Why Does Your Company Need Level 3 Processing and Defense Against Chargebacks?
Posted by Dane Bronson on December 16th, 2020
How Does a Proper Chargeback Defense Looks Like?
There are many benefits that a reliable payment processor can provide to your company. And 2 of the most important ones are level 3 processing and chargeback defense. Many companies encounter big problems caused by a high number of chargebacks. And the problems will not stop until they find a method to increase their defense. But what is the best method to do that? Well, you can find a processor and make sure that it provides the methods mentioned below.
• Instant notifications. The most important part of any dispute that may arise from a chargeback or fraud attempt is to be notified instantly. If the processor does not have this ability, then you should look for another one. Keep in mind that the slower you are notified, the less time you have to manage the disputes. And you may lose a larger percentage of them.
• Online management. The second feature that a proper chargeback defense needs to have is online management. The payment processing company must prepare an online place where you can provide all the documents needed for the disputes. Using faxes and calls is too slow, and if you encounter a period with a larger number of chargebacks, then your team may not be able to manage them all.
• Fraud protection. The payment processing company must also be able to stop the chargebacks in their tracks until the disputes are finalized. This will avoid the possibility of fraud. You will only need to deal with chargebacks that may have or not good reasons behind them. This feature alone will be able to save your company a lot of money. But there are other protection methods as well.
• Cardholder authentication tools. These types of tools will make it much harder for anyone to use the credit cards of other persons. And this means that there will be much fewer chargebacks for this type of reason. Your online business will not be a place where stolen cards can be used. And this will massively reduce the number of chargebacks that you will have to deal with.
• Chargeback assurance. The last feature that will complete the defense of your company is assurance. There are specialized companies that will provide you assurance for every transaction that is approved by them. So, even if you lose a chargeback for that transaction, you will not lose any money at all.
Benefits That You Can Expect from a Proper Chargeback Defense!
As you can see, many features can increase the chargeback defense of your company. But is it worth it? Are there enough benefits for doing this? Well, there are many benefits that your company will get from increasing its defense. And it will also benefit from level 3 processing transactions. But 3 of the benefits are much more important than the rest. They should be enough to convince you how important it is to find a reliable processor that provides this type of feature.
• Eliminate the losses caused by chargebacks. Chargebacks can have many causes. They may occur because a card was stolen and used without the agreement of the cardholder. Or, they may be a fraud attempt. These 2 cases are the most common ones. And a proper defense will eliminate all of them for you. You will no longer have to spend time, effort, and money to deal with them. So, the losses that they cause will also be eliminated.
• Increase the reputation of your company. A strong defense can also be used for marketing purposes. The fact that your payment processing methods, such as level 3 processing transactions, are secured will encourage many of your potential clients to choose your company instead of your competitors. A good reputation can bring massive benefits to your company in the long run. So, you should not lose this opportunity to brand your company.
• Increase the revenue and profits of your company. As a result of the benefits mentioned above, the costs of your company will be reduced. While more and more potential clients will be convinced to buy your products and services. So, the revenue and the profits of your company will increase. And you can use them to increase the growth rate of your company even more.
How Can Level 3 Processing Help Your Company!
Credit card processing can be separated on multiple levels. And level 3 processing can be used for corporate cards. And the main benefit of doing this is the reduced fee that your company will pay. So, if your clients are other companies or institutions, then you can make use of this method to reduce the costs of your company. But there is a slight problem with this method. If you do not have specialized software that can automate the process for you, then you will have to do it manually. But doing that is very complicated and requires a lot of time.
The best alternative that you can use to make use of this opportunity is to find a reliable payment processing company that provides a feature that will automate the process. Do not ignore this opportunity because the amount of money that you can save is significant. The fees that you will have to pay are reduced up to 50%. For example, if the total of the transactions is 0.000, then the fees for the normal processing method will be .950. But the fee for the level 3 processing transaction is only .900. This means that your company will be able to save more than .000. You will be able to hire one more employee with the money saved. And doing that will increase the revenue and the profits of your company even more.
But if you want to benefit from both a strong chargeback defense and processing methods for corporations, then you need to find a reliable processor. And to do that, you will need to do some research on the internet. And try your best to find an alternative that can cover all the needs of your company. But you should also test the services of the company before you start a long-term collaboration.