In Europe’s high risk sectors like forex, crypto, gaming, and CBD, chargebacks can quickly erode profits and damage acquirer relationships. Staying below the 1% threshold set by EU acquirers is crucial to maintaining processing continuity.
At KunnectPayments, we equip merchants with AI driven tools, early alerts, and automated dispute systems to stay compliant and profitable.
1. Why Chargebacks Hurt More in Europe
European acquirers, under PSD2 and EBA guidelines, monitor chargeback ratios monthly. Exceeding limits can trigger:
- Account holds or termination
- Higher rolling reserves
- Delayed settlements
💡 KunnectPayments ensures you stay well below EU acquirer risk thresholds.
2. Common Chargeback Triggers
- Insufficient transaction proof
- Misleading billing descriptors
- Recurring billing disputes
- Delayed refunds or delivery
- Unauthorized transactions
💡 We help merchants create clear billing descriptors and strong transaction documentation to prevent disputes.
3. KunnectPayments’ Chargeback Control Framework
Our in-house system integrates prevention, detection, and recovery:
- Real time chargeback alerts
- Automated representment (dispute) filing
- Fraud scoring & pre authorization screening
- Analytics dashboard tracking win/loss ratios
💡 Merchants using KunnectPayments reduce chargebacks by up to 60% within 3 months.
4. Acquirer Relationship Management
We act as your intermediary, negotiating with EU acquirers to:
- Reduce rolling reserves
- Restore paused accounts
- Improve MID stability through consistent performance
Conclusion
Chargebacks are inevitable, but their impact isn’t. With KunnectPayments, you gain control, visibility, and leverage, transforming risk into stability.
Partner with KunnectPayments for smarter chargeback prevention and long term acquirer trust.
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