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.