Chargeback Insurance: Is it Worth It?

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Credit chargebacks – as a business, they can sure ruin your financials in a hurry. Avoiding chargebacks for some companies means purchasing chargeback insurance, but is it really the right way forward for your organization?

What is Chargeback Insurance?

 Chargeback insurance works like most other insurance policies. You pay a premium to a company who covers the costs should a customer involve you in a chargeback dispute. Unfortunately, the simple explanation here only covers some chargeback insurance policies. There are many others out there that don’t always cover you when you need it. In those scenarios, knowing the answer to the question “What does chargeback insurance” do is key because you could have been paying a premium for years when you end up with a pricey chargeback that isn’t covered.

Chargeback insurance typically does not cover friendly fraud, one of the leading causes of chargebacks. This happens when a customer claims the item delivered doesn’t match the description or purchases that weren’t delivered. It also doesn’t usually cover chargebacks that exceed their defined limits or even those that involve digital goods like webinars and downloads.

Is Chargeback Insurance Worth It?

Chargeback insurance can be a huge help in many situations for many companies. The reality is that it’s not enough to be the only tool in your toolbox, though. Because it has so many limitations, you may still face chargeback problems if you aren’t staying on top of things. Dealing with customer service concerns promptly and understanding what the warning signs of fraud might be are key to preventing chargebacks. Better contracts with customers and good record keeping are also both important. Even chargeback management software may help if you have a problem, as it helps you fight back when you have a case.

Chargebacks are a problem for all kinds of merchants today, but chargeback insurance may be one way to help you prevent any issues for your company.

Learn more about how Y2Payments handles chargebacks by contacting us today at 888-693-1850. 

Find Certified Payment Processing Now!

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Whether you’re a brick and mortar, an online merchant, or you provide services to a variety of different merchants, you can’t survive today without a good payment processor. You limit your ability to connect with customers who want to pay with a variety of different options, but choosing a payment processor is tougher than ever. The market gets a bit more crowded every day. How can you find a certified payment processing company that’s a good fit for your organization? This guide can help.

Think About Security

As you work to narrow your choices, security has to be your top priority. You must select a payment processing company that offers your company and your customers security. Typically, that means choosing someone who is PCI-compliant, as they’ll be able to take advantage of the industry’s latest technology to help safeguard the process. Often this involves tokenization or various encryption tools, but these will change over time, so don’t just look at the company’s approach to security now. Ask about updates and changes to see how often they take advantage of what’s out there.

Consider Support

Most people look to fees first, but you know security has to come first. Think the cost to your company should come second? You may want to rethink that. Imagine choosing a company based on their rates only to find out that no support was included with those rates? That would be pretty frustrating if you had an issue, right? Support has to be next on the list of what to consider, as while payment processing will be mostly automated once you get set up, it’s possible that you will need a bit of help once in a while. The ability to reach someone who can help you immediately is invaluable, and having that support built into your costs is important for your company. Look for a processor who offers support both during set up and as you continue to do business.

Costs

The last thing you’ll want to consider is the cost to your company. You want your certified payment processor to have low fees, but you need to keep in mind what those costs involve. Ask about fees for terminals or anything else you have to lease from the company. Find out if you have to work with the company for a certain amount of time. Find out if you have a quota you have to meet or a number you have to stay under, too, so you know what you’re going to end up paying.

In the world of payment processing, there are different kinds of packages. Some offer tiered pricing based on the frequency of your transactions and the amount of each. Some offer a subscription-based model. Flat-rate models are usually great for merchants who do a low volume of business. Some even offer an interchange-plus system where they itemize the fees you pay over the course of a month and help you see what rates you’ve paid and to whom you’ve paid them. Your pricing model depends on the way your processor does business, so it’s essential to find an organization that fits your business model.

A certified payment processor can help your business grow in ways you never thought possible, but the reality is that there’s no one-size-fits-all model when it comes to payment processing because businesses aren’t like. Instead, you have to search to find a solution that meets your needs.

If you’re looking for a great payment processor, give Y2 Payments a call today. We’ll help you understand our unique business philosophy and decide whether our model works well for your company. To learn more, connect with us today.

Is Becoming a Payment Gateway Reseller Worth It?

