There are many reasons a fair number of credit card transactions turn into chargebacks. And sometimes, there are valid reasons for them. For example, credit card issuers regularly contact their card holders to confirm transactions that have been processed are legitimate. These calls are typically done within hours of authorization and they regularly identify truey fraudulent / unauthorized transactions. When this occurs, the credit card issuer cancels the card and starts their recovery process. Unfortunately, the merchant doesn't find out until 3-6 week later when the chargeback appears on their processing statement.
And then there is what the industry has coined "friendly fraud." Customers that knowingly purchase a product and later dispute the authenticity of the transaction. Phrases such as "I don't remember buying that!" and "That wasn't me!" lead to disputed transactions and eventually chargebacks.
The solution is CB Defense and how it works is simple: You provide us with a list of your descriptors and we in turn have the issuers add them to their "watch list." When one of your customers calls the issuer to dispute a transaction, the issuer alerts us and then we alert the affected merchants – all automatically, in real time, no matter how small the order. As long as you stop and refund the relevant orders and report the outcomes back to us in a timely manner, the chargeback is stopped dead in its tracks and never appears on your processing statement. We can even do the tedious membership refund & cancellation for you, allowing you to spend more time on your business and less time worrying about your processing health.