Seasonal Shopping 2 Part Special - Part 2 - The Double Edged Sword of Holiday Sales

The sales numbers during the holiday season may keep your mind at ease, but keeping a watchful eye on your chargebacks should be keeping you just as worried. The sheer amount of sales within the holiday season could bring about harsh consequences if your chargebacks are not kept in check.

With Record Sales Come Record Breaking Chargebacks
MasterCard for one, has implemented a new dispute administration fee that is to be passed to merchants who fail to adequately dispute the legitimacy of a chargeback. This fee, ranging from €15 for chargebacks accepted without rebuttal and €30 if a non-compliant response is filed, are more than steep and could put a real damper on your profits, not to mention your holiday spirit!
These chargebacks usually stem from a case of buyer’s remorse, where a customer feels pressured into buying and then finds the same item at a lower price elsewhere and change their mind on the initial purchase. Cases of customer dissatisfaction in merchant performance, such as late delivery, also turn out to be reasons clients file a chargeback. Companies, who see these charges as a cost of doing business, should be made aware of the additional fees and consequences that can arise, besides the usual lost product and revenue.


Using an Adapted Fraud Management System
Here at HiPay we stress the importance of an anti-fraud tool used to combat recurring fraudsters from taking advantage of sites with little to no monitoring system or preventative tools. Our Enterprise solution provides the ideal solution for any e-commerce merchant looking to protect themselves from fraud.
The Fraud Protection Service (FPS) module, a tool created and personalized for each business’ needs, detects cases of fraud that are more likely to occur in certain sectors. The possibility to block fake accounts before making purchases and claiming chargebacks, or adding stronger security requirements for companies selling high priced luxury items are all possibilities and criteria tailor made to increase the flow of transactions while decreasing the rate of fraud simultaneously.
As mentioned in a prior blog post, L’Exception, an online e merchant, chose HiPay’s solution and crafted their personalized FPS module to manage their online fraud issue. Since the implementation of the platform in 2014 the rate of fraudulent transactions has been divided by three. HiPay’s dedicated team of fraud analysts have been working with L’Exception ever since on a daily basis to ensure the rate of fraud continues to be only a minor factor.

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