Utilizing Disclosures to Reduce Fraudulent Chargebacks
What is a Disclosure

A disclosure, sometimes called a disclosure statement, is a way for a business to make certain information known to the customer at the time of purchase and acknowledged by a signature. Disclosures are typically written in plain language to ensure the customer clearly understands the statement that they are signing. Typically,a disclosure is provided before a financial transaction to explain the terms and conditions involved in accepting the transaction; once signed, both parties enter into a contract with each other.

Purpose of a Disclosure

The general purpose of a disclosure is to make clear the terminology, terms, conditions, exclusions, and inclusions of a contract.. This statement conveys the intentions, obligations, and duties of the organization to the customer. This also gives the customer the opportunity to ask questions regarding the product or services they will be receiving. After agreeing to the terms of the disclosure, the customer will sign the disclosure to accept the terms and conditions and or to acknowledge that they are satisfied with the service received.

Use Cases
  • Fraudulent Charges: this is where a cardholder claims that they did not authorize a purchase. Ways a business can fight this is by uploading a photo of the purchasers’ drivers license, including a general authorization disclosure, and or signature. With this proof a business can dispute the fraudulent claim.
  • Service Unacceptable: this is where a cardholder claims the product or service received was defective, damaged, and or not as described. A disclosure stating that customer satisfaction was met at the time of purchase with a signature can help to fight this type of claim.
Fighting Chargebacks with Disclosures

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 and or services, and that the customer was satisfied with the delivery. The key is to provide statements with signatures for all of the most common chargeback claims.

These disclosure will deter most fraudulent claims by eliminating all the common loopholes. If a customer does attempt to submit a chargeback, Sky can easily produce documentation and disclosures that counter this 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.

Next Steps

If you are a small to medium-sized business looking for financial and banking services for your business, look no further than SKY Systemz. Our Operationz and Business Management Suites of software are versatile and can handle all of your digital payments and business operating needs. Not only do we provide the most versatile software available on the market, but we also offer “Pass the Fee" built right into your dashboard. Passing the Fee allows your customers to pay credit card processing fees, instead of cutting into your bottom line. This is optional but almost half of Sky merchants utilize this feature. If Pass the Fee is not for you, we still offer the lowest rates in the industry. If you process at least $20k a month, we are willing to negotiate customer pricing.

At Sky, we’d like to offer a 30-day challenge! Sign up for free with no contracts or commitments. If after 30 days you aren’t satisfied with our software, services or rates, no hard feelings! You can simply let us know you’d like to discontinue services, but we don’t think you’ll want to switch back! To get started, please fill out the request form below and a member of our team will contact you within the next 24 hours!

Frequently Asked Questions

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Sky offers next day funding, so Sky Paymentz customers will receive any payments made on Monday by 9:00 PM ET on Tuesday. Any payments during the weekend will be received on Tuesday. More information can be found in our help center - https://support.skysystemz.com/hc/en-us/articles/4408459370644-When-will-I-typically-receive-deposits

Yes. After completing the 5 minute registration process you can immediately start processing payments by using the Sky Systemz mobile application ( App Store) ( Google Play) or by logging into SkySystemz.com you can take a manual payment. You will then receive an email and phone call from your dedicated account manager to assist with any hardware purchases and the setup of your Sky account.

Sky asks basic business and personal questions during registration, such as name, address, EIN, and banking information. It takes approximately 5 minutes to complete our registration and begin processing payments. However, Sky uses next generation underwriting and verification technology to identify you as the business owner and to verify your business. If you do not answer questions accurately, we may ask additional questions or require documentation such as processing statements, drivers license, or business licenses for verification purposes.

Sky first attempts to verify your identity and ownership with the last 4 of your social security number. If we are unable to verify, we will require the full social security number to satisfy federal and state guidelines surrounding Knowing Your Customer (KYC) and Anti Money Laundering (AML).

Sky does sell equipment and offers special discount incentives for merchants that provide three recent processing statements. Sky also offers a $50 credit for every $5,000 processed in the first billing cycle for hardware purchases made during the first billing cycle. You can make purchases from the Sky online store

Sky’s service is nationwide but our physical presence to offer personalized customer service and POS setups is in three states, Kentucky, Tennessee, and Indiana and the metropolitan areas of St. Louis and Orlando.

Yes, Sky can assist with the transition and as a subscriber to Cloud Servicez we can rebuild your website if you prefer. This will keep all of your services, both in store and online in one place.

Yes. Sky Cloud Servicez offers two plans with Pro and Pro+ to build, host, and maintain custom websites. The typical buildout time is 1-2 weeks.

Sky’s support team and your dedicated account manager are available by text, email, or phone. We are always here when you need us.

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