The Fraud Practice
encourages cooperation between card issuers and merchants via issuer alerts or post-billing chargeback notifications. Customers often bypass merchants and directly contact issuing banks.
If merchants work with a third party chargeback resolution service, the bank will notify the merchant of impending chargebacks
due to suspected fraud or from a cardholder initiated dispute, allowing the merchant to address the issue before it becomes a
chargeback
.
Preventing chargebacks altogether is nearly impossible
. Yet, many customers initiate chargebacks out of convenience. These sorts of chargebacks are avoidable through issuer keyword alerts. When issuers and merchants work together, everyone wins.