How To Manage Chargebacks for High Risk Accounts

How Chargebacks Affect your High Risk Merchant Account

High-risk merchant accounts are expected to handle a higher rate of chargebacks than low risk merchant accounts. This is one of the main reasons that high-risk accounts are subject to large monthly reserve rates, as well as higher initial fees. Unfortunately, there isn’t a surefire way to reduce chargebacks for every business, but steps to take to lower the amount processed each month. From prevention to management to disputing claims, try these steps to help lower chargebacks for your business.


The first way to manage the number of chargebacks a company or business receives is to try and prevent them. The first way is to have a clear merchant name that is the same as that of your website, not your legal name or other unclear representation. Second, provide a clear, strict guideline for processing requirements, and institute the need for purchase validation, such as a digital signature or other requirement. Sometimes, having great customer service can be enough to stop a chargeback and let you speak to the disgruntled customer personally. At the end of the day, it’s important to get everything in writing, whether that’s a digital signature, having an account with the company’s website, or another form of verification.


Despite your best attempts to manage chargebacks, there will always be some that are legitimate. Having a good system to manage these payment issues will help your business run smoothly and lose less money. Some ways to do this are to have a clear return/refund policy that leaves no room for misinterpretation, require the use of the credit/debit card’s security code on the back of the card, and having a responsive, easily reachable customer service team. Other options for managing chargebacks include monitoring cancelled subscriptions and using delivery services that provide proof of delivery.

Disputing Claims

Just because a customer initiates the process of a chargeback, doesn’t necessarily mean they will win the claim. There are a number of reasons for a customer to issue a chargeback, and some may be fraudulent. Disputing a claim is a good way to prevent a chargeback, even though it may not always go in the favor of the business in question. The first step is reaching out to the customer to see if the issue can be solved, as it could all be because of a misunderstanding between both parties. If the matter cannot be resolved directly, having clear records of the purchase and payment will help the business to pursue legal action if necessary.

Manage Chargebacks with Total-Apps

A leader in advanced payment processing solutions, Total-Apps can not only help you reduce fraud risks, but manage chargebacks for your business. Total-Apps develops and implements customized processing systems based on a specific merchant’s requirements, which can save a company’s accounting department time and maximize profits.

Contact Total-Apps today to get your chargebacks under control.