In today’s high-speed world of eCommerce, every second counts. This is doubly true when it comes to payments. If there are any changes in transaction behaviours – say, a drop in approval rates – then the result is pretty straightforward: your customers can’t pay. Every moment that a merchant can’t take money from a willing, eager customer is a dent in their bottom line – so the sooner merchants can identify the issue, the sooner they can fix it.

 

The challenge with chargebacks is similar. Disputing chargeback claims costs merchants a lot of time and resources – time that could be better spent doing something more profitable for the business. But, if merchants don’t take the chargeback process seriously, they run the risk of losing revenue unfairly. 

Innovative use of Machine Learning (ML), Artificial Intelligence (AI) and Robotic Process Automation (RPA) can really make a difference for merchants dealing with these issues. Not only can clever application of these technologies save time, it can also help them recoup potential losses.

 

Spotting patterns in transaction behaviour

Declined transactions obviously affect sales figures. But it’s not just revenue that’s at stake with a decline – consumer dissatisfaction with a poor payment experience can also hit a brand hard. It’s critical to be able to rapidly detect and correct the issue, to prevent countless lost sales. This is especially true for small merchants, who usually don’t have their own monitoring tools. 

The challenge is that a merchant’s transaction datasets will be massive, covering huge numbers of transactions, possibly over many different countries. Trying to spot patterns is enough to make a mere mortal’s brain explode – it would be like trying to understand the lines of code in The Matrix! 

However, use of AI and ML enables merchants to spot correlations and underlying patterns in these reams and reams of data really quickly; if there is an increase in declines, this pattern of behaviour will be picked up by these systems. Most important of all, these things are spotted in real time, so merchants can get an immediate heads-up if something business critical needs changing. This can make all the difference between a small short-term loss and lingering, recurring losses.

 

Making chargebacks less time consuming

Chargebacks – when, via their bank, a customer demands that a merchant repay them for a fraudulent or disputed transaction – have become a real headache for merchants in recent years. The 45-day period that merchants used to have to address a chargeback demand or to dispute a claim made against them has been reduced to 20 days, with extra fees payable by merchants who don’t respond in time.

This squeeze on response time places a huge burden on merchants, especially when you consider the time-intensive nature of collecting evidence to support a dispute, and the administration time required to manage the whole process. 

In the face of this, automatic representment services can deliver real value to merchants by automating parts of this complex, time-consuming process, and making it less resource intensive for merchants to challenge chargeback claims, plead their case and reclaim any money they might have lost. It also reduces errors, meaning less lost revenue for merchants.

A good chargeback management system will also provide reporting tools that deliver instant notifications and alerts around chargeback claims and representments, which help merchants react rapidly to any changes in their situation.

 

Making your life easier

At Credorax, our vision is to use AI and ML technology to make life simpler for merchants. Whether it’s rapidly addressing an approval rate drop so you can process more customer transactions, or automating the chargeback process to free up resources, we’re dedicated to using these innovative solutions to your benefit. 

If you’re dealing with some of the challenges we’ve been talking about, we can help! 

contact us

Or email us at: grow@credorax.com to find out how Credorax can help.