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Ecommerce only continues to grow. One recent study found that the world will include 1.92 billion digital buyers over the course of the next year, and every single one of them is a potential customer for the next ecommerce startup. Companies that do business online, though, need serious help in a number of different areas. Often they need assistance with inventory, bespoke computer systems, and much more. If you’re one of the many companies who offer that assistance, you may be looking to step up your game a bit. Entering the world of payment gateway resellers can help you do just that, and it could prove to be a very profitable investment.

What Is a Payment Gateway Reseller?

If you’re not familiar with the concept already, the idea here is that you market another company’s digital payment processing services to your clients. You get a great rate from that payment gateway company, and you choose to mark up your services in any way you want.

For example, maybe the rate the company offers you is three percent and twenty cents on every transaction. You’d be able to mark that up for your customers as much as you like. If you upped the transaction fee to thirty cents per transaction, you’d get ten cents every time they processed a sale. It may not sound like a lot of money, but if you have a customer who is doing a serious volume of business, it’s going to add up quickly. You can mark up any part of the rate you like, and if you have several companies working with the payment services you’ve resold, you’re going to have a beautiful revenue stream you may not have previously considered.

Why Y2 Payments?

Decided this is the right opportunity to meet your needs? Y2 Payments is the perfect partner. Our system is certified by the biggest credit card processors in the industry, and our interface means you work seamlessly with your clients. We even offer customization that helps promote your company’s brand as well as a great leads program and unlimited support that’s always free.

Ready to become a payment gateway reseller with us? Give us a call today at 888-693-1850 to learn more.

Chargeback Management Software: The Right Tool for Avoiding Chargebacks?

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Chargebacks: they’re a serious problem no merchant wants to face today. They not only interrupt your revenue stream, but they also take up your time and energy. While you can fight them, the burden of proof is always going to be on you, and that may lead you to consider a few ways of avoiding these problematic transactions. Some look to  chargeback management software as the ideal option, but is it really the best tool when you’re building a plan for preventing chargebacks?

What Is It?

To understand why chargeback management software is such an important tool for so many businesses, first, it’s important to understand why chargebacks are such a problem. Google the phrase “what are chargebacks,” and you’ll get a quick overview of the issue. Chargebacks occur when a customer disputes the transaction. Often that means retailers either end up with a delayed payment or no payment at all for the goods or services involved.

Chargeback management software, then, is a way to help prevent the problem initially. While every company offers something a little different, typically this type of software involves real-time notifications and alerts as well as automated chargeback responses and representation in cases. Typically it also comes with data management and a better overview of what’s happening with chargebacks in your business.

Is It the Right Way Forward?

Chargeback management software is one of many tools you’ll want to keep in your toolbox to help you stay on top of your business’ needs. Start by looking carefully at the chargebacks that you face on a regular basis. Do others in your industry face the same issue or is this unique to your company? Use the reason codes attached to the chargebacks to help you better understand what’s happening in your business and why you’re experiencing these claims.

Don’t forget to do some research here. Chargeback rules are changing all of the time, as are the regulations that govern them. Read as much as you can so you have a better understanding of these changes and how they might affect your company.

What To Look for In Chargeback Management Software

If you think chargeback management software might be right for you, there are a few things you’ll want to consider. First, make sure the software includes the information you need to track and analyze chargeback activity for your business. Without that data, you may never solve a persistent problem. Second, look for automated chargeback response. It will save you quite a bit of time in the long run, and it may help increase the overall number of cases you win.

Additionally, ensure the software you select is updated on an ongoing basis. Remember that chargeback rules and legislation change continuously, and that means that the software you use to manage them needs to change just as frequently.

Finally, look at every company’s win rate. Most chargeback software programs will show you their win rate average to help you decide whether it’s a purchase you want to make. Some will go as far as offering you a win rate guarantee, though not all are willing to do so. A win rate average, though, will at least show you how many other merchants are succeeding thanks to that software.

Chargeback management software is one great way to keep your chargebacks in check and keep your business moving forward. Y2 Payments has a robust, real-time system that helps you look closer at what’s happening and assists with chargeback management, something that could save you time and money. To explore what Y2 Payments has to offer, please contact us today.

