This post was guest authored by Timmy Nafso, Executive Vice President of FortisPay

A thorough look at the chargeback process

Protecting your consignment shop means more than a lock on the door. Now, it’s essential to protect against fraudulent credit card transactions too. A 2018 article stated, “the true financial impact of chargebacks stands at more than $150 billion every year.” Learn how you can guard against consignment shop chargebacks.

What is a consignment shop chargeback?

A chargeback is a transaction that has been disputed and returned by the cardholder/issuing bank. It reverses a credit card transaction and withdraws funds that were previously deposited into the consignment shop’s bank account. The issuing bank reviews the disputed transaction and settles either in favor of the cardholder or the merchant.

Types of chargebacks

The two main types of chargebacks are fraud and processing error.

Two types of Fraud:

1. Friendly Fraud  “Friendly” fraud refers to consumers who use the chargeback process to secure a refund or obtain an item for free. Often, customers dispute a transaction with the bank instead of contacting the consignment shop for a refund. The customer claims the products were not as described. According to them, they never intended to purchase them, or the original transaction was never authorized. In reality, these are usually false claims to cheat the system.
2. True-Criminal Fraud This type of fraud involves a person or party stealing someone else’s personal information. Data breaches, card skimming and account takeovers are all methods used by thieves to get their hands on card information.

Processing Error:

When customers never receive their purchase or the merchandise arrives damaged, it’s considered a processing error chargeback. In addition, errors can occur with duplicate processing or when recurring charges were undisclosed. As a result, the customer revokes their payment.

Chargeback Mitigation Team vs. Traditional Chargeback Department

A traditional Chargeback Department processes paperwork while a Chargeback Mitigation Team provides payment education, compliance assistance, and preventative security. Fortis recognizes the frustration consignment shops experience managing chargebacks and the ever-growing risk for fraud. Our team conducts a four-part training/improvement program, specifically targeting your vulnerable areas. We prevent risk by proactively monitoring and fighting for you. Fortis guarantees merchants will win more chargebacks with our team on your side. No other payment processor currently offers this incredible value-added service.

Fortis Payments has created a free comprehensive Guide to Chargeback Protection for retailers. To download, please click the button below!

This post is guest authored by Timothy Nafso, Executive Vice President of FortisPay

Split payments give your customers options

There’s a lot of buzz going around lately regarding split payments, especially because so many businesses prevent them. A split payment is when a customer pays with more than one method of payment per a single transaction. The most common split payment is cash and the remainder on a card. But, the most sought-out type of split payment is when a customer can pay with more than one card per transaction.

Many large retailers, including Amazon and Target, do not allow multi-card transactions. Often, it’s due to security regulations they have applied across the corporation. Or, they want shoppers to use gift cards as a secondary payment method. But unlike large retailers, the average, small brick-and-mortar business has a great advantage: The ability to offer split payments.

Why offer split payments?

Think about it: Split payments mean less credit card processing fees to a singular card brand. They can also encourage the customer to spend a little extra. For example, maybe their spouse would notice a $100 charge on the credit card, but not notice $50 on one and $50 on another. Aside from customers hiding payments from their significant others, many might prefer this method from a financial standpoint. Maybe they only have $50 to spend on their debit card, but REALLY want the jacket they found. They are then able to put the remaining balance owed on a credit card they can pay off with their next paycheck.

Split payments could be a game changer for some

In the world of consignment shops, antique malls, thrift stores, and upscale resale, it can be hard to sell an item with significant value. For example, if your average item costs $25, but you have a collector item worth $250, you may have a hard time getting your average customer to pay ten times the cost they normally spend. BUT – the ability a customer has to pay with more than one card might be a game changer. They might see distributing that large cost among multiple credit cards is a good idea. In contrast, you have the customer who may not have the financial means to pay for something they desperately need. Imagine Wendy, a single mom of three, visiting a consignment shop to buy back-to-school clothing. She doesn’t have a lot of money to spend, and the only jeans she found in her son’s size were out of her price range. By giving her the ability to pay with split payments, the store is relieving a huge burden on her shoulders. She’s now able to provide for her children.

Introducing FortisPay

Thanks to SimpleConsign’s new partnership with FortisPay, the integration allows SimpleConsign users to accept multiple cards per a single transaction. This is not only convenient to customers, it’s something that not every retail software is capable of. This integration sets your store apart from the competition and will continue to boost sales and drive foot traffic.

Benefits of the FortisPay integration include:

• Free, simple and quick application process
• 24/7 White Glove Customer Service – customers are like family!
• Payments will sync and auto-post back to your SimpleConsign software
• Accept multiple cards on a single transaction
• Send auto-invoices and receipts via email
• Accept online & mobile payments

You may learn more about this new and unique partnership at:  learnmore.fortispayments.com/simpleconsign/