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March 25, 2019 • Issue 19:03:02

Major changes underway

in chargeback land

The challenge for acquirers, ISOs and merchant level
salespeople will be in getting their clients up to speed on
the changes and taking steps to help them avoid the pain
of chargebacks. "Identifying chargeback problems and
proactively educating merchants [on how to prevent and
manage chargebacks] can be a differentiator, and everyone
in the ecosystem will thrive," said Suresh Dakshina,
president of Chargeback Gurus.

Chris Marchand, vice president for business development at
the chargeback management firm Verifi, added, "Reducing
chargebacks keeps a merchant's risk profile in line. A
healthy merchant risk profile is important."

Marchand noted, for example, that it can take up to three
months from the date of purchase for a chargeback claim to
be filed. Given the rate of failures among small businesses,
By Patti Murphy it's entirely possible a small business might fail before a
chargeback is ever filed, leaving the ISO and/or acquirer on
ew and pending changes to Mastercard and the hook for the chargeback claim.
Visa chargeback rules are ushering in a new
era and will have far-reaching implications for Managing chargebacks is also good for a merchant's
N merchants, particularly those selling in card- business. Merchants who track post-chargeback activity
not-present environments, and merchant services provid- report that about six in 10 consumers reduce patronage
ers. Card issuers, meanwhile, should come out on the win- following a chargeback, according to Javelin Strategy &
ning side of the chargeback equation. Research.
"Where issuers have been feeling the most pain is in the
increasing cost of processing chargebacks and overall
increases in chargebacks," said Monica Eaton-Cardone, co- Contributed articles inside by:
founder and chief operating officer at Chargebacks911. The
new and pending changes address those pain points, she
said. Barry Davis ..............................................................................................20
Steve Norell ............................................................................................32
Eaton-Cardone likened the magnitude of changes in Jeff Fortney .............................................................................................34
chargeback rules to the migration to EMV technology, Neetu Shaw ............................................................................................38
except merchants won't have the luxury putting off
compliance. "With all the new changes we really need Frank Dennauoi .....................................................................................40
to make sure that, unlike EMV, this is at 100 percent
[compliance] as soon as possible," she said. TOC on page 3

Continued on page 30