Chargeback protection services help companies of all sizes spot potential credit card fraud and prevent chargeback losses. We looked at the most popular options and rising stars and decided to review Signifyd, Square, and Chargeback Gurus. These companies covered the range of options for small businesses in terms of cost, ease of use and effectiveness.
Best Chargeback Protection Service for Ecommerce Businesses: Signifyd
We recommend Signifyd as the best chargeback protection service for small businesses because they’re the only service that offers ecommerce sellers a 100 percent chargeback guarantee without limits. If you get a chargeback on an approved order, large or small, US or international, Signifyd covers it 100 percent. Period. They’re also the only service with a low-cost on-demand coverage plan geared for small ecommerce sellers and startups.
Signifyd vs. Square vs. Chargeback Gurus Summary Table
|Who it’s Best For|
|Ease of Setup/Use|
8am-6pm M-F CST
Best Chargeback Protection Service for Ecommerce Businesses: Signifyd
We recommend Signifyd as the best chargeback protection service for small businesses because it backs every approved order with a 100% chargeback guarantee, without limits. If you receive a fraud-related chargeback on any approved order, large or small, US or international, Signifyd covers the value 100%. Plus, the payout is made within 2 business days. Unlike Square, which has a $250 limit on order value and total coverage per month, Signifyd has no value or monthly restrictions. And unlike Chargeback Gurus, any ecommerce business can protect themselves using Signifyd’s services from day one, instead of waiting until they face chargeback losses.
Signifyd’s focus is solely online. If you need chargeback protection for transactions like invoice payments or in-store sales, Square and Chargeback Guru are better suited to those needs. But if you’re an online business, Signifyd has you covered with a PCI-compliant system that integrates with your ecommerce platform. Within minutes, it can be set up to run every transaction you receive through a proprietary verification system that’s far more intensive than standard credit card authorization.
After verifying key data points, Signifyd places a fraud score on every transaction you process. If they give it the green light, it’s guaranteed 100% and you’re covered. Square’s chargeback protection has a similar guarantee, but it limits coverage to $250 per month and doesn’t cover transactions over $250 at all. Signifyd tops this with no monthly or transaction value limits. Chargeback Guru is a different solution entirely. It helps you minimize chargebacks and fights both fraud and non-fraud chargebacks on your behalf to recover funds, but offers no guarantee.
Of course, Signifyd’s service comes at a price, but it offers 2 simple, percentage-based pricing options that are accessible to sellers of any size. Complete Coverage assesses a 1% fee to every approved transaction, but you don’t pay the fee on declined transactions. But over time, 1% of every order adds up. So, you can select On-demand Coverage which charges a higher 4% fee, but only on transactions that you want verified and guaranteed. This is a good option for small sellers who just want coverage on international orders or sales over a certain value.
In contrast, Square’s chargeback protection is totally free, but remember that Square has a $250 limit. Chargeback Gurus, being mainly a prevention and recovery service, bases its fees off your overall chargeback volume. If you don’t have a problem yet, you don’t need their chargeback recovery service. If you want to prevent ecommerce chargeback problems before they start, or insure against fraud as you expand into international or large-ticket sales, Signifyd, quite literally, has you covered 100%.
Best Chargeback Protection for Small In-Store & Online Sellers: Square
Square’s free chargeback protection is one of the many reasons we recommend Square payments as a top small business payments solution. With Square, you get free chargeback protection up to $250 per month, and $250 per transaction on sales made using any of Square’s payment options. This means in-store, mobile, and online sales, plus payments for invoices, recurring charges, and more are all covered. As long as you follow their payment best practices, you’re covered on a full range of eligible payments with no added costs.
For most small businesses, Square’s $250 limit more than covers the occasional chargeback, but it’s important to note that transactions over $250 aren’t covered, period. Because of Square’s $250 limit, Signifyd can be the better choice for online sellers needing protection on volume sales, high-value goods, or international sales. Though, Signifyd’s service comes with added costs and is for online sales only. Like Square, Chargeback Gurus’ service covers online, in-store, and service payments. But, it’s really geared toward larger sellers already dealing with chargebacks in some volume.
One nice feature of Square’s free chargeback protection their convenient in-dashboard chargeback management portal. If a customer opens up a dispute, you’re notified within your Square dashboard, not via regular mail. Then, you simply submit your response and all supporting documentation using Square’s convenient online dispute screen. This is a big time-saver compared to handling and tracking chargebacks manually via fax and email.
Square’s online system ensures that your claim is submitted properly, but once submitted, it’s really out of your hands. Here, Chargeback Gurus’ service excels by comparison since they actively fight both fraud and non-fraud disputes on your behalf. But, for fraud transactions under $250 and as long as you haven’t maxed out your monthly $250 limit, Square has you covered for free.
