Fraud teams protecting against chargebacks on fraudulent e-commerce transactions face a key choice: a solution with a chargeback guarantee (sometimes called chargeback insurance) or chargeback protection without a guarantee. The two approaches share similarities but differ in important ways. ClearSale's infographic lays out both so merchants can pick the option that best fits their company.
Fraud teams seeking protection from chargebacks on fraudulent e-commerce transactions have many options to choose from. One of the biggest decisions to make is whether to choose a solution that offers a chargeback guarantee (also sometimes called chargeback insurance), or chargeback protection without a guarantee. The two approaches have some similarities, but also important differences. Use our infographic below to better understand both approaches, so you can make the decision that’s best for your company.
Frequently Asked Questions
What is chargeback insurance?
Chargeback insurance is another name for a chargeback guarantee, a fraud protection option where the provider guarantees coverage of fraud-related chargebacks. It differs from chargeback protection offered without a guarantee.
What are the main chargeback protection options?
Merchants generally choose between a solution that offers a chargeback guarantee (chargeback insurance) and one that offers chargeback protection without a guarantee. Both aim to limit losses from fraudulent transactions but differ in how risk is covered.
How does a chargeback guarantee differ from protection without one?
A chargeback guarantee commits the provider to covering fraud-related chargebacks, shifting that risk away from the merchant. Protection without a guarantee helps reduce fraud and chargebacks but does not include that financial coverage. The approaches share similarities but have important differences.
Why does the choice between these options matter?
The decision affects how much fraud-related financial risk a merchant carries versus the provider. Understanding both approaches helps a company choose the option best suited to its risk tolerance and business needs.
Who should evaluate chargeback insurance options?
Fraud teams seeking protection from chargebacks on fraudulent e-commerce transactions are the primary audience. They weigh guarantee versus non-guarantee approaches to decide which best fits their company.
What does ClearSale's infographic on chargeback insurance cover?
The infographic compares the two approaches, chargeback guarantee and chargeback protection without a guarantee, highlighting their similarities and differences so merchants can make the decision that is best for their company.
Stop fraud before it costs you
ClearSale's AI-powered fraud prevention reviews every order and backs it with a chargeback guarantee, so you approve more good orders and fight fewer disputes.
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