Chargeback Prevention Alerts | Guaranteed Prevention Guide 2021








Table of Contents
- What are chargeback prevention alerts?
- What happens if I get too many chargebacks?
- What is a "high-risk" merchant?
- What happens if I am labeled a "high risk merchant?"
- What is the chargeback threshold?
- What happens if I lose my merchant account?
- How can I lower my chargeback ratio?
- How do chargeback prevention alerts work?
- What are the benefits of chargeback prevention alerts?
- Who are the major providers of chargeback prevention alerts?
- Is Verifi or Ethoca better for Chargeback Alerts?
- Why let a chargeback management company handle chargeback alerts for me?
- How do chargeback prevention alerts work?
- What Percentage of chargebacks can be prevented by chargeback prevention alerts?
- What is the Cost of a Prevention Alert?
- What do I need to get started with a chargeback prevention alert network?
- Are chargeback prevention alerts the best way to prevent chargebacks?
When it comes to chargebacks, the fewer there are, the better. Whether they're legitimate or not, too many chargebacks can result in a merchant losing their ability to process credit card payments or ending up on the MATCH list. Sometimes, a chargeback is initiated over an issue a merchant would have been happy to resolve, in the customer's favor, before getting the banks involved.
Fortunately, you can recover this opportunity by utilizing chargeback prevention alerts.
What are chargeback prevention alerts?
What happens if I get too many chargebacks?

What is a "high-risk" merchant?
When a merchant works in a high-risk industry or has too many incidents of fraud or chargebacks, they can be labeled a "high-risk" merchant. High-risk merchants will find themselves having limits placed on their accounts, and they may undergo some sort of monitoring service through the credit card network.
What happens if I am labeled a "high-risk merchant?"
What is the chargeback threshold?
What happens if I lose my merchant account?
How can I lower my chargeback ratio?
How do chargeback prevention alerts work?
What are the benefits of chargeback prevention alerts?
Who are the major providers of chargeback prevention alerts?
Is Verifi or Ethoca better for Chargeback Alerts?
Is there a difference between Verifi and Ethoca chargeback alert fees?
Can I sign up with both Verifi and Ethoca for chargeback alerts?

However, there is significant overlap amongst the banks included in each network, since both alert providers are competing to have the major issuing banks in their network.
Why let a chargeback management company handle chargeback alerts for me?
When you hire a chargeback management company, you have a dedicated team that responds to chargeback prevention alerts within the required time frame.
How do chargeback prevention alerts work?
(Haven’t processed any transactions before)
(Never enrolled in a prevention alert network before)
(Previously enrolled in prevention alerts, but switching providers)
What Percentage of chargebacks can be prevented by chargeback prevention alerts?
- Transaction Count (The more transactions, the better the coverage)
- Customer Bank Location (US customer base has better coverage than overseas)
- Years in Business (Established businesses can have better coverage than new merchants)
Service/Product |
Verifi |
Ethoca |
Physical Goods |
21% |
17% |
Digital Goods |
41% |
30% |
Digital Service |
17% |
33% |
Subscription Industry |
19% |
14% |
What is the Cost of a Prevention Alert?
What do I need to get started with a chargeback prevention alert network?
- Merchant/Business Name
- Business Registered Address
- Merchant Account Descriptor (Name as it appears on customer credit card statement)
- Merchant Account Number (The ID provided by your payment processor)
- Access to your Sales System (To issue refunds and resolve the alerts)
Are chargeback prevention alerts the best way to prevent chargebacks?
Is your business experiencing chargebacks? Whether you’re a low, medium or high-risk for chargebacks, you must understand where they are coming from, what they’re really costing you, and what you can do to stop them. Download the free Chargeback Prevention Guide for simple tips on how to prevent them.
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