End-to-End Solutions: A Win for Issuers and Merchants


Simplifying and streamlining are key principles in modern business. The more streamlined the business, the easier it is to reduce costs, maximize profits, and see how resources are being optimally targeted or wasted. This holds true for both merchants and issuers. For example, a simplified end-to-end solution would allow all parties involved in the chargeback process to work together effectively and efficiently. Time would be saved, resources maximized, and chargeback fees would be kept under control.
When dealing with transaction disputes, merchants and issuers have depended on the same solutions and communication mechanisms they’ve always used. The prospect of changing major software solutions or operational procedures could result in costly problems and downtime. However, with proper planning and expert advice and support from proven payment solution experts, this downtime is preventable.
Implementing an end-to-end solution—from fraud prevention to chargeback resolution—can help merchants and issuers reduce the resource drain, improve communication, and alleviate the frustration that come with merchants depending on a complicated multiple-acquirer solution. For merchants, most importantly, the benefits of an end-to-end solution can translate into reduced chargeback fees and increased profits.
Chargeback Fees: The Issuer’s Perspective 
Just as you’re dealing with the costs of chargebacks, issuing banks are also beset with addressing this time-consuming problem. For the issuer, this results in increased complexity, operational costs, and the fallout that results from an inconsistent customer experience.

  • False positives:  When transactions are mislabeled as disputes, the chargeback process is slowed and real disputes end up costing more.
  • Overflowing pend queues:  Increased disputes means additional trained personnel are required to manage queues, lowering productivity and increasing delays.
  • Compliance costs:  Management and overhead of the many chargeback reason codes for each credit card brand adds up in technology and staffing costs.
  • Increased customer complaints:  Delays in resolving disputes results in miscommunication, multiple requests for assistance by the cardholder, and overall frustration.

These factors all add up to one thingincreased costs for the merchant. Issuing banks must recoup the costs of managing disputes, chargebacks, and customer complaintsthe trickle-down target being you, the merchant.
Chargeback Fees: The Merchant’s Perspective
As a merchant, you’re caught in the middle, trying to manage pressure from your customers and issuers. Everyone wants the chargeback process handled as quickly as possible, but with every miscommunication and delay in response, the chargeback fees and costs can increase.
Implementing an end-to-end solution enables you to avoid costly chargebacks and resource-draining issues:

  • False positives:  Overly rigid rules engines result in false positives, causing time and money to be spent on a manual review process.
  • Decreased efficiency:  Manual processing and multiple-acquirer solution overhead requires staff, time, and expense to deal with processing, reconciliation, and coordination with multiple issuing banks.
  • Loss of goods or services:  Merchants lose the products and/or services and well-earned profits associated with a chargeback.
  • Excessive refunding:  The merchant issues a refund, but this may not stop the chargeback. Blind spots occur between issuer and merchant communication.
  • Penalties and fines:  Issuers charge fees to merchants when a chargeback is issued. When the chargeback-to-sales ratio exceeds a set limit, these fees drastically increase. Passing on these costs to the consumer can severely affect good customer relations.

This all circles back to one vital need: improved communication. With less time being wasted on convoluted processes, the more everyone can focus on the problem at hand—resolving the customer’s dispute and preventing fraud.
Too many costly errors occur when there are delays, overburdened systems, inefficient protocols, and a lack of staff and knowledge. Issuers deal with these costs through increased chargeback fees charged to the merchant. Merchants deal with these costs with increased prices. The customer gets frustrated with increasing prices and poor customer service and may eventually direct their business to your competitor.
Merchant-Issuer Collaboration
With a simple end-to-end solution like Verifi’s CDRN, merchants and issuers can work together to shorten and mitigate the chargeback process. Issuers can notify merchants of pending disputes, enabling the merchant to solve the dispute before it escalates to a chargeback. This allows issuers to stop spending resources on chargeback management and focus on their core business. The customer is satisfied because their complaint is dealt with quickly.
Contact us to learn how easy it is to implement an end-to-end solution that bridges the gap between merchants and issuers. Put your trust in the Verifi experts and get back to focusing on your core business.