TrustPay, a European provider of acquiring services, online payments solutions and innovative corporate accounts, has announced the availability of its new auto-refund tool.
Designed to help merchants reduce their chargeback burden, the solution has already delivered a 31% reduction in chargebacks for one merchant customer involved in the pilot programme.
David Rintel, CEO of TrustPay, commented “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 delivers these benefits by proactively and automatically refunding a transaction which has been confirmed as fraud by the card scheme. TrustPay, as the acquirer, receives these notifications at least a day earlier than the merchant, enabling fast action to be taken on day 1. This saves valuable time for merchants and negates the need for the consumer to initiates a chargeback.
“Looking at one particular merchant in the pilot programme, we saw their chargebacks rates drop 1.54% between September 2019 and September 2020, purely from the addition of the auto-refund tool” explains Rintel. “This equated to a 31% overall reduction in chargebacks rates, saving the merchant €60k in chargeback fees alone.”
Following the success of the pilot programme, the TrustPay auto-refund tool is now available to all TrustPay merchants across Europe.