Recover  Revenue  withChargeback  Responses

Protect  Accounts  withChargeback  Alerts

Stay  Informed  withChargeback  Monitoring

We recover lost revenue and protect your merchant account from chargeback fraud, and we’re really good at it.

Your customers rock, but they’re human.

Contents

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Chargebacks, The Other Side card of Payments.

Card Payments Are Complicated

Chargeback Flow & What We Do

Integration Work

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Why Chargeback.com

Product Overview: Responses & Alerts

Pricing and ROI for Chargeback Responses

Controlling Your Chargeback Ratio and Protecting Your Merchant Account

Reporting Tools That Drive Business Decisions12

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Getting Started12

You’re a merchant, you rely on cards as your main payment method. You’re also a cardholder and know your bank has your back. If someone uses your card without your approval you can easily reverse it.

*Internal analysis using Nielsen Report and Lexis Nexis/Javelin Study

Chargebacks, The Other Side of Card Payments

True Fraud begins either with the theft of the physical card or with the compromise of data associated with the card and results in unauthorized purchases that get charged back to the merchant at the cardholder’s request.

Chargeback Fraud begins with a legitimate transaction from the cardholder but is ultimately charged back to the merchant for a number of reasons ranging from malicious pre-meditated planning and behavior to simple confusion or a misunderstanding.

So, what happens when a customer commits fraud by asking their bank to reverse a purchase you delivered as agreed?

Unfortunately, its entirely up to you to prove that the transaction was legitimate and delivered as agreed. This is a common occurrence called chargeback fraud and it cost merchants $11.2B* in lost revenue in 2015.

Most merchants block suspicious transactions and perform manual reviews but this won’t stop chargeback fraud. Only 15-30%* of chargebacks are attributable to true fraud. Most chargebacks are chargeback fraud and can be recovered by Chrageback.com.

30%

70%

True Fraud

Chargeback Fraud

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Card Payments are ComplicatedWith cash transactions the customer simply hands funds directly to the merchant. Card Payments are more complicated. Ultimately, the customer’s bank transfers funds to the merchant’s bank but how that gets authorized and scheduled involves many 3rd parties.

= Purchase Request

= Approval or Decline

= Money Flow

Customer Merchant eComm or POS

Payment Gateway

Merchant Account Processor

Network Issuing Bank Processor

The payment request is sent through multiple companies that represent the merchant or the customer.

Merchant Bank Account(Acquiring Bank)

Customers Bank(Issuing Bank)

Federal Bank(s)(ACH)

If approved, the funds are moved to the merchant’s bank account via ACH transfer.

Data Flow

Funds Flow

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Data Flow

Funds Flow

Chargeback Flow & What We DoChargebacks are nearly the exact opposite of the purchase. One very important difference should be noted: Chargebacks initiate the flow of funds from the Merchant Bank Account back to the Issuing Bank immediately. No chargeback approval takes place.

Customer Merchant(Typically finds out via Monthly

Statement)

Payment Gateway

Merchant Bank Processor

Card Network

Issuing Bank Processor

Merchant Bank(Acquiring Bank)

Customers Bank(Issuing Bank)

Federal Bank(s)(ACH)

Chargeback Monitoring

Chargeback Alerts

Chargeback Responses

Chargebacks get interceptedbefore they reach the Network and incur fees or change ratio.

Chargebacks get reported to the merchant to eliminate surprises and allow for immediate action.

Compelling evidence is sent to the Merchant Processor so they can dispute the chargeback and recoverfunds from the Issuing Bank.

= Chargeback

= Funds Flow

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Can it be just 5% better? Of course it can. Whatever topic, whatever thing, it can always be better.

Chargeback Monitoring and Notifications, FOR FREE, FOREVER.

Why Chargeback.com

• With integrations to every major ecommerce platform, payment gateway and processor we have the unique ability to do something good, and we’re happy to do it.

• Anyone can sign-up online for a free chargeback monitoring account in seconds.

• Once you’re set-up you’ll be the first to know when a new chargeback has been initiated by a customer.

Chargeback.com was founded in 2009 because chargebacks suck. We knew we could build tools and train people to disrupt the pains associated with chargebacks. We get goose bumps every time we recover lost revenue and prevent merchant accounts from being shut off from chargeback fraud.

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We have two core products available in a fully managed service model or as a software as a service (SaaS) model. These two products are the industry best because they consistently outperform our competitors and are continually improved by our team.

