Our Lawyers Can Help if Your Business is Being Penalized for Excessive Chargebacks

Chargebacks cost merchants and credit card companies tens of billions of dollars annually. As a result, credit card companies take various steps to prevent chargebacks, including penalizing merchants that have above-average chargeback rates.

But, the simple fact that a business has a high chargeback rate doesn’t necessarily mean that the business is doing anything wrong. Chargeback fraud (i.e., consumers claiming refunds for items they keep) is a major issue as well, and it is particularly prevalent in certain industries.

Even so, the credit card companies often take a one-size-fits-all approach to preventing chargebacks at the merchant level. If merchants’ chargebacks exceed a certain percentage of their total processed transactions, the credit card companies will label them as having “excessive chargebacks.” This label can have significant (and costly) consequences—and it can be difficult to remove.

We Help Merchants That Are Dealing with Excessive Chargebacks

At Tamou Law Group, we help merchants that are dealing with excessive chargebacks. If your business is facing additional fees, periodic reviews, or other penalties or restrictions from Visa, Mastercard, or any other credit card company, we can provide assistance with matters including:

  • Evaluating your business’s marketing, sales, and payment processing practices to determine why you are dealing with excessive chargebacks;
  • Examining individual chargebacks for evidence of fraudulent refund claims and other forms of consumer chargeback fraud;
  • Helping your business resolve excessive chargeback issues with the credit card companies, including seeking removal from the Visa Dispute Monitoring Program (VDMP) or Mastercard Excessive Chargeback Merchant Program (ECM);
  • Representing your business during periodic reviews and demonstrating compliance with the credit card companies’ chargeback policies and procedures;
  • Disputing punitive fees and other penalties imposed due to excessive chargebacks;
  • Recovering seized merchant account funds resulting from excessive chargebacks; and,
  • Getting your business off of the Terminated Merchant File (TMF) or Merchant Alert To Control High-Risk (MATCH) list.

Dealing with excessive chargebacks (and the consequences that result from excessive chargebacks) often requires a multi-faceted approach. For example, businesses may need to reevaluate their payment processing practices and terms of sale while also working with Visa or Mastercard to demonstrate their good-faith efforts to prevent excessive chargebacks going forward. With our experience handling these situations, we can help our clients work through these steps quickly; and, as a result, we are able to help our clients minimize the negative consequences of having short-term high chargeback rates.

In addition to helping our clients resolve legitimate chargeback issues, we also help our clients take steps to address and prevent chargeback fraud. We help our clients deploy various tactics for preventing fraud and abuse, and we represent our clients in chargeback disputes with the credit card companies when warranted.

Inquire About Our Excessive Chargeback Representation

If you would like to know more about how we help businesses nationwide deal with excessive chargeback issues, we invite you to get in touch. To speak with a lawyer at Tamou Law Group in confidence, please call 602-618-1385 or request an appointment online today.