Outsourcing A Solution
Statistics show only 1% of online businesses stay in business past two years. The prices alone to run a business can put a merchant into serious financial risk. One price in particular which merchants have been adding to their already gr
owing fees over the years is friendly fraud chargebacks. Up to 30% of online fraud is friendly fraud and written off as the cost of doing business. A recent study from an anonymous merchant reviewed that over the four years of doing online business, with tens of thousands of transactions, the company had less than ten chargebacks that were results of actual fraud, the rest being friendly fraud. Specialized services, known as representment, are giving additional help to merchants for investigating and recovering losses from friendly fraud chargebacks. What draws back a merchant to adding additional service is the prices, however, study shows that to manage chargebacks in-house could cost a company up to $100,000 per employee.
In 2003, Industry Insiders calculated that online merchants hiring representment can win up to 42 percent of chargeback complaints and that percentage has only grown progressively since. By Homestead Technologies Inc., a web service, working with representment they were able to recover estimated $500,000 in fraud. According to Visa, about 0.5% of all online transactions are disputed, compared to 0.1% for face-to-face transactions. It takes time and money for merchants to fight chargebacks and many are afraid to add additional costs by adding a representment. However, merchants who do use representment as a source of fighting chargebacks say it is worth the investment and overall are actually saving money. It will cost a company in fees alone to fight chargebacks in-house around $100.
Online merchants see Friendly Frauds as a serious threat to their growing and/ or established business. Global Risk Technologies™ is a service specializing in providing merchants with two key elements, prevention and recovery. eResponseService in Global Risk Technologies™ is an offer which provides on demand services to successfully resolve in favor of the merchant. What makes the company a unique service is how they keep the merchant included with information about pending chargebacks. For many merchants, chargeback data may lead to confusion and when one is trying to run a business, the last thing a merchant wants to teach themselves is the language of chargeback data. Luckily, with Global Risk Technologies™ monthly reviews about collected data and information is returned to the merchant where they can learn the companies chargebacks causes and future prevention.
Along with responding to merchant’s chargebacks, Global Risk Technologies™ also provides a third party solution to keep a merchants monthly chargebacks down, but as well offering an immediate resolution, eConsumerService. This service offers banks to automatically refund the consumers money while the chargeback in on file and is in dispute. Once the chargeback is won by the merchant, the refund is then reversed from the consumer who inaccurately filed a chargeback.
Merchants adding Global Risk Technologies™ to fight friendly fraud is a logical manner which shows monetary improvement for every business included. It is no secret that merchants invest into a business with the knowledge of expecting the investment to only have positive outcomes. Global Risk Technologies™ is exactly what is expected of an investment. With their exceptionally monthly charges, merchants will quickly see a vast improvement of their sales. Global Risk Technologies™ makes merchants not so fearful of friendly fraud chargebacks ruining their business.