Do These Three Things Before You Buy IT Chargeback Software

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In a recent ClearSale survey, 81% of customers surveyed said they would fill out a chargeback request out of sheer convenience. The idea that customers would initiate a chargeback rather than taking the steps necessary to contact the merchant is terrifying for most merchants because chargebacks are incredibly expensive. 

Not only do you lose the merchandise and the money, but you also face chargeback fines. More than that, though, you lose valuable time trying to deal with the chargeback. That’s time you could have spent on improving your product line, customer service, or your store as a whole. All of that makes software for chargebacks – a valuable IT solution to the problem – is in great demand today.

What is Chargeback Software?

Chargeback software is an IT option that helps you reduce the number of chargebacks you see and win the disputes that have already been filed against you. Different providers offer different options. Some focus on an alert network that allows you to see the moment a chargeback has been filed against you. Others, though, offer turnkey services allowing you not only to see when a charge has been filed, but also follow-up steps to help you win your case. 

The Best Chargeback Software  

Does this sound like the solution your business needs now? There are many that claim to be the best IT chargeback software on the market today, but few live up to that claim. As you try to evaluate what’s out there, be sure you consider the following aspects. 

  • Look for an IT solution that actually addresses your problem. Do you want something that just intercepts chargebacks or are you looking for a way to fight them? Make sure you know what you want out of a piece of software before you buy.
  • Look for one with robust data. You’re never going to get on top of your chargeback problem if you don’t get some data. Make sure your software solution identifies the source of the chargebacks so you know more about how to adjust your company policies. 
  • Look for one that saves you money. If it’s too expensive, you’re not really doing anything for your company, so make certain you understand whether a monthly service fee is involved or whether it will cost you on a case by case basis and whether that makes financial sense for your company. 

Chargebacks happen, but they don’t have to be so pervasive with solutions like chargeback software available today.  For information on how Y2Payments system works, give us a call today at 888-693-1850.

Unsecured vs. Secured Credit Card: A Guide for Merchants

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Once your business decides to accept credit cards, you open your company to an entirely different world of payments – one that requires a good payment processor like Y2 Payments on your side. As you work with customers to accept their preferred form of payment, you’re likely to see two main types of payments – debit and credit cards. Debit cards debit the cardholder’s bank account directly. Credit cards charge the amount to the customer’s bank, then the customer repays that amount. There are, however, differences in credit cards. Customers may either be carrying a secured credit card or an unsecured credit card.  

Secured Credit Cards

Customers who have bad credit or no credit at all may not be able to open a credit card account with a simple application. Instead, the issuing bank may need some assurances that the customer can actually pay his or her bill. As a result, in addition to the issuing bank accepting the application for the customer’s credit card, it will also require the customer to deposit a certain amount of money, sometimes as little as a hundred dollars. The amount deposited is the limit for the customer’s credit card.

Unsecured Credit Cards

Most merchants are more familiar with unsecured credit cards. These are a bit more traditional. The customer applies for the card, then the card issuer grants him or her a card. The limit is based on current income, credit history, and overall credit score. That limit, though, can be massive. 

The difference between secured and unsecured credit card products isn’t vast. Instead, it’s simply a matter of protecting the issuing bank to ensure all customers have access to this type of payment method. From a merchant’s point of view, the two don’t really process any differently. Instead, they’ll both work for the goods and services you have available. 

For information on Y2Payments, give us a call today at 888-693-1850.

Chargeback Protection for Merchants

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Accepting credit cards has become synonymous with finding ways of avoiding chargebacks for many merchants today. What are chargebacks? If you’re unfamiliar with the concept, chargebacks occur when customers contact their credit card company to dispute a charge on their cards. If the dispute is deemed to hold some merit, your merchant account is actually debited the amount of money in question (even if it has already cleared), and you have to pay chargeback fees, which can be as much as $100 in some cases. 

For many small businesses, finding merchant protection against chargebacks is nothing short of an absolute must. What can you do to end the problem for your company? These tips can help. 

Preventing Chargebacks

There are a number of things you can do to prevent customers from filing a chargeback with the credit card company.

