Nuvei Enhances Chargeback Offering, Preventing More Fraud Before it Happens

Fintech provider adds new solutions to prevent and mitigate chargebacks, protecting merchant revenue as eCommerce booms

MONTREAL, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Nuvei Corporation (TSX: NVEI and NVEI.U), the payment technology partner of thriving brands, today announced that it has enhanced its suite of chargeback protection solutions as part of its full-stack payments offering for online businesses. At a time when chargeback rates are at an all-time high, these additions provide comprehensive protection for businesses operating online.

The COVID-19 pandemic and its subsequent lockdowns accelerated the growth of online commerce, and the number of chargebacks grew in tandem. Chargebacks are a major loss of revenue for merchants because they mean more than a lost sale. Chargebacks can lead to fines and higher processing costs.

It is with these issues in mind that Nuvei enhanced its chargeback suite. Integration with Nuvei now provides multiple layers of protection that can prevent chargebacks before they happen and mitigate the damage of those that do occur. According to recent internal data, 40 percent of chargebacks or more can be prevented with these enhancements.

These include Dynamic 3D Secure, a smart routing engine that functions in compliance with the recently enacted PSD2 regulations. By sending transactions on the Strong Customer Authentication challenge route, chargeback liability is shifted from the merchant to the issuer. Seamless payment experiences are maintained with an exemption engine, which analyzes the risk of each transaction to select which can be safely routed to a shorter payment pathway. Ethoca from Mastercard, also available via the same integration, provides real-time alerts when chargebacks are requested.

Other key elements to Nuvei's chargeback suite are integrations with Visa Verifi's Order Insight and Rapid Dispute Resolution. In cases of dispute, these products facilitate merchant customer communication and perform refunds without registering chargebacks, respectively.

Furthermore, Nuvei is integrated with more than 200 acquirers worldwide, which allows the provider to balance chargeback ratios by monitoring acquirer performance and routing transactions accordingly.

"After years of powering digital commerce, we acutely understand the negative impacts of chargebacks and fraud. And over the last year, with online payments at an all-time high, it became even more imperative for businesses to be protected at every stage of the transaction process," said Philip Fayer, chairman and CEO at Nuvei. "We’ve enhanced our chargeback suite to deliver even greater coverage against fraud and preventable customer disputes, helping merchants retain more revenue and reduce potential reputational damage."