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Chargeblast: The first chargeback prevention app on the Stripe app marketplace

Chargeblast has launched the first chargeback prevention app on the Stripe app marketplace. It helps merchants avoid disputes and it helps merchants with 1%+ dispute rates bring it under .1%. Chargeblast connects directly to VISA/Mastercard/Amex/Discover to issue notifications whenever a customer initiated the chargeback process.

Since the data is sourced directly from the credit card companies, alerts are guaranteed to turn into chargebacks if un-actioned. Coverage on VISA is near 99%, Mastercard 90%+ and Discover/Amex integrations are available as well.
What features does the Chargeblast integration provide?
Chargeblast allows you to:

• Transaction Matching — alerts from Mastercard & VISA will be matched to your Stripe transactions. No more hunting down transactions one by one in Stripe.
• Billing Descriptor Override — for large merchants where transaction amount, date, and last 4 digits are not enough to match transactions, you can set up several billing descriptors from within Chargeblast that will override the billing descriptors set in your Stripe account.
• EFW Rules — for merchants needing additional coverage selling low ASP products, set up custom low early fraud warning rules to auto-refund specific transactions. Early fraud warnings are issued by Stripe and can be used as an inexpensive way to refund potential chargebacks. It’s worth noting, though, that EFWs are only 60% likely to become a dispute, unlike the other alerts (which are guaranteed to become chargebacks if not refunded).

The Post-Holiday Return Surge

In 2023, 15.4% of all holiday purchases were returned, according to FitSmallBusiness. While that’s a staggering number, return rates last year were actually 2.5% lower than in 2022. Unfortunately, eCommerce businesses actually face higher rates of return, with 17.6% of items sent back compared with 10% for brick-and-mortar stores.

You’ll need to be ready to handle these returns effectively to both minimize financial losses and maintain the trust of your customers. To get ready-to-manage returns effectively:

• Transaction Matching — alerts from Mastercard & VISA will be matched to your Stripe transactions. No more hunting down transactions one by one in Stripe.
• Billing Descriptor Override — for large merchants where transaction amount, date, and last 4 digits are not enough to match transactions, you can set up several billing descriptors from within Chargeblast that will override the billing descriptors set in your Stripe account.
• EFW Rules — for merchants needing additional coverage selling low ASP products, set up custom low early fraud warning rules to auto-refund specific transactions. Early fraud warnings are issued by Stripe and can be used as an inexpensive way to refund potential chargebacks. It’s worth noting, though, that EFWs are only 60% likely to become a dispute, unlike the other alerts (which are guaranteed to become chargebacks if not refunded).

While no company likes receiving a lot of returns, you can turn these transactions into opportunities. One way to do that is to showcase alternative products during the return process. You may be able to convince customers to turn a return into an exchange instead, or even upsell them into a better product than the one initially purchased.

You can also collect data from the returns to identify patterns, such as common problems with products or misleading descriptions that may have left customers disappointed. By identifying and correcting these issues, you can reduce the return rate going forward and improve the customer experience.