  1. Understand why Chargebacks are Occurring: The single best move you can make is to take a look at the data you’ve already gathered on chargebacks. If a common theme emerges, you can address that problem immediately. If the chargeback reason codes are all over the place, you may have to address issues in several areas. 
  2. Create Stronger Policies: If customers don’t understand your purchase policy, your restock policy, your return policy, or even your subscription policy, they’re going to get frustrated. What often happens when customers get frustrated is that they don’t know where to turn, and one of the easiest, fastest ways for them to deal with the problem is to contact their credit card company and get their money back. You can avoid all of this if your policies as far as shipping, billing, and returns are carefully worded on your site and easy to find. Many sites even put a little info section next to their product or service description so customers understand what they’re purchasing. 
  3. Build Better Customer Service: What happens when a customer contacts you? Your team and policies with regard to customer service may need to be revamped as well. Make it easy for customers to reach out to you. Offer a phone number, 24-hour chat service, an email address that you check regularly, or even social media links to help better connect with customers. Not only will this step help to prevent chargeback problems, but it may also increase your brand’s credibility, and that could lead to repeat customers. Just remember that rapid replies are essential. They’re already frustrated when they reach out to you. Be ready to help as soon as possible. 
  4. Consider Shipping Updates: If you sell physical products, be sure customers know when their items have shipped and how soon they should arrive at their doorsteps. There are many automated services you can deploy to do this for you, and the more insight you can offer customers, the more likely you are to avoid shipping related chargebacks. 
  5. Beef Up Anti-Fraud Tools: Fraud happens, and it can actually create more chargebacks than you’d imagine. While criminal fraud represents the minority of those chargebacks, friendly fraud happens quite often. Sometimes it’s buyer’s remorse. In other cases, they just don’t know how damaging it is to the merchant at the other end. Either way, use the anti-fraud tools you have at your disposal. Address verification, customer blacklists, and more can all help you prevent problems. There are lots of antifraud platforms, too, that can help you build a more robust strategy. 

A Note About Subscriptions

If you’re one of the many merchants who offer subscription-based services, you need to recognize that you’re at real risk for chargebacks. It should be an opt-in option if possible. Ensure you make it incredibly easy to cancel those subscriptions, too. Additionally, you need to ensure the description that goes to a customer’s credit card statement helps identify what’s going on. If you have another name that you’re doing business as, it should be part of what actually gets charged to a customer’s card. Furthermore, customers should know what that charge will look like on their cards. 

The Moral of the Story

Chargebacks happen, but they don’t have to happen to you. At Y2 Payments, we have a number of solutions aimed at preventing chargebacks. Contact us today to learn more about how we can help

What is White Label Credit Card Processing?

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As you search for a credit card processing service that meets your needs, you may come across a number of terms you simply don’t understand, and that can make it complicated to select a good service for your company. One of the toughest terms you might encounter is “white label credit card processing service.” What does it actually mean, and how can you tell which companies meet the criteria behind this term? This quick guide can help you make the right decisions. 

The Basics

Credit card processing, while complicated, is easier to understand than you might imagine. Your customer presents a credit card to purchase your merchandise or services. When you run that credit card, it goes through your processor back to the acquiring bank who sends it to the credit card network who sends it to the issuing bank. Once authorization occurs, the process happens in reverse.  Your processor, though, is key to what happens at each stage of the game. 

Choosing a processor often means choosing from some pretty big names in the business, but the reality is that the market for processors is growing, and in some cases, it’s growing a lot. The reason for the growth? Branded credit card processing, also known as white label credit card processing services. 

Understanding the Idea

In the simplest possible terms, white label processing means a company has the opportunity to provide payment processing services under its own name. Instead of using a big name processor, a company chooses a white label payment gateway, then adds their brand to that solution. For many companies, it’s one more potential service avenue, as well as a stronger image and reputation. Imagine, for example, you provide turnkey business technology services to brick and mortar merchants. The ability to offer credit card processing to those same merchants, and get a slice of their sales, is an incredible one, and that’s exactly what white label credit card processing services allow you to do. 

Are There Drawbacks?

There are many benefits to being able to offer a service like this one. It can help expand your customer base and your brand, and it can help you build real relationships with your customers. Naturally, though, with any benefits come drawbacks. In this case, potential problems like PCI compliance remain on your shoulders if you’re a payment processing provider, and you’re usually stuck with what the other company has to offer. You can customize the look and feel for your users, but outside of that, there isn’t a lot of customization to be done. 

Is it Right For Me?

