Quote:
Originally posted by A.Martin
eblastics,
You are indeed correct. You have identified a major problem that has plagued the industry for years.
On our end, and from day one, we have always been very strict on chargebacks. We have a system of warnings and flags that notify webmasters the minute there is a problem. By the time they hit 0.3% chargebacks, let alone 1%, they are already hearing from us - not in a draconian way but they get our attention and our help. In almost all cases, webmasters work with us to lower their chargebacks.
It is funny that you mention Digiblaze. When that company went down, I talked personally with a number of webmasters who were using them and now looking for a new home. They proudly claimed they were doing in excess of $100k per month with "only" 2% chargebacks. I wished them best of luck in their search for a new third-party biller 
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Now, I am going to disagree with you A. Martin for your statement alone. ;) Not because I am a fair man, but I think your statement above is also misleading and you might want to look at your stuff once more; MAYBE.
Chargebacks has very little to do with the quality of a site. Heck, most chargebacks at least if not done internally are also caused by the customer's end.
Geez, it is NOT hard to figure out the Mod 10 algorithm for Credit Cards, and it is NOT rocket science to find a match on an AVS. A lot of people do chargebacks simply because people are dishonest by nature. Be is a 2% or a 0.02%, it will always happen in the third party billing industry. It is part of the game. Let me give you the scenario.
Someone does 10 transactions, you get one chargeback. Percentage is 10%. Someone does 1,000 transaction, you get 10 chargebacks. Percentage is 1%. But you should be worried about the 10 raw chargebacks instead of the 1 chargeback. You are barking to a certain extent up the wrong tree would you not? Besides, a third party billing lower's their CHARGEBACK across the board, but now that you have to report, I like to see YOUR COMPANY MAINTAIN lets say a decent 0.04% ACROSS THE BOARD FOR ALL PAYSITES.
It is NOT going to happen A.Martin, and you know it. I am saying your company may have found a niche if you do what you do right now and bypass the system. But if you report 0.04% PER SITE, geez, you should NOT be in this business but the FRAUD SCRUBBING one, you have a better deal then E Falcon and the rest. And you will be richer then them. So don't blow your horn on this right now. Sorry to be harsh, but your business model is good if you take it offshore, but if you are going to monitor PER COMPANY and require a certain chargeback rate then I think it is not realistic enuff.
-Nato