Merchanto

🌐 Risks Caused by Chargebacks – Are They Slowing Your Business Down? Chargebacks can be a major headache for businesses, especially in today’s quick-moving digital economy. They not only impact your revenue but can also harm customer relationships and put your merchant account at risk. 🚨 Here are some common challenges caused by chargebacks that businesses face: 💶 Chargeback-Related Fees: Chargebacks aren’t just about reversing payments—processing them often incurs extra fees that can quickly add up, draining your bottom line. ⛔️ Dispute Monitoring and Restrictions: Persistent chargebacks may land you in monitoring programs, leading to stricter oversight and potential account closures. 📊 Blocked MIDs: If your Merchant Identification Number (MID) is blocked because of excessive chargebacks, you will be unable to process payments, resulting in an immediate loss of income. 🟡 TMF/MATCH Lists: Once listed on a Terminated Merchant File (TMF) or MATCH list, your ability to form new payment partnerships becomes very limited. 💡Fewer Payment Processor Options: A history of chargebacks can make it difficult to find acquirers willing to work with you, limiting payment options.   👥 Higher Administrative and Legal Costs: Handling chargebacks requires time, resources, and sometimes legal support, driving up operational costs. ❌ Increased Fees for High-Risk Businesses: Companies flagged as high-risk due to chargebacks often face higher processing fees, cutting into profits. At Merchanto.org, we specialize in helping businesses stay ahead of chargebacks with smart, proactive solutions that stop disputes before they start. 💥 Ready to protect your profits and keep your business growing smoothly? Let’s make chargebacks a thing of the past! 🌟 Fill out our quick application form on our website, and we’ll show you how we can safeguard your revenue today. ⬇️ 👉🏾 Merchanto.org  📬 support@merchanto.org  _______ #Chargeback #Dispute #ChargebackManagement #DisputePrevention #PaymentProcessing #PSP #Visa #MasterCard

Stripe Automation Tool x Merchanto! 🚀 We’re thrilled to announce the release of our Stripe Automation Tool for MasterCard alerts! 🔥 As many of you know, handling MasterCard alerts has traditionally been a manual, time-consuming process that requires constant attention to ensure that refunds are processed efficiently. Well, we’re changing the game! Our new tool automates the entire Stripe process, allowing refunds to be handled without any manual intervention. This means you can save valuable time and streamline your operations like never before. Key Benefits: 🕒 Time-Saving: No more manual processing of alerts on Stripe. 🔄 Streamlined Workflow: Automatic refunds and subscription cancellations. 📲 Slack Notifications: Receive real-time alerts directly on Slack, keeping you informed and in control. This is a huge step forward in making chargeback management more efficient for businesses using Stripe. We're excited to see how this will enhance your experience and help you stay ahead of the curve. For those who are ready to take their MasterCard alert management to the next level, this tool is a game-changer. 💼 ✅ Let’s automate the tiring tasks and forget about chargebacks! For more info: 🌐 merchanto.org 📬 sales@merchanto.org #StripeAutomation #ChargebackManagement #Stripe #FintechInnovation #SlackIntegration

Visa Acquirer Monitoring Program (VAMP): Key Changes Coming in May 2025 Visa's Acquirer Monitoring Program (VAMP) is a key part of its compliance toolkit. It keeps an eye on acquirers and their agents to make sure they don’t surpass set limits for disputes and fraud. When these limits are exceeded, Visa steps in with corrective actions. This proactive approach helps control the risks tied to high chargeback rates. 🔍 What's New with VAMP? 1️⃣ Program Consolidation: Visa will remove the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP) for merchants in the Visa Europe region. The updated VAMP will combine both programs, making it simpler for eurozone merchants. This change will be effective starting March 31, 2025. 2️⃣ New Compliance Criteria: The new VAMP will introduce transaction count-based thresholds. It will now combine both fraud and non-fraud disputes into a single metric, aiming to reduce complications from high dispute ratios. 3️⃣ Updated Security Measures: Visa will enhance its security protocols, including updates to the Visa Account Attack Intelligence Score system. This will help reduce brute force fraud attacks that try to access valid payment information. New thresholds will be set to improve protection against these attacks. 4️⃣ Risk-Based Enforcement: Visa will shift to a risk-based approach for enforcement. This means they will offer more flexibility to clients based on their risk levels. These changes will take effect on April 1, 2025. What This Means for Merchants: 👉🏾 With the new VAMP changes, Visa is shifting to a transaction count-based system that combines both fraud and non-fraud chargebacks. This updated approach will also include new criteria for tracking enumerated transactions using the Visa Account Attack Intelligence (VAAI) Score system, rather than just focusing on transactions blocked by the Risk Operations Center (ROC). 💡Starting April 1, 2025, Visa Europe merchants will find tools like CDRN, RDR, and Order Insight with CE3.0 absolutely essential for managing dispute risks. These tools will not only help you avoid penalties but also significantly reduce your exposure to disputes. 🤔If you’re not already using solutions like CDRN or RDR, you could be missing out on major benefits. Connect with our experts at Merchanto.org today and discover how our solutions can cut your fraud and chargeback liability. ✅ Don’t wait—get ahead of the changes and protect your business now! ____ #VAMP #Visa #ChargebackPrevention #FraudProtection #VisaCompliance #MerchantProtection #DisputeManagement #PaymentSecurity #RiskReduction #MerchantSolutions

