Chargebacks cost merchants an average of 0.56% of their total transactions —that’s thousands of dollars of revenue or more lost to customers requesting refunds through their banks or credit cards due to criminal or friendly fraud. The best chargeback protection services can save you from these transactions and fight chargebacks when, or even before, they happen.
The best way to protect yourself from chargebacks is to prevent them . And if you’re just starting to accept payments , you could choose a merchant account that comes with built-in merchant chargeback protection to save you time and money.
Here are some popular processors that come with chargeback protection for merchants:
PayPal : Popular for online transactionsSquare : Merchant services for small brick-and-mortar and/or online businessesStripe : Top payment processor for online startupsShopify : Popular ecommerce platform with built-in paymentsBlueSnap : Global payment processor for online B2B transactionsBolt : One-click checkout for online businessesChargeback Protection Services Compared *Guarantees refer to reimbursement for chargebacks or refunds on service if a fraudulent chargeback gets through and/or is not successfully defended.
Chargeback Lingo False decline: False declines happen when a transaction is mistakenly flagged as fraudulent and denied. This can have serious consequences on customer satisfaction, return visits, and your reputation.
Presentment vs representment: Presentment is the process of submitting a transaction to receive the funds from the customer’s bank. When a chargeback is filed, this process is reversed. Representment is the process of resubmitting the presentment with evidence to prove the transaction is valid.
Friendly fraud: This happens when a customer disputes a legitimate charge due to confusion or an attempt to get their money back. Friendly fraud chargebacks can be caused by customers not recognizing the charge or merchant name, family members making purchases unbeknownst to the cardholder, or customers wanting an illegitimate refund.
Kount: Best Overall Chargeback Protection Services
Sophisticated automation and AI tools Works with merchants already in an excessive chargeback program Highly rated by real-world users Personalized services Essentials plan has no monthly minimums or contracts
$1,000 monthly minimum for advanced plan Users say some of the terminologies are confusing and processes are complex Essentials plan only for Shopify and other ecommerce platforms Kount earned top billing on our list of the best chargeback protection services because it has several programs that attack chargebacks on multiple levels: preventing chargebacks, stopping malicious logins, and analyzing chargebacks for patterns. It offers digital protection for over 9,000 businesses, from gas and gaming to finance and food. Kount even prevents false declines and fraudulent transactions. Its Essentials Plan for ecommerce platforms is inexpensive with no monthly minimums.
Since Our Last Update: Kount has changed its plans to include ecommerce. It offers automatic chargeback representment, although it still works with Midigator.
Pricing Essentials Plan (for select ecommerce platforms): Starting at 7 cents per transaction, no minimums, no contractsAdvanced Plan: Starting at $1,000 per monthEnterprise Plan: Contact for pricing, volume discountsCustom Plan: Contact for pricing, feature-based pricingKey Features AI-driven fraud detection that looks at billions of data points Protection against malicious logins Data storage and analysis to determine problem areas resulting in potential chargebacks Flag known customers to prevent false declines Rules setting for automated alerts Near Real-Time (NRT) Rapid Dispute Resolution (RDR) reporting Integrations Partners with payment providers such as Chase, Sage, Braintree, and BlueSnap Integrates with ecommerce platforms like Shopify and Salesforce Commerce Cloud Offers optional third-party subscriptions to data from Ekata and others Customer Support Phone support Chat support available by bot or human Email support Online help center Other tools like white papers, webinars, videos, and both live and virtual events Kount earned the highest score on our evaluation: 4.71 out of 5. It would have scored higher if the advanced plan didn’t have a contract and minimum monthly spend requirements. Thus, it’s best for well-established businesses losing well over $1,000 monthly due to chargebacks. However, it is not the only chargeback management service that requires a minimum—Signifyd has an even higher monthly minimum.
Strengths Fraud and pre-transaction chargeback protection: Only Kount and Signifyd have a perfect score for tools that prevent fraud and chargebacks even before the transaction is approved. It has artificial intelligence/machine learning (AI/ML) analysis, 3D Secure, fraud, scoring, and false decline prevention. It even lets you build your own fraud detection rules.Personalized chargeback prevention services: Like ClearSale, Kount provides live, personalized evaluation services for companies that have complex business issues, are experiencing sophisticated fraud attacks, or need extra guidance. It also offers an in-depth analysis of business and operational policies to minimize fraud risk.Great results, guaranteed: It offers a chargeback guarantee with 100% coverage of eligible fraud-related chargebacks or a KPI-performance guarantee. Customers report an average 83% reduction in manual reviews, a 70% reduction in false positives, and a 99% reduction in chargebacks.Weaknesses Monthly minimum: Unlike most chargeback management services on our list, Kount expects you to pay at least $1,000 a month (Signifyd is $1,500 a month). For chargeback protection with no monthly minimum, consider Verifi, ClearSale, Chargebacks911, Chargeback Gurus, and ChargebackHelp. (It has no minimum for its Essentials plan, which is limited to ecommerce.)Despite complaints about complex processes, it had the second-highest user approval rate: 4.74 out of 5 stars, averaged over multiple third-party user review sites. Here are some of the most common comments:
Can do just about all you need to from the dashboard Has saved time, money Software can be slow because of data crunching High learning curve
Chargeback Gurus: Best for Chargeback Analysis
Uses a chargeback predictive engine called ARI to analyze transactions Automated scans of 40+ data points to identify vulnerabilities Chargeback representment Get started in 3 business days
Lacks customer reviews No pricing information online Can’t build your own rules Chargeback Gurus offers chargeback alerts and in-depth analysis of chargebacks with over 30 standard reports, making it an excellent choice for those wanting to get to the root of their chargeback issue without paying extra for a third-party analysis.
