Following suit with its mission to “maximise business, reduce hassle,” European online payments solution, TrustPay, announced this week that it is ready to launch an auto-refund tool, a very exciting and valuable development for merchants.
Considered a logistical thorn in the sides of businesses and merchants, chargebacks are a big drawback to the convenience of card payments. Chargebacks occur when the merchants receive a report that a consumer’s payments aren’t authorized, legitimate, or are more than the amount they were quoted. Chargebacks are classified as one of two categories: fraud-related or non-fraud-related. Once a payment dispute is made in the consumer’s favor, the process of issuing a chargeback is commonly arduous and inconvenient for merchants.
Speaking on this, CEO of TrustPay David Rintel said, “Chargebacks are a huge and costly problem for merchants. The time it takes to receive notification of fraud and the resources needed to proactively refund customers (before a chargeback comes in) is unmanageable for most merchants. Our auto-refund tool removes these challenges - reducing chargeback rates and fees, without the merchant having to take any direct action themselves.”
The auto-refund tool has been designed specifically to tackle this problem and effectively enable merchants to reduce their chargeback burden. The tool works by proactively and automatically refunding transactions classified as confirmed fraud by the card scheme. As the acquirer, TrustPay receives the notifications at least one day in advance of the merchant, enabling action to be executed immediately. This process results in valuable time savings for merchants and makes redundant the need for consumers to instigate the chargeback process themselves.
This service release comes after quite a productive year for the payments company. In April of this year TrustPay, was quick to release payment links for brick-and-mortar merchants, jumping ahead of the pandemic to offer an efficient payments solution that removes in-person transactions for companies hardest hit by COVID-19. In June, TrustPay followed up with the release of a new identity verification process that offered merchants the utmost security and efficiency-led system of onboarding.
Rintel further shared that the pilot program revealed that the inclusion of TrustPay’s auto-refund tool saw an overall drop of 31% in chargeback rates that would eventually save merchants €60k in chargeback fees.
With the efficacy of the pilot program proven, TrustPay’s auto-refund tool is now available to TrustPay merchants across the EU.