Chargebacks are always a nightmare to most businesses, but chargeback management software helps merchants decrease disputes, recover lost revenue, and even enhance the customer experience.
The best chargeback management software tools have all the advanced features like fraud detection, automated responses, and real-time analytics, enabling businesses to handle and prevent chargebacks faster.
Stats show that businesses using specialized chargeback management software can recover up to 60% of lost revenue from disputes, in which the benefit to any merchant is substantial for the bottom line.
These tools are essential too, since chargeback rates have been increasing with an estimated 9% increase over the past year in chargeback incidents.
Through this blog, you get a complete guide regarding the selection of the right solution based on the scale of business as well as the complexity of payment systems.
Whether you are a small business or a large enterprise, there is a tool suitable for your needs. In addition to protecting against fraud, these systems provide key insights through detailed analytics and reporting, which may guide future decision-making.
Sources and Causes of Chargerbacks
Sources of chargebacks
Chargebacks are usually a result of fraud, and unauthorized purchases by criminals who are using stolen card details feature prominently among the culprits.
Data breaches and poor security measures expose cards to fraud. Customer dissatisfaction also has a significant role in chargebacks.
In cases of disappointing services or products from clients who have been promised higher, delayed, or worse delivered poor quality, the disgruntled customer initiates the process of chargeback.
Sometimes, even recognized errors such as unidentified charged credits on statements result in disagreement, especially where concerned parties are subscription services or accounts receiving recurring payments.
Lastly, friendly fraud (when customers intentionally misuse the chargeback system to avoid payment) is another source, though this can be harder to detect and prevent.
Causes of Chargebacks
The causes of chargebacks can be as varied as authentic mistakes to intentional actions. Fraud is a major cause, through which customers dispute transactions they have not authorized, usually after some form of compromise of payment information.
Product dissatisfaction remains another key cause, where terrible customer experiences or unmet expectations trigger the chargeback route.
Billing errors are also common, especially when the charge is recurring or the customer doesn’t recognize the legitimate transaction on their bank statements.
Last but not least, friendly fraud is a major issue, where customers falsely claim they did not authorize the transaction when they received the product​
Types of Chargeback Management Tools
When you select the proper chargeback management solution, managing chargebacks on your e-commerce site becomes much more feasible.
Chargeback management solutions can be of different types, each providing a different level of complexity, cost, and features.
One type is SaaS or Software as a Service. With a SaaS solution, you subscribe to the software, and you are responsible for managing, monitoring, and updating the system.
This offers high flexibility and customization, and it’s generally more cost-effective compared to fully managed services.
However, it does require more of your time and effort to maintain, and external support is usually limited, so performance might not always be as consistent as you’d like.
On the other hand, fully managed solutions take the entire chargeback management process off your plate. These services take care of everything from monitoring to dispute resolution, leaving you with less to manage.
The benefit is that you get the experience of professionals, saving your team time and effort. However, these services are much more expensive than SaaS tools, and there is less customization.
In addition, fraud cases might be missed because a third-party service is taking care of everything.
A hybrid solution is a combination of both SaaS and fully managed services. This allows you to take charge of simpler tasks such as chargeback identification but outsource more complex tasks such as dispute resolution to a professional service.
It is a great balance between control and outsourcing where you can tailor the solution according to your needs. The downside is that integrating such different tools may be trickier, and it will add complexity to your billing and coordinate between systems.
The amount of time and resources you commit to managing chargebacks varies with the size of the business.
List of top 12 Chargeback Management Software Tools
1. Kount
Kount enables businesses to distinguish between trustworthy customers and potential fraudsters with unparalleled accuracy.
At the heart of its innovation is the Identity Trust Global Network, the world’s largest repository of fraud and trust-related signals.
Advanced AI is used by Kount to deliver real-time trust decisions within milliseconds, thereby safeguarding businesses against fraud attacks.
Its automation capabilities streamline operations by instantly accepting or declining transactions based on a vast network of fraud data.
Kount also builds up security through location ID and payment data to be in a position to guarantee a safe and seamless customer interaction.