Best Chargeback Protection Service for Volume & High-Risk Businesses: Chargeback Gurus
Chargeback Gurus’ chargeback prevention service differs greatly from the chargeback protection that Square and Signifyd offer. Chargeback Guru provides clients hands-on chargeback representation and works to both recover funds and minimize a business’s exposure to disputes of all kinds. In comparison, our Signifyd and Square cover your losses on fraudulent chargebacks, but that’s about it.
Chargeback Gurus is more than fraud insurance. Like our other top picks, they handle fraud disputes, but also fight the many non-fraud causes of chargebacks. They fight disputes where customers don’t recall a sale, can’t locate a package, or don’t want to bother with a return. Plus they deal with disputes based on delivery dates not clearly communicated, contract agreements not fully defined, and products or services that don’t meet expectations.
Unlike Signifyd and Square, Chargeback Gurus works hand-in-hand with clients to pinpoint the many factors that can lead to both fraud and non-fraud chargebacks. Compared to Signifyd and Square, which connect and work through online means, Chargeback Gurus has a full suite of personal services tailored to solve chargeback issues however and wherever you sell. Using their full suite of services, they win on average 65% of client chargebacks, plus lower chargeback occurrence by an average of 50%.
Chargeback Gurus’ service costs are needs-based and not published, so a direct cost comparison to Signifyd can’t be made. They’re obviously more expensive than Square’s free coverage, though. Chargeback Gurus’ fees usually are based on overall chargeback volume because they take a percentage of what you recover. But for a fee, they also help small sellers define best practices and remedy workflow and system problems in the early stages, before they start causing chargebacks.
In-Depth Review: Signifyd vs. Square vs. Chargeback Gurus
Pricing for chargeback protection and prevention services varies based on the type of service needed. Some, like Signifyd, charge a percentage of each transaction. Others, like Chargeback Gurus are needs-based per account. Then there are the free options, like the limited coverage that’s included at no cost with each Square account. The best option really depends on the type of service your business needs.
Ease of Setup & Use
Chargeback protection services work in different ways, so setup needs vary. We looked at what is required to initiate the service and how easy it is to respond to or report disputes when they occur. Again, the best option for you really depends on the type of chargeback protection and prevention service your business needs.
Chargeback protection and prevention solutions come in two different types of services. Signifyd and Square essentially insure sellers against outright fraud. These are cases where the buyer is not who they say they are, and credit card data usually is stolen. These services employ added verification to each transaction and cover you financially when a fraudulent order slips through.
In contrast, Chargeback Gurus helps you recover losses on all types of chargebacks, both for fraudulent and non-fraud reasons. They don’t provide the blanket insurance on transactions like Signifyd and Square, but have a far larger set of services that help businesses recover disputed funds, plus tools to help minimize all types of chargebacks.
Signifyd focuses on ecommerce sellers and its plug-and-play apps for top carts and API for others takes just minutes to install. Square’s chargeback protection needs no integration since it’s included in every account. Chargeback Gurus has a team of experts to handle any needed integrations.
All three of our top picks offer phone, email, and online service. But, of the three, only Chargeback Gurus has a published phone number that you can call an instantly reach their service.
All Chargeback Protection Service Options
|Software/Service Name||Best For||Description|
|Signifyd||All ecommerce||Best for ecommerce sellers of all sizes|
|Square||Small Retailers, Ecommerce & Service Business||Free protection $250 per month/transaction|
|Chargeback Gurus||Midsize Retailers, Ecommerce & Service Business||Fights and helps prevent chargebacks|
|Eye4Fraud||All ecommerce||Service similar to Signifyd, but pricing not published|
|ChargebackHero||Small & Midsized Sellers||Fights chargebacks, $250/mo. chargeback value minimum|
|Chargeback 911||Midsized Sellers||Fights chargebacks, $500/mo. average chargeback value minimum|
|Sift Science||Midsized Sellers||Monitors all types of fraud, $500/mo. minimum|
|Pinpoint Intel||Midsized Sellers||Fights chargebacks, $500/mo. average chargeback value minimum|
Bottom Line: Best Chargeback Protection Services
Chargebacks are the bane of every business that accepts credit cards and ecommerce sellers are especially vulnerable to serious losses from fraudulent sales. We found Signifyd’s versatile pricing system to be the best solution to help ecommerce sellers or all sizes ensure that every order shipped is profitable, even high-value and international orders. Square offers built-in protection with every account, but with a $250 limit, it’s not right for volume sellers or larger retailers. Chargeback Gurus is the solution for any business or service provider that deals with a number of chargebacks and wants to fight and reduce them overall.
To learn more about protecting your business from chargeback losses, read our chargeback prevention guide. And if you have any experience with or questions about the services covered above, please share in the comments below.