5 Best Chargeback Prevention Software: Competitors to Help You Avoid Disputes in 2024

This guide compares the best alternatives for your chargeback protection solution. Keep reading to learn how to avoid chargebacks.

Author

Theodore Sterling

Best Chargeback Solutions for Businesses of All Sizes

Chargeback: Best overall
Kount: Best fully managed solution with fraud protection
Signifyd: Best alternative to Kount
Chargebacks911: Best post-chargeback solution for enterprises
Chargeflow: Best for high ticket e-commerce stores

Here’s what I’ll talk about for each service:

Goods and bads
Who should use it (and who shouldn't)
Commentary
Any neat features

There's a buying guide at the end. Check it out if you're unsure what to pick.

I will also sprinkle in information throughout to help you find use cases for each solution.

Let’s begin with the best of the best.

1. Chargeback: Best Overall

Services:some text
- Alerts
Best for: SaaS & media products & e-commerce (low fulfillment cost products)
Tool type: Software

Pros:

Quick setup
Proven results
Works with all major payment processors

Cons:

Doesn’t have the most integrations

Chargeback works best for digital product or SaaS sellers.

They use chargeback alerts from the following enrollments:

Rapid Dispute Resolution (RDR): Visa
CDRN: Visa and other card networks
Ethoca: Mastercard and other card brands

These alerts warn sellers of issues before disputes happen. This lets them fix problems early.

Some sellers have cut chargebacks by up to 91% using these alerts.

That’s what Chargeback focuses on. Alerts.

They don’t offer chargeback management or fraud prevention. However. Since you’re using software, you will save money in most circumstances.

But there's a catch.

If your product margins are low, you might lose money on alerts. That's why I suggest it for digital product sellers.

If most of your disputes come from friendly fraud, this also won’t help much.

The win rate for friendly fraud is over 40%. Your odds look good, so you won't need to prevent them.

Don't use alerts if your chargeback rate is 0.0 – 0.2%. They'll cost too much at that point.

If your dispute rate is over 1% and you don't win many chargebacks, you need alerts. This applies to all industries.

They are one of the best ways to prevent chargebacks.

Many providers bundle alerts with chargeback management. But you'd likely waste money on extra features.

Then, there are other options that focus on chargeback alerts. I’m looking at you, Chargeblast.

Their setup takes longer, which isn't ideal if you need quick protection.

But they offer more integrations. Consider them if you need a specific platform connection.

They don't offer discount bulk pricing. Chargeback does. You'll pay less for more alerts.

And Chargeback also has a much smoother integration process.

But wait…

I write for Chargeback. And I’m recommending their product?

Yes, but I'm not letting bias cloud my judgment.

Each option here has its uses. I won't suggest something you don't need.

Look into every option. If you come back to Chargeback, try them out.

And if you’re looking for a more “complete” solution, consider the next pick.

2. Kount: Best Fully Managed Solution With Fraud Protection

Services:some text
- Alerts
- Management
- Dispute response generator
- Fraud prevention
- Account protection
Best for: All-in-one solutions for large businesses
Tool type: Hybrid
Formerly known as: Midigator

Pros:

Suite of fraud prevention and chargeback management tools
Integrations with platforms like Shopify and Magento
AI-driven fraud protection software (Kount 360)

‍

Cons:

Pricing lacks clarity and may be high for smaller businesses
Feature set could be too complex for small online retailers

Kount is best for enterprise e-commerce companies needing a fraud and chargeback management package.

Kount offers a range of features for fraud prevention and chargeback management.

Their flagship product, Kount 360, uses AI to protect against fraud.

For chargebacks, Kount provides real-time notifications when disputes happen.

They’ll then use smart filters to choose which chargebacks to fight. Their system makes responses to win more cases and submits them on time.

The platform links with Ethoca and Verifi for order checks and prevention alerts. It also works with Visa Rapid Dispute Resolution.

For new accounts, Kount checks for fraud. They also stop account takeovers and search global watchlists.

These features benefit companies with many customers and transactions. As they prevent fraud.

Kount works with WooCommerce, Magento, and Shopify. This helps large retailers on these platforms.

Pricing starts at $1,000 per month or $0.07 per transaction on some platforms.

