Retail sites are facing an increasing threat to business: chargeback fraud. From impacting revenues to damaging customer relationships, the implications of fraudulent chargebacks can significantly affect your business’s bottom line.
As security technology continues to evolve, we’re now presented with products to proactively tackle and prevent chargeback fraud incidents. That’s where Verkada’s cutting-edge technology solution, Helix, steps in.
It’s a unique strategy: integrating transaction data with powerful video evidence. In this blog, we’ll dive into what chargeback fraud is, how it impacts businesses, and how Helix can protect against this growing issue.
What is chargeback fraud?
Chargeback fraud, also referred to as “friendly fraud,” occurs when customers dispute legitimate transactions with their credit card provider to reverse the charges. While chargebacks were originally designed to protect consumers from unauthorised or incorrect transactions, some now take the opportunity to exploit this system. An example would be getting refunds on purchased items, which results in potentially unfair financial loss for a business.
Both physical and eCommerce retail sites are vulnerable to chargeback fraud. Common scenarios include disputes over item delivery, product quality, or even claims that an item was never ordered.
Despite the awareness of chargeback fraud growing, this retail hindrance continues to rise.
How does chargeback fraud impact businesses?
More than simply an inconvenience, chargeback fraud is a growing problem that can be costly to businesses, with severe financial impact. This is even more so when combined with other retail challenges such as theft or fraudulent returns.
It impacts revenues but also, it damages a retailer’s reputation and customer trust. Beyond this, the process of handling chargeback fraud can be time-consuming. Banks tend to side with consumers, leaving businesses with few recourses and fighting an uphill battle.
With just a few clicks on their banking apps, a consumer can quickly and easily initiate a chargeback claim. This leaves businesses open to fraudulent and unintentional chargebacks. It’s essential that businesses implement chargeback fraud prevention strategies to protect their assets, revenue and reputation. Strategies such as Verkada Helix.
Introducing Verkada Helix
Are you looking for a powerful tool that integrates into video surveillance with transaction data? Then look no further than Helix, Verkada’s security tool designed to help businesses combat chargeback fraud.
By linking point-of-sale (POS) records with video footage, Helix allows retailers to quickly access evidence for disputed transactions. How does this help? Well, it makes it easier to verify purchases, uncover fraudulent returns, and resolve claims promptly and efficiently, before the process goes too far.
How can Helix help protect businesses against chargeback fraud?
Verkada’s Helix provides chargeback fraud protection for businesses. The product integrates transaction data from point-of-sale (POS) systems or third-party platforms with video surveillance footage, which allows businesses to quickly investigate suspicious transactions and uncover fraudulent behaviour.
With Helix, businesses can protect themselves against fraud while reducing the time and effort needed to gather proof for chargeback disputes. Let’s break down how Helix offers protection against chargeback fraud:
- Searchable evidence: Helix allows retail owners and security staff to pull up video footage of specific transactions by correlating POS data with video evidence. If a customer disputes a purchase, the retailer can easily retrieve the video of the transaction to verify what really happened.
- Quick identification of fraudulent claims: whether it’s proving that a customer bought an item they claim they didn’t or verifying the delivery of goods, Helix provides solid visual proof and evidence to contest fraudulent claims.
- Reduced time to dispute: there’s no need to sift through hours of footage. Helix lets you search for relevant transactions based on specific criteria. Criteria such as date, time, or even transaction number. Gathering evidence for disputes is usually a lengthy process, but Helix offers changes this, improving efficiency.
The benefits of Helix
There’s a whole host of benefits for retail businesses that choose to onboard Helix into their security suite. These include:
- Quick dispute resolution: with powerful search capabilities, Helix cuts down the time spent disputing chargebacks, offering businesses a quick way to pull up evidence and challenge fraudulent claims.
- Enhanced security: by linking transaction data to video footage, businesses can enhance their overall security measures. An example would be if a customer repeatedly initiates chargebacks, the retailer can flag this individual as a Person of Interest (POI) in the system, which helps alert staff for future store visits.
- eCommerce protection: Helix isn’t just practical and beneficial for physical retail spaces. When it comes to online orders, video footage from fulfilment centres and warehouses can be used to validate the accuracy of the packaging and delivery process, providing proof that items were packed and shipped.
Other security Verkada products for retail
So, we’ve discussed how Helix is helping businesses fight back against chargeback fraud, but Verkada also offer a suite of powerful security tools that can be integrated together for wrap-around security service. Some other Verkada tools tailored for retail environments include:
- Verkada video security: advanced cameras offer high-resolution footage, making it easier to capture the smallest details of any transaction or delivery. Face detection and real-time alerts improve security and enable businesses to stay vigilant against potential threats.
- People analytics: Verkada’s intelligent video surveillance systems offer deep insights, analysing customer traffic patterns and behaviours, retail businesses can optimise store layouts, staffing levels, and product placements.
- AI tools: Verkada’s AI can allow you to scan and search footage quickly and effortlessly, entering key visual identifiers into the search criteria.
- Access control: for managing authorised and unauthorised entry, limited time windows, and promoting customer and employee safety, access control can be handled through the cloud Verkada Command portal. You can even unlock doors remotely.
Start protecting against chargeback fraud today
The retail landscape is facing growing challenges, including chargeback fraud. Now more than ever, it’s important to have a prevention plan in place. Ignoring the issue of chargeback fraud can cost your businesses a lot of money and damage to reputation. This money could be spent on other service and team resources, so it’s a financial loss that causes big problems.
Verkada’s Helix is helping retailers take charge, combining data with powerful video evidence to allow businesses to swiftly challenge illegitimate claims. It’s time to take control of your chargeback management processes. Cut down on the time spent disputing fraudulent claims, and improve overall security, all whilst integrating your Helix system with your Verkada suite. Chat to our team today to find out more.