➡️ What is a Bank Chargeback? Did you know that chargebacks can be started by the BANK, not just the customer? 😱 🏦A bank chargeback happens when the issuing bank finds errors in a merchant's transaction processing. 🙅🏽♂️Typically, neither the cardholder nor the merchant is aware that a chargeback has been filed or is being processed. 📈This can cause serious issues, including the time and cost to investigate chargebacks, managing customer frustration when they discover their purchase was canceled, and risking the loss of the customer. ⛔️ Banks start the chargeback process when they detect these errors: ▫️Missing or Incorrect Information: such as an address, CVV code, or expiry date; ▪️Declined Authorization: an authorization request that was declined; ▫️No Authorization: authorization for the purchase was not provided; ▪️Expired Card: this is very common and can occur with involuntary chargebacks; ▫️Late Presentment: the transaction was processed too late (usually after 30 days); ▪️Incorrect Currency, Transaction Code, Domestic Transaction Processing Violation: an incorrect transaction code or the wrong currency code was used; ▫️Non-Matching Account Number: the account number doesn’t match the bank's records; ▪️Incorrect Transaction Amount or Account Number: the wrong amount was manually entered by the merchant or an invalid account number was entered; ▫️Duplicate Processing: processing the same transaction multiple times; ▪️Merchant Fraud: the credit card issuer suspects fraudulent transactions are being made by the merchant. This can happen when your chargeback ratio exceeds a determined limit. 🔵 Each card issuer has its own list of chargeback reason codes to help track these issues. 👉🏾 If you handle bank chargebacks yourself, it’s important to know these reason codes and understand how to effectively manage and defend against them. ✅ We'll discuss this further in our next article. #Chargeback #FriendlyFraud #PSP #Dispute #ChargebackManagement #BankChargebacks #MerchantSolutions #TransactionErrors #CustomerService #PaymentProcessing #Ecommerce #FraudPrevention #BusinessTips #MerchantServices

🧐 Did You Know: Apple Pay Keeps Your Card Hidden🍏🪪 When you make a transaction with Apple Pay, your card number is securely hidden. Apple Pay uses a technology called "tokenization" to transfer money from customers to vendors. ➡️ How Does Tokenization Work? Tokenization adds an extra layer of security by replacing your actual card number with a "token." This token is a unique series of numbers that looks like a card number but is only linked to your account and your mobile phone. 🔍 Why Is Tokenization Important? If a thief manages to steal the token, they won’t be able to use it without your mobile phone. Attempting to use the stolen token alerts the card issuer that it's been compromised, which then triggers the generation of a new token. This process is quick and inexpensive, unlike canceling a card, issuing a new one, and updating all recurring payments. ♻️ The Payment Process with Apple Pay 1️⃣ Token Presentation: The cardholder presents the token to the merchant instead of the actual card number. 2️⃣ Authorization Request: The merchant sends an authorization request with the token to the payment acquirer. 3️⃣ Scheme Lookup: The request flows to the card scheme, which uses the token to look up the actual card number in its secure token vault. 4️⃣ De-tokenization: The scheme replaces the token in the authorization request with the actual card number and sends this to the card issuer. 5️⃣ Authorization Response: The issuer processes the authorization and sends the response back to the scheme. 6️⃣ Re-tokenization: The scheme replaces the actual card number in the response with the token and removes the actual card number before sending the response back to the acquirer. 7️⃣ Merchant Notification: The authorization response with the token flows back to the merchant, completing the transaction. ✅ Apple Pay ensures your transactions are secure by hiding your card number through tokenization. This method not only protects your actual card information but also simplifies the process of replacing compromised tokens. So, next time you use Apple Pay, you can be confident that your financial details are well protected. #Tokenization #ApplePay #CardSecurity #MerchantServices #PaymentProcessing #PSP #DigitalPayments #SecureTransactions #FinTech #PaymentGateway