This could be too much for low-volume sellers.

Kount's toolkit helps big online stores handle fraud, returns, and chargebacks in one place.

It's a fit for companies that want to scale with automation and need deep data analysis.

But its complex features and pricing don't suit small retailers.

Kount is an Equifax company.

Though they're a subsidiary, you might not want to trust your company's info with them due to the 2017 Equifax breach.

I wrote a separate piece that compares various alternatives.

But this one would be the best pick if you want similar features.

3. Signifyd: Best Alternative to Kount

Services:some text
- Alerts
- Management
- Dispute response generator
- Fraud prevention
- Account protection
Best for: All-in-one solutions for large businesses
Tool type: Hybrid

Pros:

Automated chargeback representment
Financial guarantee against fraud and non-fraud chargebacks
Customizable pricing options for different business sizes

Cons:

Lack of transparent pricing for larger businesses
1% charge on approved orders for small businesses

Signifyd suits businesses of all sizes who want to shift fraud liability and get deep insights into chargebacks.

Signifyd and Kount aim to cut fraud and chargebacks, but they differ in approach.

Signifyd focuses on shifting fraud liability and boosting approval rates. It uses network data to make quick decisions.

Kount offers more tools but may not give the same financial guarantees.

Signifyd's Chargeback Protection checks orders at checkout.

It gives instant decisions backed by a guarantee. This covers both fraud and non-fraud chargebacks on approved orders.

Small businesses pay 1% per approved order, while medium businesses pay $1,000 monthly.

Enterprise pricing varies based on needs.

The platform links to issuing banks.

This lets Signifyd add transaction history to orders sent for approval. It helps prove orders are real.

It also tracks shopper behavior over time. This builds profiles to spot odd activities and stop account fraud.

Signifyd lets businesses set target chargeback and approval rates.

This helps boost conversions while managing risk. Because sometimes an overactive prevention system can result in lower conversion rates.

The system keeps learning to make better choices over time. Potentially increasing conversions even more.

For chargebacks, Signifyd digs deep.

It finds the source and cause of each dispute. This helps businesses prevent future issues.

Kount offers similar features like fraud detection and chargeback management. But it may not provide the same level of financial guarantee.

Signifyd works for various business sizes. Smaller sellers can use it with no upfront cost.

Larger companies get custom setups.

This flexibility sets it apart from Kount, which targets bigger retailers.

Both platforms integrate with major e-commerce systems.

But Signifyd's focus on boosting approval rates could appeal to growth-focused businesses. Its guarantee might also give more peace of mind to smaller sellers worried about fraud losses.

Kount and Signifyd have some features that could protect sellers from merchant error chargebacks.

The next solution might work better.

4. Chargebacks911: Best Post-Chargeback Solution for Enterprises

Services:some text
- Alerts
- Management
- Compliance check
- Dispute source finder
- Representment help
Best for: Comprehensive solution for large businesses
Tool type: Hybrid

Pros:

Full chargeback management system
Detailed reporting and data analysis
Proactive alerts and notifications

Cons:

Pricing not shown upfront
Focus on post-chargeback actions, less on prevention

Chargebacks911 works best for larger businesses that need an all-in-one solution. And who need deep insights into dispute causes.

It uses Intelligent Source Detection to find the source behind each chargeback. This helps businesses spot friendly fraud and build strong cases.

Such information could also help with prevention of similar disputes.

For active disputes, Chargebacks911 uses Compelling Evidence 3.0. This helps create robust responses to win more cases.

The system also checks 106 points of non-compliance. This finds weak spots in a business's practices that might lead to chargebacks.

For instance, it could help you reduce merchant error by finding what you're doing wrong.

Chargebacks911 sends alerts through CDRN and Ethoca.

If you solely want alerts, you’re better off going with Chargeback or Chargeblast.

The platform gives detailed reports on wins, losses, and reconciliation.

This data helps businesses understand their chargeback landscape. It can guide improvements in operations to reduce future disputes.

Chargebacks911 provides resources like dispute letter templates and chargeback reason codes.

These help businesses respond to disputes fast. The system aims to approve valid transactions to avoid losing sales to false positives.

Responding fast is also critical. If you don’t, then you’ll automatically lose chargeback cases.