Services offered:
- Fraud Detection and Prevention
- Identity Trust and Verification
- Payment Fraud Protection
- Account Takeover Protection
- Chargeback Management
- Bot Detection and Mitigation
- Personalized Customer Experience Optimization
- Regulatory Compliance Assistance
Website: https://kount.com/
Pricing: Packages start at $1,000 per month, and there are three options: Kount Command, Kount Control, and Kount Central. Email for more pricing information.
2. Seon
Seon provides online businesses with the right tools to battle fraudsters‘ evolving tactics, including Chargeback Management Software Tools, offering fraud protection customized to specific business models.
Its solutions help prevent chargeback through advanced transaction analysis and user behavior monitoring.
Features like BIN checks minimize fraudulent purchases and only allow valid cards like prepaid or gift cards.
Seon’s frictionless setup allows businesses to integrate the system quickly, with plug-and-play SDKs and well-documented REST APIs.
The platform offers transparency with a free trial and flexible pay-as-you-go pricing.
Besides, Seon’s extensive integrations, including Whitebox Machine Learning and device fingerprinting, work seamlessly with any tech stack, providing robust, end-to-end fraud protection.
Services offered:
- Fraud Prevention and Detection
- Chargeback Prevention
- Transaction Analysis
- User Behavior Monitoring
- BIN Check for Card Validation
- Device Fingerprinting
- Whitebox Machine Learning
- Real-Time Risk Scoring
- SDK Integration and API Support
- Pay-as-You-Go Pricing Model
Website: https://seon.io/
Pricing: They also offer free trials. About their different packages, these offer no setup fee, no support fee, and absolutely no credit card is needed. You can have over 14 days free trial and then your subscription automatically becomes pay-as-you-go convenient. 1. Plan starting at $99/month 2. The Plan goes for $299/month. 3. Custom Plan- Requires a quote.
3. Ethoca
Ethoca helps merchants across the world fight fraud and reduce customer disputes while making digital customer experiences better.
Multi-lingual support and near-real-time data sharing of disputes between merchants and financial institutions make Ethoca more effective in fraud prevention.
Its innovative approach helps create a secure online ecosystem for merchants, consumers, and issuers to interact with each other.
Ethoca Alerts represents the best chargeback-industry solution to make information-sharing seamless from prevention to recovery.
It offers a complimentary assessment that would help to identify a set of tailor-made solutions for merchants and provides them with digital receipts on-demand and in a completely transparent transaction, aligning perfectly with what the customers expect in clarity and convenience.
Services offered:
- Fraud Prevention and Detection
- Chargeback Prevention and Recovery
- Near-Real-Time Dispute Data Sharing
- Ethoca Alerts for Dispute Resolution
- Digital Receipt Delivery
- Free Business Assessment
- Multi-Lingual Customer Support
- Secure Merchant-Issuer Collaboration
- Enhanced Digital Customer Experience
Website: https://www.ethoca.com/
Pricing: With different packages, Ethoca services various merchants, card issuers, and partners globally. Reach out for a more detailed quote on their offered chargeback management services.
4. Chargeback Help
Chargeback Help is a fraud management solution designed to help prevent disputes, minimize chargebacks, and recover lost revenue with its PCI-compliant gateway.
Its integrated tools, Ethoca and Verifi, help businesses manage disputes with strong functionality.
The key features include CBH Deflect, which transmits transaction information to banks in near-real-time to avoid disputes; CBH Recover, which helps merchants reverse chargebacks due to friendly fraud by providing high-resolution images of transactions; and Managed Disputes, which enables merchants to handle Visa and Mastercard disputes efficiently.
Their portfolio also comprises CBH Resolve and CBH Enterprise for scalable dispute management solutions.
Services offered:
- Chargeback Prevention and Management
- Dispute Prevention (CBH Deflect)
- Chargeback Reduction (CBH Resolve)
- Revenue Recovery (CBH Recover)
- Scalable Dispute Management (CBH Enterprise)
- PCI-Compliant Payment Gateway
- Near-Real-Time Transaction Data Sharing
- Friendly Fraud Recovery
- Integration with Ethoca and Verifi
- Mastercard and Visa Dispute Management
Website: https://chargebackhelp.com/
Pricing: Chargeback Help provides flexible pricing options: pay-as-you-go, subscription-based, and performance-based. Custom quotes are based on the volume of transactions and the customer’s business needs.
