's payment history healthy. Minimize disputes with Myuser in the same manner that Amazon, eBay, and Paypal do. We provide chargeback prevention for legitimate users and protect them from deceitful buyers. If you are at high risk, we will significantly reduce the number of disputes and design a solution that is unique to you.

Myuser conveniently promotes businesses such as replica-selling businesses, dropshipping, and e-commerce with a dispute rate more than 1%. Myuser does not flag legitimate users or freeze their funds. Myuser is the very first payment processor for high-risk firms that acknowledges non-frozen funds. Myuser focuses on business growth. We encourage businesses to increase their profits and scale-up. As a result, we provide dependable customer support 24 hours a day, seven days a week to ensure that all of your questions are answered in a long-term manner.

How Myuser Handles Chargeback Requests?

Myuser reduces chargeback in the same manner as Amazon does. In this situation, customers are notified and given the opportunity to open a chargeback by email, which has no effect on the banks' dispute rate. This is how we reduce chargebacks: we turn them into internal ones. Buyers can provide evidence through Myuser's dashboard. We even give it to the bank if customer’s establish an account with the bank. If they were opened through Myuser, we sent evidence to the customer and seek to encourage them to settle the chargeback dispute.

Myuser: Best Chargeback Prevention System

A chargeback is a serious issue. A buyer wants to charge back the money after placing an order and submits a refund. A huge portion  of consumers admit to issuing a chargeback because the product was shipped late or not at all. Any online shopper claims that their transactions were forged or created without their knowledge or consent. This chargeback may have a negative impact on the store's ranking, raising the legitimate concern in payment gateways and, in extreme cases, causing the store to shut down.

Myuser incorporates chargeback prevention to significantly reduce your dispute rate, ensuring that your store remains active and that you are not added to the Match List. Let us disclose the dangers of being placed on the Match List. Once a merchant is added to the Match List, he or she is prohibited from processing any amount of funds for the next five years! That's a long process! You literally can't make any money for the next five years, and you get banned from transacting funds online.  Myuser, on the other hand, assists in resolving this issue through chargeback preventive measures.

In order to "handle" the risk, the best payment service providers would argue about consequences and simply freeze your funds. Rather than holding your high-risk merchant account, Myuser “controls" the threat by facilitating you with proper calculation. Most payment processors loathe rapidly expanding businesses, and their financial services are not designed to benefit businesses. Myuser, on the contrary, assists high-growth companies by immediately underwriting the business operations every minute.