Chargebacks can devastate your business, draining resources and damaging relationships with payment processors and banks. But with tools like Ethoca chargeback alerts, you can intercept and prevent these disruptions before they hit. Ethoca’s advanced technology scans transaction data to spot potential chargebacks early, giving you the chance to act fast.

In this article, we’ll show how Disputifier combines Ethoca and Verifi alerts, along with other powerful tools, to prevent up to 99% of chargebacks. Discover how to protect your revenue and eliminate the stress of disputes—starting with a free trial today!

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What are Ethoca Alerts?

Before we get into how Ethoca finds chargebacks, let’s offer a bit of background information on what exactly this solution is. 

This network bridges communication gaps between merchants, card issuers, and other financial institutions to mitigate fraud and reduce the incidence of chargebacks.

It has become a key player in giving businesses the information they need to make informed decisions about sketchy transactions that could result in a chargeback, like as a result of fraud. 

This allows you, in turn, to cancel the transaction, refund the money, and avoid the headache associated with these disputes. But how does it work?

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How Ethoca Finds Chargebacks

Ethoca's global network consists of thousands of merchants and many of the world’s leading card issuers. This is the foundation of Ethoca's ability to provide early warnings to merchants about potential chargebacks. 

Ethoca is among the first to know when a cardholder disputes a transaction or fraudulent activity is detected by an issuer thanks to its secure connections with these institutions. The process is streamlined to ensure that this data is shared in real-time. 

Then, Ethoca generates an alert for the merchant when it receives information regarding a disputed transaction which contains details such as the credit card number (masked for security), transaction date and time, amount, and merchant descriptor. 

These alerts are communicated via Ethoca’s secure portal or through a direct API integration with your system. From there, you’re able to take immediate action to stop the delivery of goods and issue refunds where appropriate. 

Ideally, your response would occur within 24 hours to prevent the dispute from evolving into a chargeback. Your actions can be logged in the Ethoca system to confirm you’ve taken the necessary steps to solve the dispute - which you’ll be able to use to your advantage later on should things escalate.

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Benefits for Businesses

Now, why should you make Ethoca alerts a part of your dispute prevention and resolution strategy? Investing in this technology will offer you peace of mind while protecting your profits and your reputation - it’s really that simple.

Chargebacks can be a burden for your business both financially and operationally. Ethoca chargebacks allow merchants to act quickly - usually within hours - to resolve these disputes amicably by providing early warnings about disputed transactions. 

This leads to dramatically lower chargeback rates, preserving your income and reducing the administrative costs associated with processing chargebacks.

You’re able to immediately halt the shipment of goods or provision of services upon receiving an alert, thus preventing potential fraud. Along with the time and resources typically spent disputing chargebacks and recovering losses, thereby enhancing overall operational efficiency.

The direct costs associated with managing chargebacks include administrative fees, shipping costs for returns, lost goods, and the chargeback fee itself. That’s not to mention the costs of a tarnished reputation with payment processors. In this sense, Ethoca chargeback alerts save you money in the long run by eliminating these costs.

Additionally, the reduction in chargeback incidence can also lower penalty fees and processing charges imposed by credit card companies and banks, which often increase rates based on the frequency of chargebacks.

You’ll also find that using Ethoca chargeback alerts improves your customer satisfaction by facilitating a faster dispute resolution process, allowing you to address customer concerns before they escalate. 

It’s clear that learning how to prevent chargebacks is worth the time and resources, and leveraging Ethoca chargeback alerts is a great start. But, it’s just one piece of the puzzle - so let’s show you why your search for the best chargeback companies ends here at Disputifier!

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Protecting Your Profits With Ethoca Chargeback Alerts

Disputifier is the leading automated chargeback prevention solution for e-commerce companies and other online businesses. Our service prevents up to 99% of chargebacks in the first place - and in the rare occurrence that one slips through the cracks, we automatically fight the dispute on your behalf to boost your win rate as high as 70%. Here’s how it works… 

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Preventing Chargebacks in the First Place

Disputifer takes a multi-pronged approach to preventing chargebacks before they occur. This includes Ethoca alerts, but also Verifi alerts to ensure you have the most well-rounded fraud and dispute detection solution at your fingertips.

Our system includes sophisticated fraud scanning tools that scrutinize hundreds of data points on each transaction. This not only helps in identifying genuine fraud but also minimizes false positives, ensuring that legitimate transactions proceed smoothly. 

For businesses involved in dropshipping or those that frequently face issues with order fulfillment, our 'Order Not Received' prevention tool automatically tracks shipments and updates customers proactively, thereby reducing disputes related to undelivered goods. You can also use these as part of your representment strategy should a dispute escalate. 

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Fighting Chargebacks For You

You’ll find that your chargeback rates plummet when you have Disputifier on your side. But if you do end up facing the rare dispute, you won’t have to lift a finger. We take action to fight it on your behalf.

From drafting customized chargeback emails to customer tailored to the specifics of each case to submitting these responses on your behalf, we manage the entire ordeal. 

Our team of dispute experts analyzes past outcomes to continuously refine strategies, ensuring that your win rates improve over time. We even use A/B testing to optimize your response strategy over the course of time.

But just how often do merchants win chargeback disputes? The average win rate falls somewhere between 10-20% for high-risk businesses and 20-30% for low-risk businesses. With Disputifier, though, these rates can exceed 60-70%!

The best part is you don’t pay unless you win - so you’ve got nothing to lose! 

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How you can get started today

Take the first step towards comprehensive chargeback prevention with Disputifier, powered by Ethoca and Verifi alerts along with other dispute management solutions. 

You can finally stop stressing about the impact these issues have on your business and focus on areas of growth rather than plugging up leaks associated with fraud or chargebacks. A free trial is just a few clicks away!

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More Tips on Managing Chargebacks

Before we wrap up this guide on Ethoca chargebacks, here are a few more tips on setting up your dispute management strategy: 

• Order Confirmation and Updates: Send immediate order confirmations and regular updates regarding order status, including tracking information. This sets clear expectations and reduces customer confusion and dissatisfaction, which can lead to chargebacks.
• Customer Service Accessibility: Ensure that your customer service is easy to reach, responsive, and helpful. Providing multiple channels for communication (such as phone, email, and live chat) can help resolve issues before they escalate to a chargeback.
• Avoid Misrepresentation: Ensure that all product descriptions are clear, accurate, and detailed. Include high-quality images and specify dimensions, colors, and any other relevant details. This reduces the likelihood of customers feeling that they were misled about the product they purchased.
• Encourage Returns Instead of Chargebacks: A clear, lenient return policy can encourage customers to return products rather than initiating a chargeback. Make sure your return policy is easy to find and understand, and consider offering free returns to reduce the barrier for dissatisfied customers.
• Use AVS and CVV Checks: Implement AVS and require the card verification value (CVV) during transactions to enhance security and verify the cardholder's identity.

We have more tips on how to win a chargeback in our blog along with resources on chargeback insurance or what happens if you lose a chargeback. But at this point, it’s time to put this problem in the past for good by harnessing the power of Disputifier!

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Wrapping Up Our Guide to Ethoca Chargebacks

That concludes our guide to how Ethoca finds chargebacks. In summary, Ethoca alerts are an integral part of preempting and resolving disputes before they escalate into costly chargebacks. 

That being said, Disputifier combines Ethoca chargeback alerts with Verifi alerts and other AI-powered fraud detection solutions, creating the most well-rounded dispute management process devised to date.

We’re here to empower you to act swiftly when disputes occur, improving customer satisfaction and reducing financial losses. So, what are you waiting for? Start your free trial with Disputifier today and experience a new standard in dispute resolution.