5. Midigator
Midigator is a technology-driven, multi-layered solution for businesses of all sizes that prevent chargebacks, resolves disputes, and recovers lost revenue.
Its simplified analytics help improve chargeback management and business efficiency.
The key features include Advanced Automation, which streamlines tasks; DisputeFlow, which resolves disputes with a few clicks and reduces response time by 84%; and Single Portal Management, which integrates accounts to auto-populate fields and makes chargeback management more efficient.
Services offered:
- Chargeback Prevention and Management
- Dispute Resolution (DisputeFlow)
- Revenue Recovery
- Automated Chargeback Management
- Simplified Analytics and Reporting
- Single Portal Integration for Account Management
- Customizable Automation for Task Efficiency
- Multi-Layered Fraud Protection
- Real-Time Dispute Updates
Website: https://midigator.com/
Pricing: Midigator has four main packages to choose from means that all business sizes are taken care of. All pricing plans are discounted if you pay for the full year instead of monthly.
- Basic $499/month. 2. Pro $999/month. 3. Business $2,499/month. 4. Enterprise $4,999 per month.
6. Chargeback Gurus
Chargeback Gurus is a leader in managing friendly fraud, with over 15 years of experience in the online payment industry and $1 billion in revenue recovery.
They help businesses prevent and recover from chargebacks, successfully thwarting 50% of friendly fraud attempts and winning 70% of disputes.
The Root-Cause Analyzer is a real-time tool that identifies vulnerabilities and improves customer satisfaction, while 360-Degree Merchant Protection uses FPR-360 technology to assess and prevent chargeback risks.
Fast and Secure Onboarding ensures businesses are up and running within three days with secure payment and CRM integration.
Services offered:
- Friendly Fraud Prevention
- Chargeback Management and Recovery
- Root-Cause Analysis for Chargebacks
- 360-Degree Merchant Protection (FPR-360 Technology)
- Dispute Resolution and Win Rate Optimization
- Revenue Recovery
- Real-Time Data Collection and Analysis
- Fast and Secure Onboarding
- Secure Payment Gateway Integration
- CRM Integration
Website: https://www.chargebackgurus.com/
Pricing: The price for Chargeback Gurus depends on the volume and your service needs a subscription or performance-based fee. Contact them to obtain a custom quote.
7. VeriFi
VeriFi provides a full-service chargeback management solution that will reduce stress and simplify the process for businesses.
Some of its main offerings include the Cardholder Dispute Resolution Network, which accelerates dispute resolution within 24 hours and acts as an intermediary between merchants and issuers.
Other features include Detailed Information for both cardholders and issuers, Rapid Dispute Resolution (RDR) for handling pre-dispute cases quickly, and Dispute Representation, where a dedicated team creates compelling evidence on behalf of merchants.
Services offered:
- Chargeback Management
- Cardholder Dispute Resolution Network
- Rapid Dispute Resolution (RDR)
- Dispute Representation with Human Support
- Detailed Information Access for Cardholders and Issuers
- Pre-Dispute Case Resolution
- Global Data Sharing for Fraud Prevention
- Visa-Specific Chargeback Solutions
- Full-Service Chargeback Management Software
Website: https://www.verifi.com/
Pricing: Verifi has let the packaging price be accessible through their contact form. Their packages fit perfectly with all businesses and according to your needs.
8. Sift
Sift provides an all-in-one chargeback management service that combines real-time dispute resolution with prevention to ensure comprehensive fraud protection.
Their software includes Low-Code Integrations, easy setup with minimal developer involvement; Account Defense for blocking account takeovers; and Content Integrity that blocks spam, scams, and more malicious content.
With military-grade security, passwordless authentication, real-time learning, and risk analysis, Sift helps businesses effectively manage fraud at every stage of growth.
Services offered:
- Chargeback Management and Prevention
- Real-Time Dispute Resolution
- Low-Code Integrations for Quick Setup
- Account Takeover (ATO) Protection
- Content Integrity and Malicious Content Blocking
- Intelligent Fraud-Fighting Strategies
- Risk Analysis and Real-Time Learning
- Military-Grade Security and Passwordless Authentication
- Fraud Prevention at All Stages of Business Growth
Website: https://sift.com/
Pricing: You can request a demo from the Sift website and get your package tailored for the services that your business needs. Each of these packages includes a user-friendly dashboard and world-class support.