Credit & Debit Card Brands: Merchant Fees 🔎 As a merchant, it’s crucial to understand the major credit card brands and how they operate. 🟡 A credit card issuer is different from a credit card brand, though some brands perform both roles. ☝🏿The brand refers to the larger card association, such as Visa or Mastercard. The issuer is typically a bank that provides customers with a credit card. For merchants, the issuer of the card is less important. What’s more important is the card brand, as it determines the interchange fees you’ll need to pay. 🌎 The 4 major credit card brands are Visa, Mastercard, American Express, and Discover. Additionally, other networks like UnionPay in China and Japan Credit Bureau are also significant. ▪️Visa and Mastercard: These are credit card brands (also known as networks or associations). They do not issue cards themselves but partner with credit card issuers such as Bank of America, Chase, and Capital One and many others. ▪️Discover and American Express: These are both card brands and issuers. This means most Discover and American Express cards will only have one logo on them, indicating that the same company is both the brand and the issuer. 🔴 Credit card networks charge different fees for each transaction. These fees are a key factor for businesses when deciding which credit cards to accept. 👉🏽Types of Fees on Credit Card Transactions Businesses face two main types of fees for each credit card transaction: interchange fees and assessment fees. 📍Interchange fee. This fee is charged by the bank that issued the credit card. For example, if Wells Fargo issued a Mastercard to a customer, the business pays an interchange fee to Wells Fargo whenever the customer uses that card. 📍Assessment fee. This fee goes to the credit card network. Using the same Wells Fargo-issued Mastercard example, the assessment fee is paid to Mastercard for each purchase. Debit cards usually have lower fees for businesses and are priced differently. ❓Why American Express and Discover Charge Higher Fees American Express and Discover charge higher fees because they act as both the network and the issuer of their credit cards. This means they do more of the work for each transaction and keep both the interchange and assessment fees. However, their higher fees lead some businesses to not accept their cards. 🔹 Each business that accepts credit card payments is assigned a merchant category code (MCC). Different categories of businesses have different interchange fees. ⛔️ Different card brands have various dispute monitoring programs to detect and prevent fraudulent transactions. Failure to manage disputes properly can lead to substantial fines and even merchant account closures for businesses. ✅ Merchanto.org offers comprehensive solutions to help businesses prevent disputes and manage chargebacks effectively. For more information on how Merchanto.org can safeguard your business, contact us at: 📬 support@merchanto.org

🏦 Acquiring vs Issuing Bank - What's the Difference? The terms “acquiring” and “issuing” do not point to specific banks, but rather describe where those banks are in the transaction flow. 🔎 In simple terms, the acquiring bank handles part of the transaction process for the merchant, while the issuing bank serves the customer (or cardholder). 💡Issuing bank: key functions   - Manage credit card applications - Offer and handle debit or credit accounts - Issue credit and debit cards to authorized cardholders - Approve or decline cardholder transactions - Release funds to acquiring banks upon transaction approval - Allow cardholders to make purchases with payment cards - Initiate the chargeback process on the cardholder’s behalf - Review chargeback responses and determine liability 💡 Acquiring bank: key functions  - Offer merchant account services - Set rules and criteria for merchant accounts - Track merchant account activity (deposits, withdrawals, fees, etc.) - Process authorization requests - Deposit funds into merchant account when transactions are processed - Allow merchants to earn money from purchases made with payment cards - Manage chargeback notices and debits  - Receive, review, and forward chargeback responses 📌 The acquiring bank assists merchants with payment acceptance, while the issuing bank focuses on providing payment cards and managing customer accounts. 📌 The acquiring bank is involved in payment processing and settlement, while the issuing bank is involved in card issuance and account management for cardholders. ✅ Check the illustration below for a visual representation of how payment transactions flow from the acquirer to the issuer and back. _________ #BankingBasics #FinancialServices #PaymentProcessing #MerchantServices #CreditCardManagement #TransactionFlow #IssuingBank #AcquiringBank #PaymentAcceptance #CardIssuance #AccountManagement #ChargebackProcess #PaymentTransactions #MerchantAccounts #PaymentFlow

