You made the sale. Shipped the product. Delivered the service. Then the bank hits one button and takes your revenue with it.
Unlike a refund where the business controls the narrative, a chargeback is a forced reversal. The customer doesn’t contact you; they talk to their bank.
That bank’s first move? Yank the money from your account and apply penalties. Even worse, the dispute process is a time-suck. Gathering evidence, compiling documents, and waiting weeks for a verdict – all for a sale you already fulfilled and a product you already shipped. Then factor in that merchants lose around 75% of those disputes.
Now multiply that headache across dozens of transactions, and you’ve got a threat that cripples your margins. The smartest merchants know: chargebacks can be beaten. Here’s how.
Why “High-Risk” Isn’t the Only Risk
Think only gun shops and gambling sites get chargebacks? Ask any online shops selling anything from stickers to painted mugs.
It’s easy to think chargebacks only plague “high-risk” verticals like nutraceuticals or travel. But the truth is, chargebacks hit businesses of every shape and size.
Examples of Chargeback Issues
- A viral TikTok UGC video sends 10x the usual traffic to a Shopify store. Fulfillment lags two extra days because of it. Suddenly, dozens of customers dispute charges because their package didn’t arrive when they expected.
- A SaaS startup is running a free trial campaign. When the trial ends, hundreds of new users get billed, and some forget they signed up and instantly file disputes.
The real risk isn’t your industry. It’s how prepared you are when things go wrong.
Stop Fraud Before It Hits Your Bottom Line
Every fraudulent transaction doesn’t just steal a sale. It hands you a chargeback, kills your margin, and damages your reputation.
Here’s the brutal truth: fraud is the single biggest driver of chargebacks. And by the time you spot it, the damage is already done. Most small and mid-sized businesses don’t have the time or tools to catch it in time. That’s why payment fraud is projected to drain up to $49 billion by the year 2030.
But the smartest merchants aren’t waiting for the fraud to happen. They’re stopping it before the sale clears.
Modern fraud prevention systems act like an invisible security force at your checkout, scanning every transaction in real-time. They look beyond the basics like IP addresses and location data and analyze deeper patterns that humans simply can’t spot fast enough.
Smart merchants use fraud prevention tools that:
- Flag suspicious purchase patterns like rapid-fire transactions from the same device or card
- Analyze transaction velocity and block unusual activity bursts
- Track device fingerprints to catch repeat fraud attempts
- Score transactions in real-time based on fraud risk, not outdated templates
- Automatically block or review flagged transactions before they hit your account
The result? You approve good customers faster, reject bad actors earlier, and spend less time cleaning up financial messes.
Fraud is evolving every month. If your prevention strategy isn’t evolving faster, you’re falling behind.
Why Integrated Solutions Are Your Best Defense
Scrambling for screenshots during a dispute is like showing up to court without your lawyer.
Chargebacks force you to prove the transaction was legitimate. But too many businesses juggle disconnected systems: Shopify here, Stripe there, email records lost in an inbox jungle.
An integrated payment solution keeps everything in one place. Your payment processor, fraud filters, transaction logs, and customer profiles should sync seamlessly. That way, when a chargeback hits, you can instantly pull receipts, fulfillment confirmations, and customer communications without chasing down different teams.
The merchants who win disputes aren’t luckier. They’re better organized.
Build Your Business on Ironclad Security & Compliance
Your customers trust you with their credit card data. Don’t give them a reason to regret it.
Every card swipe and online checkout is a potential target for fraudsters. Protecting your payments isn’t just about compliance, it’s about trust. Without airtight encryption, PCI compliance, and proactive security monitoring, your business becomes an easy mark.
And when a breach happens, it’s not just your customers who lose. Banks may increase your rates, processors may terminate your account, and your reputation could take years to rebuild.
Security is the foundation that prevents fraud and chargebacks from taking root.
24/7 Support Isn’t Optional, It’s Chargeback Survival
When your account gets frozen at 3 a.m. on Black Friday, will your processor even pick up the phone?
Too many payment processors hide behind offshore support teams and ticketing systems that take days to respond. But chargebacks and fraudsters don’t work 9 to 5.
You need support teams that understand the stakes. Teams who answer when your volume spikes or your fraud alerts ping, otherwise your biggest sales day could turn into your biggest risk. Sometimes, a single phone call can stop a chargeback before it happens if your partner’s actually available.
Great support isn’t just service. It’s survival.
Chargeback Protection Built for Growth
Legacy processors say chargebacks are your problem. Luqra says they’re ours to help solve.
At Luqra, we optimized our underwriting to give merchants what they’ve never had before: a risk profile that reflects how they operate, not what industry they’re in.
With our fraud strategies, you’ll:
- Spot threats before they become disputes
- Defend chargebacks with integrated transaction data
- Pay rates that reflect your real risk, not your reputation
The results? Fewer chargebacks, more approvals, and payment processing that fuels your growth, not your anxiety.
Ready to shield your profits from chargebacks? So are we.
We’re not just a processor, we’re a true payments partner. Contact us today to grow and protect your profits.