9. Square
Square is one of the popular payment processing solutions providers for businesses of all sizes.
This company provides a wide set of tools to support businesses by offering both online and in-person payment capabilities, including its terminal hardware with a robust POS app.
It simplifies transactions while offering features like invoices, secure on-file card storage, API customization, and seamless integrations.
With its innovative approach, Square provides businesses with the flexibility and tools they need to streamline operations and enhance the customer experience.
Services offered:
- Online Payment Processing
- In-Person POS Systems
- Terminal Hardware Integration
- Invoicing Solutions
- On-File Card Storage
- API Customization
- Seamless Integrations
Website: https://squareup.com/ca/en
Pricing: Square offers competitive pricing with a fee of 2.65% on all major credit card transactions, plus a flat ₹8 per Interac transaction. For online payments, the rate is 2.9% + ₹25 per transaction, while keyed-in transactions are charged at 3.4% + ₹12.
10. Midmetrics
Midmetrics offers a holistic solution to friendly fraud and chargebacks while improving customer experience.
With over 20 years of experience, the suite of tools and unmatched analytics dashboards provide valuable insights and control, claiming to reduce fraudulent activity by 30-40%.
This means all-in-one management is used, and no multiple portals are needed. Fraud Reduction Tools help to minimize fraudulent transactions and chargebacks later on.
Chargeback Accounting is available, which contains detailed analytics and reports, and accounts are maintained in either cash or accrual.
Services offered:
- Chargeback Management
- Fraud Reduction Tools
- All-in-One Management Platform
- Analytics Dashboards for Insights and Control
- Chargeback Accounting (Cash and Accrual-Based Accounts)
- Fraudulent Transaction Reduction (30-40%)
- Customizable Reporting and Analytics
- Customer Experience Enhancement
- Multi-Portal Integration
Website: https://midmetrics.com/
Pricing: They can send a quote request to their team and provide information about which package is suitable for the business. All the packages include API management software for seamless integration, deep analysis, and actionable reports.
11. Bolt
Bolt is the largest cross-merchant buyer network, providing a one-click checkout system that increases sales while providing top-quality fraud protection.
With a 100% fraud chargeback guarantee, Bolt ensures safe and seamless payments. Customers who sign up can check out without passwords, utilizing the One-Time Password (OTP) system for secure verification.
Key features include Passwordless Checkout, allowing payments via PayPal, Afterpay, etc.; Pre-Built Integrations with shipping, tax, and other providers for speedy setup; and the Shopper Retention Platform to boost repurchase rates by 66% through features such as product recommendations and order tracking.
Services offered:
- One-Click Checkout System
- Passwordless Payment Options (PayPal, Afterpay, etc.)
- Fraud Protection and Chargeback Guarantee
- Pre-built integrations with Shipping and Tax Providers
- Shopper Retention Platform (Dashboard, Product Recommendations, Order Tracking)
- Repurchase Rate Optimization
- Seamless Cross-Merchant Payment Network
- Secure One-Time Password (OTP) Verification
- Revenue Boost and Sales Increase
Website: https://www.bolt.com/
Pricing: Just complete the contact form to connect with the sales team and receive a list of pricing for their packages. At least merchants have a simpler process when it comes to securely requesting payments.
12. Chargebacks911
Chargebacks911 stands apart with world-renowned experts, prestigious partnerships, and the most integrations in the industry,
offering top-tier chargeback management tools for merchants. They help to collect and submit evidence on disputes while providing detailed reports by analyzing the data.
Chargebacks911 delivers scalable, customizable solutions that cater to your business’s unique needs, along with flexible payment options, reason codes, and sales methods—all without the risk of chargeback fraud or disputes.
Customized Solutions for both prevention and representation, that generate revenue recovery and avoid chargebacks; Compliance Review in order not to be taken off by costly mistakes; Affiliate Fraud Prevention to make your advertising campaigns risk-free and profitable.
