A fraud protection solution focuses on preventing fraud from happening in the first place and increasing the business’s approval rate so they are spared from the costs of fraud and related chargebacks.
There are a number of “fraud protection” companies that have the best intentions but can create bigger problems for their clients.
Some of these companies have automatic solutions that rely on strict fraud rules that may, in fact, reduce the number of chargebacks a business experiences. On the other hand, those rules often decline valid orders, reduce a business’s approval rate, and result in increased false declines. When it comes to costs to a business, false declines can be more costly than chargebacks or even fraud.
Then there are companies that call themselves “fraud protection” solutions but are really chargeback management companies. They try to prevent chargebacks, but they don’t tackle the issue of preventing fraud itself. Instead, they generally work on behalf of a business to dispute a chargeback after it’s already happened. Although the business typically won’t have to deal with the cost of the chargeback fees, the business will still have to bear the cost of the fraud, which typically includes lost product, lost shipping costs, etc.
In contrast, ClearSale is a true fraud prevention and end-to-end chargeback management solution. We focus on preventing fraud from happening in the first place and increasing the business’s approval rate so they are spared from the costs of fraud and related chargebacks.
Related Topics
False Declines & Approval Rates
Related Sources
Digital Wallet Chargeback Policies Have Changed: What You Need to Know
How Merchants Can Reduce Chargeback Risks for Virtual Items
Advance Strategies to Eliminate Ecommerce Chargebacks
5 Ways to Protect Your Business From PayPal Chargeback Fraud
Why Low Marginal Costs Don’t Eliminate the Risk From Chargebacks
Is Your Chargeback Rate Accurate?
The Ultimate Guide to Debit Card Chargebacks
How Retailers Can Prevent & Fight Debit Card Chargebacks
Chargeback Fees: What Do Chargebacks Cost?