SafeCharge Launches New Risk-Management Feature

TORTOLA, British Virgin Islands - Internet payment service provider SafeCharge has launched a new callback feature for retrievals and chargebacks. The company developed the callback feature early this year specifically to minimize chargebacks from online sales.

Websites frequently use IPSPs to reduce chargebacks; unfortunately, because most IPSPs use "scrubbing," some valid transactions mistakenly are deemed "suspicious" and are denied, potentially losing sales, the company said. To combat this, SafeCharge collaborated with programmers to develop what the company calls a state-of-the-art system designed to protect merchants from chargebacks without "scrubbing" their transactions at the cost of potential sales.

The company focused on the retrieval phase, a critical stage during which an end-user simply inquires about the sale before making an official chargeback. SafeCharge immediately is notified by the bank when a customer makes that retrieval. That permits SafeCharge to view the specific transaction and find out why it was questioned by the consumer. A consumer who is questioning a transaction often will cancel it or charge it back, the company stated. To prevent that from happening, SafeCharge conveys the retrieval information instantaneously to the merchant, through the new callback feature, and the information then is integrated into the merchant's own administrative back-end. Once the merchant becomes aware of the recovery, the company has enough time to settle the issue directly with the end-user, before the official chargeback even occurs.

"In the event that the end-user is relentless and simply determined to make the chargeback, at least it will not have the detrimental power of a sneak attack, and the merchant will be well prepared," said Galit Shani-Michel, head of SafeCharge's risk management department. "That chargeback will be immediately posted in the merchant's back-office so that the merchant can instantly block the problematic user and terminate any pending activity with him to avoid more damage."

SafeCharge is a PCI-certified payment service provider that integrates high-end payment-gateway services with powerful online fraud-prevention solutions.