Merchants using VeriFi Inc.’s charge-back re-presentment service no longer have to use the Los Angeles-based company’s online payment gateway. Instead, merchants now may use any online payment gateway, and they do not have to switch payment processors, Jeff Sawitke, VeriFi chief product officer, tells PaymentsSource.
The previous limitation meant some merchants that would have wanted to use the VeriFi service chose not to because of the inconvenience of migrating their payment processing service, he says.
“We are acquirer-independent,” Sawitke says. “Merchants are already significantly invested into the integration with their acquirers and don’t want to walk away from that. We can offer the services to a broader audience of merchants.”
Merchants use charge-back re-presentment services to reduce their number of charge-backs, and the resulting loss of revenue. For example, a card-not-present merchant with more than 100 or 200 charge-backs per month might consider using a re-presentment service, Sawitke says.
Charge-back re-presentment manages the process of reviewing and analyzing a transaction against existing consumer data, such as card brand, card type, product purchased and Internet protocol address. VeriFi says it can use that information to dispute a charge-back and potentially win back the merchant’s revenue.
The cost of VeriFi’s charge-back re-presentment service varies, based on the number of charge-backs processed during the month or on the amount of revenue recovered.
Even with the service’s fees, merchants should save more money than they spend, Sawitke says.
“We’re seeing many merchants now taking a harder look at the costs they’re seeing on charge-backs and the revenue loss they’re experiencing,” Sawitke says.
The cost of acquiring a transaction for merchants is not getting cheaper, which compels them to look for ways to retain revenue, Sawitke say. If a charge-back is successful, the merchant not only loses revenue from the failed sale but also may be out the cost of the product, he notes.
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