In the professional service industry, where the average transaction size is $585, most businesses will encounter 15 chargebacks on an annual basis. The merchant will lose 12 out of 15 of those claims. The costs can be over $10,000 by the time you factor in lost wages, lost productivity, and any legal action.
Statistics show that 81% of all reported chargebacks have no validity. By utilizing Sky’s chargeback protection suite, your business can nearly eliminate the threat of fraudulent chargebacks.
Sky Systemz is the only platform purpose-built to protect businesses from fraudulent chargebacks: The only way to successfully accomplish this goal is to implement procedures & protocols within software throughout the operation, management, and purchase cycle.
Chargebacks occur when a consumer receives a service, pays in full, then contacts their bank or card issuer to claim they are unsatisfied with the product or service; did not approve the purchase; or did not receive the service among other reasons. Seems fair enough.
The problem is that 81% of reported chargebacks have no validity and 66% of the time banks and card issuers will favor the consumer, not the business. This means the business loses the entire sale.
Another problem is the volume of fraudulent chargeback occurrence, an estimated 1% of all transactions. 1% might not seem like a lot, but with 108.6M credit card transactions processed daily in the USA, there’s the potential for over one-million chargebacks per day! So, it’s statistically probable your business will face a fraudulent chargeback. With Sky, our additional chargeback protection features reduce that risk to 0.08%!! Meaning Sky’s chargeback rate is 92% lower than the national average.
Unfortunately, the realized loss for a business owner goes well beyond the chargeback itself, which was the dollar value of the transaction.
You also have
Altogether, a $3,000 chargeback can turn into $9,000 in costs. This is a big problem for businesses that generate large sums of revenue with high cost of goods and low profit margins - like moving companies, HVAC sales and service, or diesel mechanics to name a few.
The final piece of this puzzle is increased oversight from both your payment processor and financial institution that may start holding funds or delaying deposits as a protective measure.
This often happens when businesses find themselves victim to a string of fraudulent chargebacks. In some cases, these chargebacks coupled with delayed access to funds can put the business out of business.
If you have not lost 1,000s of dollars from a fraudulent chargeback, it is inevitable that you will. Why wait until that happens?
Sky’s Chargeback Protection Bundle Guarantees to Protect Your Business
Some notable features
Instead of relying on file cabinets, clip boards, and staff to remember important processes, let Sky’s software seamlessly collect, store, and automate procedures such as where and when to sign.
In the occurrence of a chargeback, all forms and documents related to a transaction will be easily accessible in the cloud. You can print and keep physical copies, but the utilization of digital documents and cloud storage will eliminate the cases of lost physical documents needed to fight chargebacks.
If 81% of chargebacks are fraudulent then criminals know exactly what shortcomings in your operations or paperwork to identify so they receive a free move, HVAC system, or transmission. The problem is you don’t know who is looking to acquire your services free of charge and therefore must treat everyone the same.
By creating custom disclosures at checkout that require additional signatures, this allows your business to confirm delivery, in full, of your products or services and that the customer was satisfied with the delivery. . The key is to provide statements with signature for all of the most common chargeback claims for two reasons.
These disclosure will deter most fraudsters because you can create multiple disclosures to eliminate all the common loopholes. If they do attempt to submit a chargeback, Sky can easily produce documentation and disclosures that counter the claim so that your business does not fall victim.
These disclosures are embedded into Sky’s operations suite of software and are essential to deliver results.
If you are using contract management, custom disclosures, and possibly web forms or invoices, then each move would consist of many full page documents. It’s very important to keep these documents organized and easily accessible, which Sky’s Customer Management automatically enables.
The creation of “rules” within Sky’s software platform is equally important to protect your business. You may not feel the need to enable every chargeback protection protocol for a $30 transaction, but feel that any transaction over $1,000 is worth taking all protective measures.
You make the rules and the software applies your settings globally to all transactions.
These include requiring signature on all manual payments or disclosures on manual payments that exceed $100 in value.
You can create custom prompts to request a picture of the customer’s ID for transactions over a certain size to eliminate the rare chargeback claim that the person charged was not the purchaser of the service.
All of this data lives inside Sky’s Customer Management platform. All of your documents are stored in the customer profile inside the cloud. No more clipboards, no more filing cabinets… just EZ access to your data in the cloud.