Chargeback Responses Chargeback Alerts

Recover Revenue and Intercept Fraud

We continually meet and beat client expectations when recovering revenue from chargeback fraud.

Transaction data from ecommerce platforms, merchant gateways and processors is used to create comprehensive chargeback responses. Key data points such as device fingerprinting, screenshots, AVS checks, network responses are used to dispute chargebacks.

Last year we processed over 130K comprehensive and timely chargeback responses representing $15MM in lost revenue.

A suspended or closed merchant account can kill a business overnight. Alerts give you the opportunity to prevent fees, immediately blacklist a customer and take action to remedy a situation before the chargeback is received and recorded against your merchant account.

Our Alert program has the broadest list of participating banks, processors and partners in the industry. This allows us to intercept more chargebacks than any other company.

Last year we immediately acted on 16,500 chargeback alerts for our clients.

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That’s money back in your account!

Chargeback Responses put lost revenue back in your account. You decide when you need a response; discounts are available.

No set-up fee - No-commitment - No minimums

*Varies by merchant. Average recovery rates for Large Merchants with 100MM+ Annual Revenue is over 90%

Simple Pricing, Worth Every Penny

Chargebacks Fee per Annual Recovered Revenue @ [Average Transaction Amount] AveragePer Month Response $50 $100 $250 $500 $1,000 ROI

1 $15 $540 $1,080 $2,700 $5,400 $10,800 2280%

10 $10 $5,400 $10,800 $27,000 $54,000 $108,000 3420%

100 $9 $54,000 $108,000 $270,000 $540,000 $1,080,000 3800%

500 $7 $270,000 $540,000 $1,350,000 $2,700,000 $5,400,000 4886%

= = ROIC * T * 90%*

C * F

Annual Recovered Revenue

Total Fees to Recover

C = Annual Chargebacks, T = Average Transaction Amount, F = Fee per Response, ROI = Return on Investment

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Divide  total  chargebacks  by  the  total  transactions  in  a  given  period.  

= Chargeback Ratio

Chargebacks

Transactions

If  your  ratio  is  near  or  above  1%  in  any  period  you  need  Chargeback  Alerts  now.

Intercepting chargebacks before they hit your merchant account can be instrumental in keeping operations running and eliminating fees. To determine the value of Chargeback Alerts for your business you need to know your chargeback ratio.

Take Control of Your Chargeback Ratio

Typically, the period used to calculate chargeback ratios is one month.

• MasterCard uses the current period’s chargebacks and the previous period’s transactions while Visa uses the same period for both.

• American Express and Discover Card don’t publish a ratio but will take action if chargebacks become “disproportionate”.

• It’s safe to assume anything north of 1% would be considered disproportionate.

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The efficiency and speed to complete a chargeback response is dependent on our data connectivity. The quality of the chargeback response and win rate is not.

Integration Work

Minimum (Access Only)Credentials (User Name/Password)for manual retrieval of data.

eCommerce Platform(s)For gathering compelling evidence such as customer info, shipping info, product images, descriptions, specifications and other details.

Payment Gateway(s)For gathering Meta data captured during checkout process such as network auth & approval, AVS, CVV, IP address and other transactional details.

Better (Data Automation)Data File via FTP, email or other means at least once per day.

Best (Real-Time Data)API Integration with Real-Time data transfer.

Merchant Account Processor(s)For receiving and processing responses. The Merchant Processor relies on us to gather compelling evidence, draft and finalize the chargeback response for them.

Connectivity to each of the three platforms below is necessary.

To enable Alerts we only need Merchant Identification Numbers (MIDs) and Merchant Descriptors (the messaging that appears on cardholder statements). These are available from the Merchant Processor.

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Reporting Tools That Drive Business DecisionsOnline Reporting Tool Daily/Monthly Emails Quarterly Review

After signing up we will begin to monitor your merchant account for

chargebacks. If a chargeback occurs you will be notified immediately via

email. If you would like us to respond for you and attempt to recover your

revenue contact us immediately.

Sign-up Online or Contact Us

Getting Started is Simple

If you would like to enable Chargeback Alerts so you can interceptchargebacks before they impact your ratio we will need your Merchant

Identification Numbers (MIDs) and Merchant Descriptors (the messaging that

appears on cardholder statements). These are available from the Merchant

Processor.

1. Got to http://chargeback.com/signup

2. Complete the registration form

3. Connect your ecommerce platform, merchant gateway and processor.

CONTACT

(888) 808-8447

sales@chargeback.com

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We’ve got your back.