I’d be careful when using their representment tools.

The FTC filed a lawsuit against them partially because they used “deceptive” tactics when managing chargebacks [1].

I’m sure they got their act together since then. However. It’s a factor to consider.

Chargebacks911 does excel at dispute management. It may not be the top choice for prevention-focused strategies, though.

Its strengths lie in post-chargeback actions and analysis.

This also applies to fraud prevention. You’re better off using Kount or Signifyd for that.

Pricing for Chargebacks911 isn't public. They create custom quotes based on each business's needs. This might mean more flexible pricing, but it can make comparisons harder.

A buddy of mine got a $1,000-a-month quote from them for simple access to the platform. He also has a small business…

Interpret that how you will.

If you’re a smaller business, you might prefer this last option.

5. Chargeflow: Best for high ticket E-Commerce Stores

Services:some text
- Alerts
- Management
- Dispute response generator
Best for: E-commerce stores who sell high-ticket items
Tool type: Software

Pros:

AI-powered chargeback responses
Pay only for successful recoveries
Fast setup with major platforms

Cons of Chargeflow:

Limited chargeback prevention
Pricing structure may be complex for some users

Chargeflow works best for online stores that want to win chargeback disputes without extra work and paying only for results.

Chargeflow uses AI to fight chargebacks.

Its ChargeResponse tool looks at 50+ data points to build strong cases. This helps stores win more disputes. The system learns from millions of chargebacks to get better over time.

For setup, Chargeflow links with Shopify, Stripe, and PayPal in under a minute. This saves time for busy store owners who need to focus on sales.

Stores pay 25% of the money they get back from won disputes. There are no monthly fees or contracts. This means stores only pay when they win.

ChargePay offers a similar service with its representment builder but only charges 20%. However. They don’t also offer dispute alerts.

If you only want alerts, consider Chargeback or Chargeblast.

If you want only representment, think about ChargePay.

Consider Chargeflow as a hybrid option.

As Chargeflow also offers alerts.

Chargeflow's win rate is reportedly at 80%.

This matters because more wins mean more money saved.

The company checks each response before sending it to banks. This extra step helps improve the chances of winning. As there’s less of a chance that the response is missing anything.

One downside is that Chargeflow doesn't stop chargebacks from happening.

It's more about winning disputes.

Chargeflow fits businesses of all sizes.

The pay-for-results model might work better for folks who sell high-priced goods. Or for anyone who operates in industries that don’t have the highest margins.

Now that we’ve compared all the options, we’ll want to ensure we’re making the right choice.

Things to Think About When Searching for Chargeback Protection

Think about the following when searching for chargeback protection software:

Cost
What to look out for
Features

There’s not much to consider when searching for chargeback protection.

But you should know this information to avoid getting something you don’t need.

Let’s begin with the way you’ll pay.

1. Cost

Here are potential pricing models you’ll encounter:

1. Per-Transaction Fees.

This model charges a fee for each sale processed through the software.

It works well for small businesses with low sales volumes. They can manage costs without committing to high monthly fees.

2. Monthly Subscription.

A monthly fee provides access to all features.

This pricing suits mid-sized businesses with steady sales volumes. It makes budgeting easier for growing e-commerce stores.

3. Percentage of Chargebacks.

Some tools charge based on a share of the recovered chargeback amount. It offers pricing based on successful dispute resolutions.

This model is ideal for businesses with occasional chargebacks, like:

Luxury goods retailers
Travel agencies
Smaller transaction values

4. Pay-As-You-Go.

This pricing offers flexibility by charging only for the features you use.

It suits startups or seasonal businesses with changing sales volumes.

They can scale their use of the tool as needed.

5. Tiered Pricing.

Tiered pricing offers different packages based on the service level required.

This approach benefits businesses of all sizes. As sales volumes grow, businesses can upgrade to higher tiers.

Choose a pricing scheme that fits your business size, sales volume, and budget.

2. What to Look Out For

Here’s what to look out for when choosing a provider:

1. Hidden Fees.

Some chargeback tools may have extra costs.

Review pricing details and contracts to avoid unexpected expenses.

2. Limited Integration Options.

Not all chargeback tools work smoothly with existing systems. Choose software that easily fits with your current technology.