Services offered:
- Chargeback Prevention and Representation
- Evidence Collection and Submission for Disputes
- Customizable, Scalable Solutions
- Revenue Recovery
- Flexible Payment Options and Reason Codes
- Merchant Compliance Reviews
- Affiliate Fraud Prevention
- Data Analysis and Reporting
- Sales Method Optimization without Chargeback Fraud
Website: https://chargebacks911.com/
Pricing: Package pricing is offered for Chargebacks911, which is customized to the needs of your business. You can easily request a quote by emailing them for chargeback management tools while ensuring that your transaction data is protected from payment fraud.
What to Look for in Chargeback Management Software?
When selecting chargeback management software, the solution should meet your business’s specific needs and help you manage disputes efficiently. What to look for:
1. Fraud Detection and Prevention
Fraud is one of the primary reasons for chargebacks. Therefore, having software that can identify suspicious activity as early as possible is quite important.
Look for AI-driven fraud detection features, which can flag potentially fraudulent transactions before they lead to chargebacks. This can save your business a lot of hassle and money.
2. Automation
The more you can automate, the better. Chargeback software that automates tasks like evidence gathering, dispute submission, and case tracking can save you a lot of time.
It also helps reduce the risk of human error, which is important when you’re dealing with complex disputes.
3. Reporting and Analytics
You will want software that will give you clear, actionable insights into chargeback trends.
Customizable reports help track the causes of chargebacks, spot patterns, and make improvements, such as fraud prevention or customer satisfaction. The better your data, the better you can reduce chargebacks in the future.
4. Integration with Your Systems
Ensure that the software seamlessly integrates with your existing payment systems, CRM, and other tools.
Seamless integration will save you time and reduce errors in transferring data between platforms.
5. Ease of Use and Support
User-friendly software is a must. You don’t want something so complicated that it takes a ton of training to use effectively.
Also, reliable customer support can be a lifesaver when you run into technical issues or need help troubleshooting.
6. Scalability
Your business needs in chargeback management should probably grow with the expansion of your business.
Go for software that will accommodate increasing volumes of transactions as well as disputes and be ready to handle higher transactional volumes without compromising on the level of performance.
What are the Benefits of Chargeback Management Software
- Revenue Recovery: Chargeback management software allows businesses to recover lost funds by effectively managing disputes, increasing their chances of winning chargeback cases.
- Saves Time: Automation eliminates time wasted on gathering evidence and submitting disputes, so businesses can use that time on other vital areas.
- Fraud Reduction: With built-in fraud detection, this software can detect suspicious transactions early, preventing chargebacks and revenue loss.
- Operational Efficiency: Streamlining this chargeback process improves overall efficiency, giving way for businesses to focus on growth and customer satisfaction and not being bogged down by disputes.
Conclusion
Choosing the right chargeback management software tools is key for business houses to safeguard their income, facilitate efficient dispute resolutions, and develop customer confidence.
The chargeback management tools presented here provide solutions that fit any business’ needs-from real-time tracking to automated handling of dispute cases and fraud protection.
Investment in a reliable chargeback management solution can help businesses reduce losses improve operational efficiency and maintain a strong reputation in the competitive marketplace.
Assess your needs, consider the options available, and make a wise decision to protect your business from chargeback-related problems.
FAQs
1. What are the key features to look for in chargeback management software?
Some of the key features to look for include real-time transaction monitoring, automated dispute handling, fraud detection, integration with payment gateways, analytics, and reporting capabilities.
2. How does chargeback management software prevent fraud?
Most software tools include fraud detection mechanisms that analyze transaction patterns, flag suspicious activities, and integrate with fraud prevention systems to minimize the risk of unauthorized transactions.
3. Are these tools applicable to small businesses?
Indeed, most chargeback management tools can be applied to businesses of all sizes, providing scalable solutions and flexible pricing to fit the needs of small and medium enterprises.
4. Do these tools help reduce chargeback fees?
Yes, by preventing fraudulent transactions and increasing the success rate of disputes, chargeback management software can help businesses reduce fees and penalties associated with chargebacks.
5. How do these chargeback management tools integrate with my current payments system?
Most chargeback management software tools integrate seamlessly with significant payment gateways, e-commerce platforms, and also accounting systems, ensuring your current operations are minimally disrupted.