Its chargeback predictive engine, called ARI, analyzes transactions based on order, transaction, and fraud data to detect those likely to become chargebacks and allows you to either deny the transaction, opt for extended verification, or approve the order.
Its Root-Cause Analyzer lets you uncover vulnerabilities to decrease potential chargebacks and improve customer satisfaction. It also has chargeback representment for chargebacks that get through.
Pricing Key Features Uses Verifi, Ethoca, and 3D Secure technology for validating transactions Has chargeback alerts, so you can respond before fees are applied Can integrate with Visa Merchant Purchase Inquiry (VMPI) engine Chargeback representment Chargeback Predictive Engine called ARI Root-Cause Analyzer lets you identify vulnerabilities based on 40+ data points Integrations Offers 91 integrations for payment processors, gateways, CRM, and ecommerce like Zendesk, Wells Fargo, Paysafe, HelloSign, FlexPay, Ethoca, Authorize.net, and Converge Pay Customer Support Phone support Email and Skype support FAQs, e-books, and guides Chargeback Gurus also offers a satisfying spectrum of chargeback and dispute tools, is easy to use, and scored well for pricing. It claims a 50% prevention and a 70% win against chargebacks. Moreover, if you do not see your chargebacks declining and your income increasing, you can quit and get your money back.
With a 4.28 out of 5 on our rubric, Chargeback Gurus fell behind Kount because it doesn’t let you build fraud detection rules, and it had a lower overall score for ease of use. The lack of user reviews on third-party sites hurt its score as well.
Strengths Reports: While all the chargeback prevention companies provide some reports, Chargeback Gurus offers over 30. Its Root-Cause Analyzer looks at over 40 data points to help you identify your vulnerabilities. It gives you an in-depth and personalized analysis of your weaknesses.Chargeback Predictive Engine: ARI analyzes transactions using order, transaction, and fraud data to develop a chargeback predictive score to help you decide on your next steps.Weaknesses Individual service fees: The individual fees for the different services offered by Chargeback Gurus effectively makes each one available with an extra add-on fee.Does not let you manually set rules: While its analysis can show you reasons for chargebacks, it does not let you manually set screening rules. (The screens are automatic.) Consider Kount, Signifyd, Sift, or Verifi if you want this particular tool.We did not find any user reviews for Chargeback Gurus on third-party review sites like Capterra or G2. Guru’s website lists success stories that say users have saved hundreds of thousands of dollars and recovered up to 70% of chargebacks.
Signifyd: Best for Ecommerce With Physical Products
Transaction-to-resolution protection Provides merchant insights for future prevention Protect accounts, manage abuse beyond payment fraud Prevents false declines 100% reimbursement for chargeback fees
$1,500 monthly minimum Support only through the contact form No chargeback deflection Signifyd provides comprehensive chargeback protection for merchants in ecommerce. It can identify anomalies like account takeovers, unauthorized resellers, and promotions abuse. You can create your own custom logic and automated responses to these attacks. Insights reporting analyzes your chargebacks to uncover trends and help you prevent friendly chargebacks.
While others may refund shipping fees if their software lets a fraudulent purchase pass, Signifyd reimburses plus shipping and other fees associated with the purchase, making it the best choice for online retailers of physical goods.
Pricing Custom pricing; call for a quote. Minimum $1,500. Key Features Adaptive AI/ML that delivers actionable insights IDs multiple fraud anomalies automatically Guaranteed protection of approved orders Customer abuse scores Unauthorized reseller protection Automated chargeback recovery Integrations Integrates with ecommerce platforms like BigCommerce, Magento, Salesforce, Commerce Cloud, and Shopify Also works with financial institutions like Worldpay and Authorize.net, plus developers like Tomorrow, Valtech, and Absolute Web Custom API Customer Support Contact form Support portal We gave Signifyd 4.27 out of 5 in our evaluation, with a perfect expert score for quality of features and effectiveness and only losing points on ease of use because it lacked personal recommendations (only a few, like Kount, Sift, and Chargeback Gurus do this). It can provide analyses that you can act upon, however, and its pre-transaction charge prevention offerings are among the strongest.
Signifyd is available in over 100 countries, which is a much higher number than most other chargeback protection companies (for reference, Visa’s Verifi works with just over 40). It has the best guarantee of all the best chargeback software we’ve seen, paying not only chargeback fees but shipping and other fees of products sent resulting from a fraudulent purchase the system approved. However, it does not guarantee the delivery of digital items.
Strengths Additional fraud tools: Like Sift, Signifyd can provide more than chargeback protection. Its commerce protection platform includes account abuse prevention to protect you from customers taking advantage of businesses through coupon misuse or item-not-received complaints. It also offers tools to prevent return abuse.3D Secure: Signifyd uses 3D Secure as part of its verification procedures. Only Kount and Chargeback Gurus incorporate this tool; the rest don’t mention it or say they work alongside other tools that use it. All transactions in the EU must be 3D Secure, but not every chargeback protector uses it for data.Weaknesses Minimum $1,500 monthly spend: Its biggest hit came in pricing, requiring a $1,500 monthly spend and 30 days’ notice to cancel. This means a merchant will pay a minimum of $1,500 per month regardless of their actual transaction volume for the month. It is the most expensive on our list; most do not have a minimum at all. This makes Signifyd suitable only for large-volume merchants.No phone support. The only way to get customer support from Signifyd is through an online contact form. Although many users rarely need to contact support, having customer support available via phone, even on a limited basis, can greatly help when issues arise.Real-world users give this chargeback protection company 4.27 out of 5 stars; it also has the most reviews of those on our list. Comments included:
Customers appreciate that they refund shipping fees Great time saver Nice to have the human touch as well as AI High cost is an issue No “white list” or “black list” capability
Verifi: Best for Visa Disputes
Works with 40+ countries Rapid Dispute Resolution (RDR) automates resolutions and reduces chargebacks Chargeback representation and management Works with other chargeback prevention companies
No chargeback guarantee Doesn’t prevent fraudulent transactions Does not prevent false declines Verifi (owned by Visa) works with both sellers and banks or payment processors that issue chargeback notifications. When you have Verifi, the issuing authority can access transaction details to validate sales—a common cause of chargebacks. It can also give customers direct access to the details through the bank’s online or mobile applications.
