The customers bank alerts a database that cbdefense.com has access to. It says that a chargeback is in the making. Cbdefense then emails you which charges. Then you refund immediately and let cbdefense know. Then they hopefully don't push the chargeback through because it was already refunded. They meaning the card holder bank.
It is a measure to take to reduce chargebacks if you need to. That would be going over 100 on any mid/ein number in a single month.
You have to monitor all the chargebacks because refunded sales do get chargeback by accident. So when that happens you need to reply to your gateway and let them know.
I have a system in place that just absolutely kicks ass and I fight chargebacks, and win reversals, a really big percentage overall.
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