3. Poor Customer Support.

Support quality can vary between providers.

Check if help is available when needed. Test each option’s customer support to gauge their response.

Free support might be limited. Consider paid support if necessary.

4. Inflexible Contract Terms.

Long-term contracts can lock you into a service. Look for flexible terms or the ability to change services.

5. Slow Dispute Resolution.

Investigate how quickly the software can handle dispute responses.

6. Incomplete Analytics.

Analytics should provide useful insights, not just raw data.

Choose software that helps you understand trends.

7. Unclear Success Rates.

Some providers may not share their success rates.

Ask their customer support for case studies or testimonials to check their effectiveness.

Now we know how to weed out any bad providers. You should compare their features.

3. Features

Chargeback management tools should have key features for fraud prevention and dispute resolution.

Each feature should serve a clear business need:

1. Real-Time Fraud Detection.

This checks transactions to see if they have any suspicious behavior. For instance, someone may have made a large purchase with a new account at 3:00 AM.

From there, you decide whether to approve the order.

This is crucial for businesses with high sales volumes or frequent online payments. It's vital for e-commerce and subscription-based businesses.

2. Chargeback Alerts.

Issuers send alerts to card networks, who then send it to you before a dispute. You’ll then have a chance to address the issue (usually by a refund) before it escalates.

This is useful for e-commerce, digital goods providers, and travel agencies.

3. Dispute Management.

This helps gather applicable evidence to disputes and automatically submits it. Preventing you from missing deadlines.

This is important for industries with complex sales histories. It allows efficient management of large dispute volumes.

4. Integration Capabilities.

This feature allows the software to work with whatever sales platform they use (e.g., Shopify).

These are essential for businesses using multiple platforms.

5. Blacklist Management.

It helps prevent repeated fraud by flagging high-risk customers.

This is most effective for subscription services and digital goods providers.

6. Automated Workflow Management.

It streamlines dispute resolution and improves overall efficiency.

Making it a great option for high-volume retailers and enterprises.

When selecting a tool, consider your industry-specific needs.

One way to figure out the tools you'll need is to know what you're fighting.

Chargeback Types to Combat

You must know what you're up against to pick a practical tool.

All chargebacks usually come from reason codes. Card brands use these codes to categorize disputes.

These codes will vary by card network:

* JCB orders done in USD will use Discover reason codes.

We can divide these codes into the following chargeback types:

1. Friendly Fraud

It’s a type of chargeback where a shopper disputes a legitimate order for reasons such as:

Regretting the purchase
Forgetting about the order
Taking advantage of the easy refund process

Find more information on friendly fraud in a separate guide.

80% of customers find chargebacks easier than returns. 71% don't know the difference between the two.

Thus:

Some knowingly try to get free money. This is known as chargeback fraud.

We compare the differences in another article.

Then there’s family fraud.

Family fraud is when a family member uses a card without permission.

It can happen when:

Someone borrows without asking
Someone takes advantage of a vulnerable person

Family fraud is a type of friendly fraud. The cardholder isn't trying to trick the merchant.

These make up 75 – 86% of all chargebacks. Making them the most common dispute type [2].

Merchants also win 43.82% of these disputes [3]. That’s way higher than the industry average 30% rate.

If these are most of your chargebacks, you likely won't need much protection.

The next type will require more protection, though.

Summary: This happens when customers dispute legitimate transactions.

2. True Fraud

True fraud happens when someone uses stolen card info to make a purchase.

We provide more information on this topic, along with ways to prevent it, in a separate piece.

Many variants of true fraud account for 1% of disputes. Some forms (e.g., stolen credit cards) reportedly make up 30%.

Sellers win 9.27% of true fraud cases on average. The odds aren’t in your favor.

If these are most of your chargebacks, you'll need to do all you can to stop fraud.

The last type is more so in your control.

Summary: This happens when someone makes an unauthorized purchase with customer information.

3. Merchant Error

A merchant error chargeback happens when the seller makes a mistake, such as charging:

The wrong amount
Twice for one sale
For goods not ordered

These make up 20 – 40% of chargebacks.

I couldn't find a win rate for this type. I imagine it's not high.

If you made a mistake, any proof the buyer gives could be damning.

