USDT Launches Chargeback Recovery Services for Merchants to Recover Losses Due to Friendly Fraud

NEW YORK — US Digital Transactions Corporation announced today the first chargeback recovery services designed specifically for merchants to collect revenue due from consumers that perpetrate friendly fraud.

“Friendly fraud” occurs when a consumer, without a valid reason, refuses acceptance of the charge for a transaction they performed and reports the false claim to their bank/card issuer requesting a refund or chargeback.

The payments industry is flooded with fraud prevention and fraud screening tools from solutions matching cardholder data, verifying addresses, etc. Unfortunately, these tools cannot predict whether or not a purchaser is going to perpetrate friendly fraud. The most recent industry statistics indicate that 20% of the 138 billion dollars of fraud is attributed to friendly fraud.

“Chargebacks can be the most frustrating aspect of a business. The merchant must comply with regulations set forth by the card associations to refute the chargeback and most often the merchant ends up losing the revenue. A merchant can also lose their ability to accept credit/debit cards if the percentage of chargebacks is too high,” states Greg Wooten, CEO, USDT.

USDT’s browser-based Chargeback Recovery Services is a stand-alone, enterprise-grade application designed for businesses of all sizes that are concerned about protecting their brand and reputation. The CRS application provides merchants soft and aggressive options for revenue recovery. The first option is an easy-to-use, fully automated and economical flat fee collection service whereby a merchant sends a series of time-tested debt collection letters to the debtor and receives 100% of all collected revenue. This option will additionally report the debt to all three major credit bureaus. The second option is a full-service performance-based service with no up-front fees. The CRS application grants the merchant the option of transitioning from one option to the other with a simple click of the mouse.

US Digital Transactions Corporation is a recognized leader in cutting-edge payment processing technologies, disaster recovery and asset protection solutions. High-volume merchants and payment providers deploy USDT’s services to streamline operations and reduce expenses. USDT is committed to providing a secure environment for financial transactions and educating the global business community on best practices to reduce fraud and the overall cost of payment processing worldwide.