This is one reason many chargeback apps and payment processors integrate with Verifi. If it isn’t sufficient on its own, it’s a selling point when looking at other services.
Pricing Key Features Data sharing with issuer call center or cardholder self-service Automated responses to disputes before charges are levied using seller-defined rules Financial resolution (refund) capability through Visa Dispute processing Reporting dashboard with KPIs and performance data Integrations Integrates with payment processing services like Bank of America, Chase, BlueSnap, Vantiv, and Merchant Solutions Integrates with other chargeback management services Customer Support 24/7 phone support Live chat Contact form Online knowledge base Verifi earned a 3.88 out of 5 in our evaluation, with good but not outstanding scores. It lost points because it doesn’t protect against false declines or pay chargeback fees, and its overall chargeback decrease is slightly below the best on our list. However, it offers good reports and excellent deflection services.
It helps prevent chargebacks by sending fraud notifications as soon as they are confirmed by the bank or card authority. Verifi can also send notices of stop payments, so you can cancel orders or subscriptions accordingly. It reports lost or stolen Visa cards, so you can block them. Overall, it claims businesses will experience up to a 42% reduction in dispute rates.
About half the services on our list offer full management and representation when chargebacks occur. With Verifi’s program, you get a reporting dashboard with KPIs and performance and business summaries. This lets you uncover weaknesses leading to chargebacks and helps track Verifi’s success in disputing chargebacks for you.
Strengths Link to Visa: While some services, like Chargebacks911, link with Verifi or the Visa Merchant Purchase Inquiry program, Verifi offers direct access to Visa’s alerts and information without paying extra.Transaction details: Access to detailed transaction data can help prevent friendly fraud by consumers who don’t recognize or remember a sale. Verifi gets this directly from Visa, and you won’t find this tool with ClearSale, Chargeback Gurus, and Midigator.Weaknesses No false decline prevention: Almost as important as preventing fraudulent transactions is avoiding false declines. Consider ClearSale, Sift, Kount, and Signifyd.No chargeback reimbursement: Unlike ClearSale, Kount, Signifyd, and Chargeback Gurus, Verifi does not reimburse you for chargebacks, even those that slip through the system.We only found two user reviews for Verifi, and on one site, the reviews were obviously false or misplaced. The score averaged 3.75 out of 5, but given the quality of the reviews, we would not recommend making a decision based on it. In fact, in our rubric, we gave a higher score based on its reputation as a Visa product and use by other chargeback protection companies.
Sift: Best for Friendly Fraud
AI-powered chargeback response generator Tied to bank rules for formatting and evidence requirements Fraud prevention tools available False decline prevention tools
No guarantee Does not use 3D Secure No chargeback representment Contract terms, minimum fees Sift Dispute Management provides automatic sharing of transaction data with both customers and banks to identify transactions. It can use that same data to populate a detailed response using an extensive rules and regulations database, determining the information and formatting that meets requirements and putting forth the best argument. It then submits the response automatically.
This automated evidence compilation makes Sift an excellent option for combating friendly fraud with little effort. Sift can spot issues that lead to chargeback requests, allowing you to prevent future issues. It also provides real-time overviews and advanced reports for deeper examination.
Pricing Call for quote; unspecified minimum fees May charge 1% interest for unpaid fees Contract required; automatic renewal; 60 day’s notice to terminate Key Features In the News: In November 2023, Sift launched its Fraud Industry Benchmarking Resource (FIBR) , a free online tool that provides key fraud metrics across industries, geographies, and time. Fraud and risk professionals can use the tool to benchmark their business’s payment fraud attack rates, fraudulent chargeback rates, and manual review rates against aggregated industry averages over time.
Account analysis Enrollment in Visa Merchant Purchase Inquiry AI-powered automated responses to chargeback alerts Compiles evidence to accompany response letter Add-ons for account defense, fraud prevention, protection against malicious content, and more Integrations Integrates with most payment technologies including, PayPal, Stripe, Vantiv, Authorize.net, and Worldpay Works with Shopify, Magento, WooCommerce, and PrestaShop Offers an API for integrating into other software solutions Integrates with Verifi and Ethoca for card processing information Customer Support Variety of self-serve support options such as response templates, a knowledge base, ebooks, guides, videos, and reason codes Email support Sift fell in ranking, with a new score of 3.86 because its pricing score went down. Sift has a contract with strict terms and minimum fees, although you need to call for a quote. Nonetheless, it has excellent chargeback prevention and resolution tools but lost points because it lacks representment and does not repay chargeback fees. Nonetheless, it is easy to use, has a real-world user rating of 4.58 out of 5 (averaged over multiple review sites), and is highly effective.