This could be a great option for your business, but it means choosing the best white label credit card processing companies to help narrow down your decision. Y2 Payments offers a phenomenal White Label Partner System you’re certainly going to want to consider.

We have a payment system that has already been certified by all of today’s top credit card processor, and thanks to a unique interface, you can work almost seamlessly with processors both on the front and back-end. You can customize your site’s colors and graphics as well as the applications involved. You also have the opportunity to customize your company communications and any collateral materials you offer. Want to offer your solution to others? We have lead tracking, sales materials, and much more ready to meet your needs. We even offer free, unlimited support. 

White label credit card processing services can offer some very useful options for your business. If you’ve thought about reselling in the past or you’re just looking for a new way to promote your brand, this may be the option you need to consider. It’s a great way to create customer loyalty and build some flexibility into your enterprise now. It may even mean higher levels of customer satisfaction for your clients. 

White label processing isn’t as complex as you may think. Instead, with the right partner like Y2 Payments on your side, it’s the way forward. To learn more about our options, contact us today. 

Preventing Chargebacks on Recurring Payments

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Too many chargebacks mean serious losses for your business. It could also mean you have trouble finding a credit card processor who will work with you in the future. Chargebacks are more likely to occur with recurring charges to a customer’s card than they are anywhere else, but is there anything you can do to prevent them?

What Are Chargebacks?

If you’re not already familiar with the term, chargebacks occur when the customer disputes the transaction. The merchant has the charges debited from its bank account, and the customer gets his or her money back. The goal of the card industry is to protect consumers and the merchant bears the risk.  Unfortunately, though, sometimes customers just aren’t happy and choose to initiate a chargeback. In settings like that, it is possible to reduce your numbers. 

Preventing Chargebacks

If you have a recurring service that customers can sign up for, there are several ways of avoiding chargebacks.  First, make sure you clearly inform customers about free trials. Help them understand how long that trial lasts and what happens at the end of it. As it gets closer, make sure they know how much time is remaining and how long they have to renew. Ensure they know exactly how much they will be charged, too. 

Beyond that, you can clearly state your refund and return policy. Highlight your policies on your sign up page. You may even want to have them check a box so you know they understand when they can get a refund or make a return. You may also want to make canceling a subscription a fairly easy process. After all, if a customer knows he or she can easily cancel, you’re more likely to empower them and help them understand that they have control. That means less risk, which usually translates to more loyal customers. 

Finally, make certain the bill is posted on a regular bill. Keeping the same billing date and the same format creates a level of transparency that is a must with recurring charges. Chargebacks happen, especially with recurring services, but they don’t have to happen to you. Contact Y2Payments today at 888-693-1850 to learn about our payment processing and chargeback protection system.

EMV Chip Cards – Are They More Secure?

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Credit card processing has changed significantly in the past several years, and one of the biggest advances came with EMV chip cards. Because processing credit cards could frequently involve fraud, card issuers knew something had to change, and they believe EMV chip cards may make the process more secure, but is this really the advance necessary to keep customer data safe?

Credit card processing formerly relied on a magnetic stripe. Initially developed in the 1960s, this technology is the same used to develop the cassette tape, and while the US was a leader in early credit card technology, it was quite slow to adopt anything after the magnetic strip. Other parts of the world, though, quickly upgraded to the EMV chip for a number of reasons. First, the cards are quite difficult to clone. Technologies fraudsters were using to clone cards, like skimmers, don’t work with the chips, and that means in places where the EMV is common, some types of fraud have declined dramatically. More than that, though, EMV cards have better encryption technology build directly into the chip. That means the data isn’t broadcasted when a customer pays. 

Fraud is a multi-billion dollar industry. In 2017 alone, more than 14.2 million credit card numbers were exposed, and that makes this a serious problem for banks and merchants alike. While EMV cards aren’t the only answer to this fraud problem, they are one that may prove useful in fighting fraud wherever possible. 

For merchants, that may mean an equipment upgrade to help meet this new standard of security, which will likely present an initial upgrade cost, but it’s worth it to ensure that every customer in your store can shop safely and know that you’re going to do everything possible to keep credit card numbers safe during each transaction.

Contact Y2Payments today at 888-693-1850 to learn how we can help provide you with a superior payment system and fraud protection.