This means you won't need much chargeback protection. You'll need to fix your company's issues.

You might have read through all of this and not known about the different types of tools.

Let’s change that.

Summary: A seller makes a mistake.

Types of Chargeback Management Tools

Here are the different types of chargeback tools you’ll usually see:

Fully Managed: Outsource all tasks.
Software: You deal with everything.
Hybrid: Balances the other tool types.

I’ll first provide pros and cons of these tools. From there, I’ll explain what each tool is, its strengths, weaknesses, and more.

Let’s begin with fully managed tools.

1. Fully Managed: Best for Outsourcing

Pros:

Access to expert chargeback management
Saves time and resources
Reduces strain on your business

Cons:

Higher cost compared to software solutions
Limited control over the chargeback process
Risk of missed fraudulent activity by the provider

Fully managed tools involve outsourcing to a specialized company.

They handle the entire process. Letting you focus on other areas.

The main advantage is expertise.

The service uses special knowledge to handle disputes well. This saves time and effort for your team.

However:

These services cost more than software solutions. You also have less control over the process. Then, there's a risk of missing fraud due to miscommunication.

Additionally, businesses may experience less control over the chargeback process.

The provider manages the system. Leaving little room for customization or immediate adjustments.

This can be limiting for companies with unique needs. Or those that require frequent changes to their chargeback management approach.

Let’s move on to software where you have more control.

Summary: This outsources chargeback management to specialists.

2. Software (`SaaS` or On-Site): Best for Control

Pros:

Flexible system that fits your needs
More cost-effective than fully-managed solutions
Gives you control over the chargeback process

Cons:

Requires time for system management
Limited support compared to fully-managed services
Performance depends on how well you manage it

Chargeback management software helps businesses handle chargebacks through a subscription.

It can be cloud-based or installed on-site.

Cloud-based tools offer easy access and updates. They don't need much upfront investment.

But they need internet access, and may raise security concerns. Since that leaves your system exposed to hackers if not secured.

On-site tools give more control over data and security. They work without the internet.

But they cost more upfront and need ongoing care.

The choice between them depends on the following:

A business's needs
Budget
IT resources

Anyway:

The main advantage of software is flexibility. You can adjust the system to fit your needs.

It's also cheaper than fully managed options.

The challenge is that you're responsible for running the system. This takes more time than outsourcing.

Thus, the software's success depends on how well you manage it.

It automates and simplifies dispute management, reducing the manual effort involved.

This software enables companies to track, manage, and resolve chargebacks more efficiently.

Users have control over the system, allowing for customization to fit specific needs.

The main advantage of using software is flexibility.

Another challenge is the limited support available.

Unlike fully-managed services, these tools often offer less direct assistance.

This means businesses need to have the expertise to manage and troubleshoot issues.

Companies might need to invest more in training or hiring skilled folks to handle these tasks.

Don’t like the above options? Consider this last pick.

Summary: SaaS chargeback management software offers a flexible and cost-effective solution for managing chargebacks.

3. Hybrid

Pros:

Offers most control and flexibility
Lets you customize tools and services
Combines your expertise with outside support

Cons:

Mixing systems can be complex
Managing multiple providers increases admin work
Needs ongoing review to stay efficient

Hybrid tools mix software and fully managed services.

You can handle some tasks in-house and outsource others. This lets you tailor the process to your needs.

For instance, you could use in-house staff for tasks that don’t require specialties. Then, you could outsource the more niche issues to specialists.

Another plus is customization. You can choose tools that fit without being locked into one model.

This can lead to better results.

However:

Hybrid management can be complex. It needs careful planning to work smoothly. Dealing with multiple providers can increase admin tasks and costs.

You must always evaluate which tasks to handle in-house and which to outsource.

This ongoing review takes time and attention.

There’s not much else to cover here.

Summary: These allow businesses to outsource some tasks while having control over others.

Wrapping Up

The tool you’ll need depends on your industry, specific needs, and number of sales you have. If your chargeback rate is approaching 1%, you’ll need to do all you can to reduce it.

Otherwise. You might end up on a dispute monitoring program, which can lead to losing access to platforms like Visa.

Chargeback can help. We’ve reduced dispute rates for some merchants by up to 91%.

Learn how we can help.