Strengths More payment protection tools: Sift offers robust fraud prevention tools to stop bad transactions before they happen. (About half the services on our list, like Chargebacks911 and Midigator, specialize in reacting after a chargeback occurs.) One callout example is creating your own fraud rules for any known red flags. Many on our list don’t do this.Protect against false positives: Sift has an “Insult Monitor” that flags potential false positives, so you can manually approve them to prevent denying a legitimate customer a sale. Many chargeback protectors, including Verifi, lack this function.White list: You can unblock trusted customers so that they are approved every time. Only a few chargeback management services do this.Weaknesses No chargeback representment: Sift provides the tools and information to handle the issue but doesn’t have experts who handle the chargeback process for you. If you want this time-saving feature, check out Signifyd, ChargebackHelp, Chargebacks911, Chargeback Gurus, and Verifi.No guarantee: It does not refund fees for chargebacks it missed (ClearSale and Kount do).Contract terms: You will need to sign a long-term contract with Sift, which their terms say renews annually and requires 60 day’s notice to leave. Further, they reserve the right to charge 1% interest on any fees not paid on time. These are the strictest terms we’ve found.Real-world users on the third-party review sites Capterra, G2, and Trustradius, give Sift an average of 4.58 out of 5 stars. Here’s what they noted
Comprehensive Customizable Good customer support team Steep learning curve
Disputifier: Best for ISOs, Agents, and Digital Ecommerce
Has resale services for agents and ISOs Finds lost orders to reduce unreceived chargebacks Customizable chargeback responses 500% ROI guaranteed Transparent pricing
Does not pay chargeback fees for lost cases Can’t set own detection rules Does not use 3D Secure Disputifier impressed us with its full range of services for ecommerce users. Of special note is the lost shipment chargeback prevention; Disputifier will actually find lost packages and let consumers know the shipping status to prevent these chargeback requests. It also has fraud scanning, alerts, and strong chargeback disputes. It offers a la carte pricing with fees listed on its website.
It stands out in that services that work with merchants can resell Disputifier’s services under their own brand. This makes it a good choice for ISO, payment facilitators (PayFacs), or agents who want to add value to their packages or start another revenue stream.
Pricing Disputifier is the only one of the chargeback prevention companies on our list that posted all its pricing on its website. You pay for the services you want.
Pay As You Go: Pay for wins only; 500% ROI guaranteedMonth-to-month: 20% of recovered revenueAnnual: 12% of recovered revenue (Note: payment is in advance based on previous year’s unsolved chargebacks)Prevention: 5 cents per orderAlerts: Custom pricingResellers: Set your own price for your customersKey Features Whitelabel functionality for resellers 500% ROI guarantee, defined by recovered revenue + (minutes saved x .5) / cost Automatic chargeback alerts Partnered with Verifi and Ethoca Prevents chargebacks due to unreceived orders AI-powered fraud scanning Unlike Signifyd, it works with digital products, too Integrations Works with Shopify, Checkout Champ, OrderLogix, or Sticky Building a universal CRM portal (in beta) Integrates with every payment processor for customized chargeback disputes Customer Support Live chat Email No online help files With 3.83 out of 5, this newcomer to our list earns a strong spot in part because it’s the only one to have a perfect score for pricing. However, its chargeback tools are excellent, losing points only because they cost extra. It doesn’t have as many chargeback prevention features as our higher-ranking products, however.
Like Signifyd, Disputifier provides chargeback protection for merchants in ecommerce, including tools for dealing with lost shipments; however, it will work with digital products. It’s also unique in that it lets you resell its services under your own label. Finally, it charges only by wins, and if you are not seeing a 500% return on your investment, it stops charging you until you achieve 500% ROI.
Strengths Automated customized responses: Each response uses hundreds of data points and considers the financial institution when crafting the most effective reply. It not only works for physical products, but also digital, including subscriptions. Disputifier consistently uses A/B testing of responses to improve their win rate. They say they increase wins by 67% on average.Order Not Received Prevention: By tracking physical orders and sharing the information with your customers, Disputifier can cut order unreceived disputes by up to 80%.White-label resells: Perfect for ISOs, agents, and PayFacs, Disputifier offers all its tools for resale. You can label them with our own brand, self-onboard and manage your merchants, embed Disputifier into your own portal, and keep all the markup. Disputifier also has a generous referral program.Weaknesses No manual control: Disputifier is 100% automated, which makes it easy for you, but does not allow you to whitelist customers, set your own fraud prevention rules, or add your own arguments to chargeback disputes.Not for physical stores: If you have a brick-and-mortar business, most of the others on our list (except Signifyd) are better suited for you.We only found reviews on Shopify’s app store; however, the 30 reviewers gave it an average 4.8 out of 5, which is the top score for the best chargeback protection companies on our list.
Intuitive interface Friendly, helpful customer support Great price Confusion on how annual plan is billed
Chargebacks911: Best for Affiliate & High-risk Business
Spots merchant missteps leading to chargebacks Chargeback representment Works with high-risk industries Prevents merchant error chargebacks
Does not seek or block customer charges before they occur Does not refund chargeback fees Does not prevent false declines Chargebacks911 works with all industries, including high-risk merchants, but it’s the only one we found with a specific program for merchants working with affiliates. This chargeback management service combines award-winning technology and personalized analysis to evaluate affiliate marketing techniques to identify those that may intend to commit fraud.
Like Verifi, Chargebacks911 offers several dispute prevention tools, like providing chargeback alerts before they are officially filed, issuing immediate responses or refunds to prevent chargebacks, and providing representation in fighting a chargeback.
Pricing Key Features Affiliate fraud protection and prevention Fraud analysis for source detection Merchant compliance reviews to prevent merchant errors Merchant account cost analysis for cost reduction High-risk merchant support Chargeback alerts Integrations Powers 944 industry integrations Integrates with 40 different CRM platforms Custom integration—sets up a workaround with any platform to engineer a complete integration APIs Customer Support Knowledge base and online guides Online contact request form Email support Chargebacks911 earned 3.78 out of 5 in our evaluation, an excellent score considering the lack of fraud prevention tools. Like many services ranking below Chargebacks911, its focus on dispute management and chargeback resolution means it received a low score on our rubric for fraud prevention. Nonetheless, it earned high marks on chargeback resolution, ease of use, and overall quality of features.
