A new tool to reduce your chargebacks

[cj]

Hi all,

One of the biggest issues currently in our industry is chargebacks, & the fact that we are often pushed past the 1% threshold by 'friendly fraud' customers. Friendly fraud accounts for around 80% of all chargebacks, and until now there have been very few successful products recognised by banks available to prove that a surfer has joined your site & accessed it.

There are currently rumours circulating through the banks that visa will go to .75% in the coming months. We can cross our fingers that this won't happen, but its inevitable that we MUST make major changes in the way we sign members up to our sites.

For the last 6 months, I have watched the pennywize crew who have been testing internal methods to reduce chargebacks with some clients who had high chargeback related problems with their own mechant processing, and have noticed amazing results in a ) the number of people who even ask for a chargeback and b ) the number of chargebacks that are successful.

There's also the additional problem of affiliate fraud and not knowing which affiliate is creating the most chargeback problems. This system allows you to monitor exactly which affiliates are causing you trouble.

This service is now available to the webmaster community to beta test, & I think you will be impressed by the simplicity of this product. Client Confirm offers you the following features:

Significantly reduce chargebacks
Reduce the incident of 'friendly fraud' by customers
Reduce or isolate fraud from your affiliates
Better qualify your members
Allow you to accept foreign signups with confidence
Give you much more proof when fighting a dispute

This is how it works:

* The surfer visits your website, and signs up as normal - nothing to interfere with your join conversions

* Before the 'member' is allowed into the members area, they must 'confirm' their transaction using phone technology (1800 number for usa, mexico & canada, SMS for the rest of the world)

* A unique number is sent to the SMS customer which then must be entered into the site - or for usa customers the 1800 number gives a unique number plus requires a voice recording stating their name and age

This program is brought to you by the makers of Pennywize, and is written based on extensive experience with high volume transactions. It only takes 5 minutes to sign up and 15 to setup - so take a look and see how this can help your chargeback problem!

[Sausage]

CJ, is this similar to what Steve uses for verification for his Cash Mountain joins ?

Originally posted by cj@Feb 11 2004, 04:39 PM
Hi all,

One of the biggest issues currently in our industry is chargebacks, & the fact that we are often pushed past the 1% threshold by 'friendly fraud' customers. Friendly fraud accounts for around 80% of all chargebacks, and until now there have been very few successful products recognised by banks available to prove that a surfer has joined your site & accessed it.

There are currently rumours circulating through the banks that visa will go to .75% in the coming months. We can cross our fingers that this won't happen, but its inevitable that we MUST make major changes in the way we sign members up to our sites.

For the last 6 months, I have watched the pennywize crew who have been testing internal methods to reduce chargebacks with some clients who had high chargeback related problems with their own mechant processing, and have noticed amazing results in a ) the number of people who even ask for a chargeback and b ) the number of chargebacks that are successful.

There's also the additional problem of affiliate fraud and not knowing which affiliate is creating the most chargeback problems. This system allows you to monitor exactly which affiliates are causing you trouble.

This service is now available to the webmaster community to beta test, & I think you will be impressed by the simplicity of this product. Client Confirm offers you the following features:

Significantly reduce chargebacks
Reduce the incident of 'friendly fraud' by customers
Reduce or isolate fraud from your affiliates
Better qualify your members
Allow you to accept foreign signups with confidence
Give you much more proof when fighting a dispute

This is how it works:

* The surfer visits your website, and signs up as normal - nothing to interfere with your join conversions

* Before the 'member' is allowed into the members area, they must 'confirm' their transaction using phone technology (1800 number for usa, mexico & canada, SMS for the rest of the world)

* A unique number is sent to the SMS customer which then must be entered into the site - or for usa customers the 1800 number gives a unique number plus requires a voice recording stating their name and age

This program is brought to you by the makers of Pennywize, and is written based on extensive experience with high volume transactions. It only takes 5 minutes to sign up and 15 to setup - so take a look and see how this can help your chargeback problem!

Yeah I got that today. A couple of problems...you have to use messaging on a cell phone in europe and not everyone has cellphones and older customers can't text message because they don't know how. I am also not quite sure what happens if they fuck up on their response. Do you have to manually refund? Don't think this is quite there yet.

[Mike AI]

I like the idea, and glad people are working on solutions.

However it may be too much work for the average surfer with his dick in his hand.

I would like to see conversions before and after this solution was used.

Originally posted by Mike AI@Feb 11 2004, 04:47 PM
I like the idea, and glad people are working on solutions.

However it may be too much work for the average surfer with his dick in his hand.

I would like to see conversions before and after this solution was used.

Damn I can't believe it Mikee. We actually agree.

[cj]

Sausage, yes it is similar - this is the much improved commercial version with the bells and whistles attached ;-)

jsdude, toll free numbers for EU are on their way

Mike, over 90% have no problem confirming. It doesnt affect conversions because the user has already signed up and had their cc approved etc.

As for the average surfer with his dick in his hand, he's also the average guy who's gonna dispute the charge when his wife finds the bill you should see what happens to average surfer with his dick in his hand when we threaten to play the voice recording for his wife!!!! (we don't actually do that, but he implication is enough) ;-)

[Dianna Vesta]

Originally posted by Mike AI@Feb 11 2004, 07:47 PM
I like the idea, and glad people are working on solutions.

However it may be too much work for the average surfer with his dick in his hand.

I would like to see conversions before and after this solution was used.

I agree with this. After all 900 billing never took off and I think the main reason was that extra step.

[Mike AI]

Diana, can you shrink your avatar a little. It is causing the pages to shift.

thanks

[Sausage]

I tried the system with some of my SE traffic and it converted much better than average without the scrub and their own merchant account, but had about 60-70% confirm ... which is probably not too bad considering.

If they can do upwards of an 80-90% confirm rate, then hats off to em! It would definitely be the way to go, and you would probably get more sales as a result.

[Mike AI]

It is a step in the right direction. I am sure it would be a great solution for those who have a problem with chargebacks. Fortunately we are way under the 1%.


CJ - I think you should dedicate part of your radio show to this!

[cj]

Originally posted by Dianna Vesta+Feb 11 2004, 07:53 PM-->