PASADENA, Calif. — 2000Charge.com reports that chargeback free solutions are becoming more popular as merchants are looking to minimize their risk.
"We have found that new clients want payment solutions that do not expose them to financial losses due to chargebacks, while existing clients are seeking methods to lessen or totally eliminate chargebacks," the company said. "It is not a surprise that merchants are attracted to chargeback free alternative payment solutions, as it is not only the inconveniences that come with chargebacks, but also the additional fees."
Unlike chargeback free solutions, traditional billing solutions often require that reserves are held, sometimes up to 10 percent or more of sales, which can tie up a significant amount of cash that the business otherwise could have used for cash flow purposes.
2000Charge further explained that managing and processing chargebacks or any type of reversal can be expensive and time consuming.
"Often fees are also imposed for non-sufficient funds or invalid transactions and with a chargeback the merchant may have to post funds equal to the transaction amount until the disputed transaction has been resolved, often after a lengthy investigation," the company said. "Unfortunately, more than often the client is king and the merchant loses out.
"In addition to paying penalty fees, merchants also run the risk of losing their merchandise for non-payment. Especially merchants that have high-ticket items or merchants that physically ship product do not wish to run the risk of loss and are adding our risk free solutions."
2000Charge said that it offers an array of chargeback free billing solutions that guarantees the merchant their funds with no reserve requirements.