Chargebacks911 won multiple awards in 2023 for its technology and effectiveness in the payment processing sphere. It works with around two dozen industries and just about any currency to provide international coverage. In addition to ecommerce, travel, and digital industries, it has customizable programs for larger businesses and solutions for financial institutions. Chargebacks911 also offers a merchant account cost analysis to determine how to reduce your credit card processing costs.
Strengths Affiliate Fraud Shield: If you work with affiliates, you could be at risk of paying commissions on bogus sales through affiliate fraud. Chargebacks911 is the only service on our list with a program designed to safeguard against this.Prevent merchant error: Chargebacks911 says half of all chargebacks are caused by merchant error. To help alleviate that, it has a 106-point noncompliance check of merchant processes to catch errors before they occur. No other service we reviewed offers such a program, although ClearSale and Kount provide live consultation.High-risk merchant accounts: Chargebacks911 works with merchants with any merchant category code, including those that fall under the high-risk categories.Weaknesses No fraud prevention: In our rubric, ChargebackHelp has a low 1.88 out of 5. It works with 3D Secure and has AI/ML but for fraud recovery not prevention. Note: This score did not look at affiliate fraud, which is a separate program.Does not pay chargeback fees: Unlike others on our list, such as Chargeback Gurus and Kount, Chargebacks911 does not reimburse you for fees incurred by chargebacks it was unable to deflect.Char4gebacks911 earned a 4.55 out of 5 over multiple review sites. While a high score overall, it was average for those on this list. The reviews are also over two years old. People seemed mostly satisfied with it, however.
Midigator: Best for Hands-on Resolution
Customized and automated dispute responses Set custom triggers for notifications Partners with Ethoca and Verifi Chargeback deflection services
Does not prevent fraudulent transaction Does not pay chargeback fees Midigator provides chargeback dispute tools to help you resolve issues before the fees are assessed. It analyzes hundreds of options for compelling evidence for a dispute package with the best chance of winning and has a platform where you can analyze your chargebacks. Here, you can respond to alerts with refunds, stop-order fulfillments, subscription cancellations, or disputes. Midigator claims a 65% to 80% win rate on disputes.
It can also analyze early-indicator data and order information to identify issues that could cause future chargebacks. Unlike the other chargeback services on our list, if it thinks your dispute does not have a good case, it will recommend resolution instead.
Pricing Charges are based on services provided; contact Midigator for a quote Key Features In-depth analytics Account reporting dashboard Chargeback alerts and custom notifications Dispute flows to reduce time spent on disputes Integrations Integrates with Verifi and Ethoca for real-time alerts Integrates with Stripe, Shopify, Authorize.net, Worldpay, Paysafe, and other payment systems for transaction data Customer Support Online resource center where you can view reports and tutorials, access a chargeback reason code directory, and pull templates and sample documents Chatbot (through Kount) Email support We gave Midigator a 3.71 out of 5—just a hair above the average for this list. It had the lowest score for fraud and pre-transaction chargeback prevention, but that reflects its focus. Midigator got perfect scores for quality of features and effectiveness and only lost points on ease of use because it does not provide personalized recommendations for reducing fraud (you can do analysis, however). It missed a perfect score for dispute resolution because it does not pay chargeback fees. With no contracts or minimum spend, it did well in the pricing category, too.
Strengths Improved ROI for chargeback defense: While other chargeback protection services brag that they dispute 100% of chargebacks, Midigator’s software analyzes chargebacks for conditions like evidence and costs associated with defense. If it fails to meet guidelines, then Midigator will not defend. This may affect how many you win, but it may save you money and time in the long run.Works with Verifi and Ethoca: Midigator integrates with Verifi and is a certified VMPI facilitator, like about half of those in this guide. However, Midigator also partners with Ethoca, the Mastercard equivalent of Verifi. This gives it access to information from the most commonly used credit cards. Of those in this guide, only Chargeback Gurus, ChargebackHelp, and Sift also use Mastercard’s system, though most offer it as a separate integration.Weaknesses Weak fraud prevention tools: Midigator, like others on this list, defends against chargebacks but does not prevent them. Its platform provides the data and order information that will allow the user to do their own analysis and decide on their next course of action. The lack of actual fraud prevention capability makes it suitable for those who want a more hands-on fraud prevention approach. For fraud prevention tools, consider Kount, Sift, and Signifyd.No guarantee: Kount, Chargeback Gurus, Signifyd, and ClearSale reimburse you at least your chargeback fees for each lost case, while Disputifier only charges you for the cases you win. Midigator does not have a similar guarantee.Midigator had an average user review score of 4.34—high but below average for those on this list. It did, however, have 58 reviews; half of those we considered had fewer than 10 reviews. Here are some qualities users noted:
Awesome automation tools Fast and responsive support Would like more EU-based support
ClearSale: Best for False Decline Reduction
Uses both AI/ML and human fraud experts to spot and block fraudulent charges before they go through 80% reduction in false declines Fraud consulting services
Not every plan has representment Response and processing times can be slow ClearSale is a chargeback protection system for online shopping carts and apps that prevents chargebacks by blocking fraudulent orders. Similar to Chargebacks911, it uses a blend of AI/ML technology and manual review to identify fraudulent transactions. ClearSale has 1,500+ specialized fraud analysts in their review team. Instead of automatically declining potentially fraudulent orders, ClearSale’s fraud analysis team reviews transactions identified by their AI platform. This helps in reducing false declines—up to 80%, the highest in this guide. It also boasts a 98% chargeback reduction.