Stripe Radar 🆚 Merchanto 🤔❓ 🔺Here's how Stripe Radar works: When a business signs up for this service, Stripe uses its advanced fraud detection technology to analyze transactions for potential fraud. 📈 But, there's an extra cost involved: 0.40% per transaction, on top of Stripe's regular rates. This may seem small, but it adds up, making every successful transaction pricier. 📍Especially for businesses in high-risk sectors, Stripe might require using 3-D Secure technologies like Visa Secure and Mastercard Identity Check. These tools add an extra layer of security for cardholders, reducing chargeback risks and shifting liability away from your business. 🔹If you're already benefiting from 3-D Secure, paying extra for Stripe's Chargeback Protection might not be necessary and could inflate your costs without much added benefit. ⛔️ While Stripe Radar is good at stopping fraud, it's not foolproof. ⛔️ Legitimate transactions might get flagged or stopped, impacting your sales volume. ⛔️ Moreover, disputes will still happen, and you might end up in Visa and Mastercard Monitoring Programs. ✅ On the other hand, Merchanto guarantees alerts before a chargeback occurs, eliminating guesswork. ✅ With us, you can lower your chargeback rate and reduce dispute expenses, steering clear of monitoring programs and account blocks on Stripe. 💡CASE STUDY: One of our clients used to spend 💲4000 monthly on Stripe Radar but still faced chargebacks. Then, they switched it off and started to use Merchanto alerts only. As a result, their spending lowered to 💲1000 a month with NO chargebacks at all. ☝🏿Please note: Radar’s Early Fraud Warning notifications are just a suspicion from the card issuer that a charge MIGHT be fraudulent. 👉🏽 So, Radar might mark many transactions as a POTENTIAL fraud, but it doesn't make sense to refund all of them because many will not become chargebacks. ✔️At Merchanto we only alert for real chargebacks already at the pre-dispute stage.  We send you alerts about upcoming disputes only in case when a client has already contacted their bank, which means a dispute will arise. To learn more, don’t hesitate to fill in an application form on our website: 🌐Merchanto.org or contact our support team: 📬 support@merchanto.org _______ #StripeRadar #Stripe #FraudDetection #ChargebackProtection #3DSecure #BusinessSecurity #Alerts #Disputes #ReducingDisputes #MonitoringPrograms #CaseStudy #PreDisputeAlerts #Visa #MasterCard #AmericanExpress #Discover

🔎 How to Find a Card’s Issuing Bank? 👀💳 👉🏻 The "Bank Identification Number," also known as BIN code, is the first set of 4️⃣ to 6️⃣ numbers you see on a credit card. ✳️ This number helps recognize which bank or financial institution issued the card. The BIN on a credit card gives merchants more than just the bank's name. For instance, when customers type in their card details online, those first few numbers show the seller: 📲 The bank's name, address, and phone number where the money will go 🏦 The card brand (like Visa, Mastercard, American Express) 💳 What kind of card it is (debit, credit, prepaid) 💰 The card's level (like black, platinum, business) 🌎 If the bank is in the same country as where the transaction device is used 📍If the address given by the customer matches the one on record Ultimately, the BIN helps merchants accept various payment methods and makes processing faster. 🔹Here are some examples of how the BIN numbers look for popular card brands in the US: Visa: 4***** American Express (AMEX): 34**** or 37**** Diner’s Club: 36**** MasterCard: 51**** or 55**** Discover Card: 6011, 622126-622925, 644-649, 65 👋🏼If you found this post helpful, share it with your colleagues. #BankIdentificationNumber #BIN #CreditCard #PaymentProcessing #FinancialInstitutions #CardBrands #Visa #Mastercard #AmericanExpress #DiscoverCard #DebitCards #OnlineTransactions

💪🏻 Visa Rapid Dispute Resolution ✅ Visa and Merchanto have combined capabilities to deliver Rapid Dispute Resolution (RDR), a market-first, fully automated dispute management solution. 👉🏾 In collaboration with Visa, Merchanto has the ability to reach tremendous issuer coverage, quickly. 🌎 The Visa network connects to over 61 million seller locations globally and is the largest card brand network with thousands of issuers throughout the world, positioning Visa above competitors to take this technological leap forward. 💡Merchants can now adopt RDR as part of their dispute management strategy. This new option offers a logic-driven decision engine, governed by rules set by sellers to determine in which situation a dispute should be automatically resolved with a refund or submitted by the issuer. 🟡 Benefits: - Resolve pre-disputes, avoid chargebacks; - Automated resolution, no manual review needed; - Improved customer experience; - Keep dispute ratios low. 🔵 What you’ll get: - Issuer coverage in over 200 countries; - Reduced operational effort – no need to respond to RDR resolved pre-disputes; - Exclusion from ALL dispute ratio calculations. 📩 Contact us to learn how Rapid Dispute Resolution can make a difference for your business: 🌐 merchanto.org 📬 support@merchanto.org #DisputeResolution #DisputeManagement #RDR #VISA #RapidDisputeResolution #Chargebacks #ChargebackManagement #BusinessDevelopment #PSP #Payments #Issuers #Acquires