Pricing ClearSale has three pricing schemes:
KPI, where pricing is based on the number of approved actions. If they exceed the KPI, you’ll get a discount next quarter. Performance-based, where you pay a fixed percentage of every approved transaction. The percentage is determined by sales volume, business goals, and risk profile. ClearSale pays for any fraudulent transactions that result in a chargeback. Custom, which is a hybrid of the KPI and performance. Key Features Fraud scoring using AI/ML Manual checks of transactions failing AI fraud scores Protection from false declines Blocking fraudulent transactions Reimbursement for chargebacks caused by missed fraudulent transactions (with Guaranteed Protection plan) Integrations Integrates with about a dozen ecommerce platforms, including Magento, Shopify, Oracle, and BigCommerce API for custom integrations Mobile software development kit (SDK) for Android and iOS app integrations. Customer Support 24/7 technical support Phone support Email support Contact form Knowledge base With 3.48 out of 5 on our rubric, ClearSale is a solid service with most tools you need for chargeback prevention and dispute management. It scored high for pricing because of its choice of plans and lack of contracts or minimum fees. While it lost points for not letting you create fraud detection rules, it makes up for it by evaluating suspicious transactions twice to reduce friendly declines. It also took a hit for not having representment.
ClearSale AI scans each transaction, assigning a fraud score based on factors like order information, device, and behavioral data. If a transaction fails the fraud score, it’s then checked manually by ClearSale’s review team, composed of 1,500+ fraud analysis experts.
The provider offers a guarantee plan that reimburses you for any missed frauds resulting in chargebacks. Or, you can purchase the key performance indicator (KPI) plan, where you and ClearSale set KPIs, and you get a discount if ClearSale doesn’t meet them. Kount also has a KPI-dependent warranty.
Strengths Human and AI fraud checks: ClearSale is unique in that it employs both AI/ML and human evaluation of each transaction. This provides an extra layer of protection against false declines and sneaky fraud.Fraud consulting: While other services provide white papers and general tips or have dashboards where you can analyze your fraud, ClearSale offers consulting services. You’re paired with a fraud protection expert in your industry who analyzes your current methods and makes recommendations—without an upsell to its platform. (Fees apply.) Kount also has an assessment program.Weaknesses No integrated chargeback response tools: ClearSale only prevents chargebacks. Most other chargeback prevention companies in this guide have tools for addressing disputes.No representment: ClearSale does not dispute chargebacks. For representation, consider Signifyd, Chargebacks911, Chargeback Gurus, and ChargebackHelp.Real-world users reviewing on G2 gave ClearSale 4.7 out of 5 stars, with 181 reviews, which makes it one of the best chargeback protection services in terms of user satisfaction. Here’s what they had to say:
Easy to use Good customer service (more positive comments than with any other company on this list) Great value Some found the portal dated and not as user-friendly
ChargebackHelp: Best for New Merchants Needing a Payment Gateway
Can automate dispute management BILLAPAY gateway, designed to support high-risk merchants, captures data needed for disputing chargebacks Provides merchant account
Very few tools to stop fraud or chargebacks requests Does not provide ongoing transaction/chargeback analysis for preventing future chargebacks Help site very basic ChargebackHelp is about resolving rather than preventing chargebacks. You can resolve disputes yourself, have ChargebackHelp manage them, or automate the process. It also provides free chargeback analysis and helps high-risk merchants get accounts. ChargebackHelp is the only chargeback management service on this list with its own gateway to reduce costs while providing fraud protection and built-in data capture.
It can send information and evidence to the bank or to customers who may have forgotten a purchase to allow you to fight chargebacks, often before the bank issues the chargeback fee. Finally, it can automatically refund customer money to resolve legitimate disputes, which it says cuts chargebacks by 40%.
Pricing Call for pricing information Key Features Chargeback representment Automatically refund money to customers with legitimate disputes Manual or automated chargeback response Merchant accounts BILLAPAY payment gateway Managed alerts Integrations Integrates with CRMs, payment gateways, and major card networks Partners with Verifi, CDRN, and Ethoca Customer Support Phone support Email support Knowledge base and code guide ChargebackHelp earned 3.28 out of 5 (for comparison, the list average is 3.5). Like Midigator, it had a low score for pre-transaction chargeback protection because that’s not its focus. However, it also took hits for not paying chargeback fees like many competitors and not providing personalized tips. Other individual functions were there, but not as high-quality as, say, Kount or Chargebacks911. Nonetheless, it made an excellent showing for chargeback resolution tools, reports, and dispute management.
Strengths Automated dispute management: If your disputes are basic, you can set ChargebackHelp to handle them automatically. You can also set up rules for issuing refunds through ChargebackHelp’s integration with Verifi.Payment gateway: If you need a payment gateway, ChargebackHelp offers BILLAPAY. It offers 3D Secure authentication, PCI compliance, and, of course, ChargebackHelp’s chargeback protection. No other chargeback protection company on our list has its own payment gateway, although at the bottom of this article, we list some gateways with their own chargeback protection.If you are looking for other payment gateway options, check out our evaluation of the leading payment gateways .
Weaknesses Anemic help section: The online knowledge base and FAQs are sparse and more geared toward marketing than answering in-depth questions. Midigator has a more robust product knowledge base, while Sift offers a wide range of ebooks, webinars, and infographics with tips for avoiding fraud.Little fraud/chargeback prevention: Like several services on our list, ChargebackHelp focuses on reacting to chargeback claims. If you want to be proactive in stopping fraud or false denials, Kount, Signifyd, and Sift are your best bets.We did not find any reviews from real-world users. ChargebackHelp does have a testimonial page. Users there say it helps them stay compliant and avoid chargebacks. They said the support team was friendly.
Payment Services That Include Chargeback Protection for Merchants Not every business needs a separate chargeback management service, as some are cost-prohibitive for small businesses. Many merchant accounts , payment processors (such as Stripe, Square, and PayPal ), and ecommerce platforms offer some form of protection, and it could be a cheaper alternative for getting the chargeback management services you need.
Built-in Chargeback Protection Compared Chargeback protection fees Guarantee Dispute management Chargeback representment Standout feature Free Reimbursement on qualified transactions ✓ ✓ Available in 202 countries Visit PayPal Free Reimbursement on qualified transactions ✓ ✓ $250 in chargeback fees waived each month Visit Square Free for merchants with standard flat-rate pricing* Reimbursement ✕ ✓ AI/ML monitoring, customizable fraud rules Visit Stripe Custom (around 1% per transaction) Reimbursements ✓ ✕ Fraud monitoring Visit Shopify Charges for service you’re enrolled in Depends on enrolled service ✓ ✓ DIY or full-service options Visit BlueSnap Custom ✓ ✓ ✓ Automated responses Visit Bolt
*0.4% per transaction for chargeback protection; 5 cents per transaction for Radar fraud protection for businesses on custom or interchange-plus pricing plans.
PayPalChargeback Protection
Pays for disputes from unauthorized transactions Works in 202 countries Known and trusted platform by consumers
Not for digital items Complex pricing $20 chargeback fee While most chargeback protection services integrate with PayPal, it offers its own PayPal Seller Protection Program, free of charge. It will cover disputes due to unauthorized transactions and items not received, hold funds until issues are resolved, and work with you on the investigation.
This guarantee covers customers in 202 countries; however, it has limitations for disputes concerning digital items or services not received. PayPal Business Account holders enrolled in Advanced Credit and Debit Card Payments can also take advantage of PayPal’s fraud detection tools and chargeback fee reimbursement.
No extra fee for protection $20 for lost, undisputed chargebacks Dispute management tools AI/ML fraud protection tools for qualified merchants Full reimbursement if you prove an order was delivered but buyer claims it was lost PayPal scored an average of 4.58 out of 5 stars on third-party sites like Capterra, G2, and Trustradius. Reviews, however, do not discuss its chargeback, but rather praise its ease of use, while there are many merchant complaints of frozen funds.
Square Chargeback Protection
Free to use with Square Payments Multiple blocking options Includes human expertise Chargeback representation AI/ML fraud monitoring
Not all disputes eligible for protection Fraud evaluations for online payments in the Square network only Square provides free fraud monitoring and risk management. For fraud monitoring, it uses machine learning and payments across the Square system to seek the latest fraud trends and alert you accordingly. Square will work with your customer’s bank on disputed charges.
Its risk management program includes alerts with blocking options, card blocking, custom rule creation, and analytics to spot trends leading to chargebacks in your business. In addition, you get $250 in “free” chargebacks for qualifying purchases.
Chargeback representment Monitors payments Sends alerts if there’s unusual activity Create fraud rules Explains reasons for suspicious payments Square users rate it 4.6 out of 5 over multiple review sites. Its chargeback tools are not reviewed, however. Instead, people praise the POS platform, especially for mobile sales, but like PayPal, has had complaints about withheld funds. Some people also complain that it does not work well with weak internet or when offline.
Stripe Chargeback Protection
Integrates with card networks Automates dispute information AI/ML fraud monitoring Chargeback reimbursement
Monitoring can get pricey No human double-check Stripe offers chargeback protection for an additional 0.4% per transaction, as well as advanced fraud prevention tools for an additional price. Like Square, it uses machine learning to spot and block fraud. You can also set up custom rules and block and allow lists. It covers online sales for digital and physical products for purchases around the world.
Unlike other chargeback programs, if you get a chargeback, Stripe simply reimburses you the disputed amount and waives the dispute fees.
$15 chargeback fee Radar fraud protection: 5 cents per transaction, waived for accounts with standard pricing Radar for Fraud Teams: 7 cents per screened transaction, 2 cents for accounts with standard pricing Chargeback protection: 0.4% per transaction AI/ML fraud detection 3D Secure Customizable rules, block, and allow lists Reports Stripe had an average 4.54 out of 5 from users reviewing on third-party sites. People complain about the price of the payment processing overall and say they can be slow to get payouts. Most agree it’s very user-friendly for integrations and ecommerce, however.
Shopify Chargeback Protection
Shopify handles chargebacks for you Chargebacks tracked in Shopify Integrates with other chargeback services
US-based businesses only May not cover added items for modified orders For US customers accepting online payments through Shopify, the ecommerce software will reimburse you for fraudulent chargebacks. Fraud Protect costs somewhere around 1% of the transaction price, but it varies; contact Shopify for more details.
The provider includes fraud tracking and prevention in all its plans, however. If its packages are not for you or prices are too high, most of the chargeback services on our list integrate with Shopify.
Custom pricing; generally around 1% of the transaction value 400% ROI guarantee Fraud monitoring included in Shopify plans Shopify reimburses for damages and chargeback fees Fraud/chargeback statistics tracked in Shopify Overall, Shopify earned an average of 4.51 out of 5, and like the other payment processors that provide chargeback protection for merchants, reviewers were looking at the overall product. They say the shopping cart software is easy to use even for beginners, but there were complaints about the support staff not being especially helpful. They also complain about the cost.
BlueSnap Chargeback Protection
Self-serve or full-serve options Uses Chargebacks911 tools Automated responses Global reach
Fees for processing <$2,500/month Charges you for services Protection is not automatic BlueSnap is a payment platform with chargeback control. It offers self- and full-service options. It uses Chargebacks911 tools and works with Verifi and other chargeback services to help you automate responses and eliminate merchant issues that lead to chargebacks.
Plans start at 2.9% + 30 cents per transaction with a monthly fee if the processing is less than $2,500 per month. In addition, if you need fraud or chargeback protection, it will enroll you in Kount or Chargebacks911 and charge you at the rate those companies charge them.
Charges you for the service they enroll you in Integrates with Kount and Chargebacks911 Customizable rules Device fingerprinting 3D Secure Representment Bluesnap had the lowest user satisfaction score on this list, but it’s still high: 4.15 out of 5. We did see fraud support mentioned, in that the system is secure; chargeback support was not commented on. Overall people said it was flexible and easy to use, but sometimes, they had delays in payments.
Bolt Chargeback Protection
AI/ML monitoring Assists with disputes 100% fraud chargeback guarantee False decline prevention
May be responsible for payment and fees Pricing not transparent Bolt has a checkout process that flags potential fraud but leaves final approval to you. However, it can automatically respond to chargeback disputes and offers full representation. It covers transactions where a cardholder did not give authorization, such as with lost or stolen cards. For other transactions, merchants are responsible for the payment amount, plus $15 dispute fees levied by the card network.
Users praise its simple checkout process and say customer service is quick and helpful. They also like that the platform is always improving.
AI/ML monitoring Custom rules Chargeback representment 100% chargeback guarantee Automated responses Bolt users gave it 4.29 out of 5 stars, averaged over reviews on Capterra, G2, and Trustradius. However, recent reviews have not been good, with complaints about the sales staff making false assertions and software glitches. Positive reviews praise the ease of use. It should be noted that the most recent review was December 2022.
Pre-Transaction Chargeback Protection 20%
Chargeback and Dispute Resolution 40%
Pricing Most chargeback prevention companies don’t list pricing as it depends on tools, sales volume, and chargeback volume. Thus, we looked for multiple options, no monthly minimums, and no contractual obligations. Disputifier was the only one to get a perfect score because it posts its pricing on its website.
Pre-Transaction Chargeback Protection We believe the best way to prevent a chargeback is to catch it before it happens, so we looked for fraud prevention tools and features that stop friendly fraud before it happens. Kount and Signifyd scored perfectly with all its fraud prevention tools. About half scored 2 out of 5 or lower, because their chargeback management services focus on after a transaction is made.
Chargeback and Dispute Resolution These are the tools you hire chargeback services for: alerts, dispute handling, chargeback representment, and a guarantee or reimbursement of fees if something slips through the cracks. Chargeback Gurus and Kount took top billing here with a perfect 5 out of 5.
Ease of Use We looked for modern, user-friendly dashboards, dispute management tools on the app, and other UI tools. The best chargeback software also offer strong reports and personalized recommendations. Sift and Chargebacks911 got perfect scores.
Expert Score This included our overall impression of quality, the professed success rate, and user reviews on third-party review sites. Perfect scores went to Signifyd, Midigator, and Kount.
Types & Causes of Chargebacks There are three types of chargebacks , some of which are avoidable with good business practices. Some, however, can happen even with best practices, which is where chargeback prevention companies come in.
Merchant Error Chargebacks: This is a chargeback caused by problems with the merchandise or service provided. It also includes accidentally overcharging customers, mismatches in shipping information, or inaccurate product descriptions. Clear return policies, well-trained staff, and an up-to-date POS and payment system can help prevent these chargebacks. Check out our article on chargeback prevention for more tips.Criminal Fraud: This is when someone uses a stolen credit card or account to pay for goods. It’s one kind of payment fraud , but it affects over a third of all merchants globally. Chargeback prevention companies and payment processors with the best chargeback software can stop many of these charges before they go through by looking for key indicators like CVC, address verification, velocity limits, and more.Friendly Fraud: This happens when someone in good faith requests an unjustified chargeback. For example, they don’t recognize a payment on their credit card statement. Like merchant error chargebacks, they are often prevented with strong policies and good customer service. (In this example, having an easily recognizable merchant name on the card statements.)If you end up with chargebacks, there’s still hope! Most credit card companies allow you to dispute unfair chargebacks , particularly criminal or friendly fraud. If you win, you will not have to refund the money, although some still charge a chargeback fee. Another way to avoid a chargeback is to work things out with the customer directly.
Frequently Asked Questions (FAQs) Click through the sections to learn more about the questions we most often encounter about chargeback protection services.
The fees for merchant chargeback protection differ among chargeback management companies. All the providers on this list, except for Stripe, do not have publicly disclosed pricing information, and you will need to contact each of them for a quote. Expect to pay anywhere from 0.3% to 0.6% per transaction.
When a client or customer files for a chargeback, the merchant will need to pay a fee ranging from $20 to $100, depending on the merchant’s payment process. This amount is on top of the payment that will be refunded back to the customer.
There are several practices to follow that may help prevent chargebacks. Some steps you can take are making your return, refund, and cancellation policies clear, providing good customer service, using a payment processor with strong authentication rules, and signing up with a reliable chargeback protection company.
Bottom Line Chargebacks drain your profits not only through lost products and revenue but in chargeback fees. They stem from fraudulent charges, as well as merchant error, charges forgotten by a customer, and lost packages. If chargebacks are draining your profits, one of the chargeback prevention companies above may pay for itself and more.
Overall, we recommend Kount for the most complete protection. Its tools do more than help with chargeback disputes. It prevents fraudulent transactions while ensuring legit purchases are approved. It also analyzes fraud and chargeback activity to help you identify trends and issues and provides other personalized services. It can address industry needs as well.
Visit Kount
