Chargebacks – Prevention Beats the Cure Any Day

 By John Banks, Sr. Director, Product Management

 

Operating a subscription-based business imposes unique challenges on different types of businesses.  For our customers who often deal with a high volume of transactions, one of the biggest issues they run into is chargeback management.

 

“Chargebacks” are the reversal of a prior sale transaction between a merchant and a consumer when a consumer contacts their credit card issuing bank to dispute the charge. 

 

Subscription merchants have the most significant challenge as a single customer can easily dispute multiple transactions through a single phone call to their card issuing bank, quickly increasing chargeback volumes.  That’s why I often hear questions like: “Should I fight the chargeback?” and  “What happens if I don’t fight chargebacks?”

 

There are plenty of reasons to invest in managing the chargeback process, but what if you could preventthe chargeback from ever being created?  It’s this line of thinking that has been driving our new partnership with Verifi, which we announced this week.

 

Preventing chargebacks can bring huge cost savings:

 

• Merchant banks assess chargeback fees per chargeback received; sometimes greater than $50 per individual chargeback
• Card associations (Visa, MasterCard, American Express, etc.) maintain monitoring programs to monitor EVERY merchant’s chargeback volumes and ratios
• Merchants with excessive chargebacks will be fined (as much as $100 per chargeback) and potentially   disqualified from accepting credit card payment

That’s why I’m so excited about our new integrated solution that combines our Z-Payments solution with Verifi’s payment management technology.  Together, we help clear one of the biggest roadblocks for high-volume businesses moving into the Subscription Economy.

 

 

Zuora Launches Z-Payments 2.0 at Innovate09 - Built with PayPal X

by K. V. Rao

In our last post, we mentioned that we’d be launching our next product at PayPal’s first developer conference, Innovate09. Today we’re thrilled to announce Z-Payments 2.0 – the first online subscription commerce solution built with PayPal X.

You may recall that Zuora first launched Z-Payments back in October of last year, and announced a strategic partnership with PayPal. The first complete payment solution for subscription businesses, Z-Payments 2.0 enables subscription companies to manage the entire recurring payment lifecycle, accept any form of payment including traditional payments, like check or wire transfer, handle payment exceptions, and more. In short, Z-Payments is how subscription businesses get paid.

Today, the relationship between Zuora and PayPal takes another step forward, as Z-Payments 2.0 leverages the Adaptive Payments capabilities in PayPal X to offer Zuora’s customers even greater flexibility in their payment operations.

We’re thrilled to be held up as an example of a successful business built with PayPal’s X platform (we’re told that Osama Bedier, PayPal’s VP Product Development, is going to mention us in his keynote) and we’re excited to see what other innovative products will be launched at Innovate09.

To read the full press release, click here.

To stay up to date with the Zuora team, follow us on Twitter @Zuora.

To hear what all the fuss is about, check out the Tweets about the event (#changehowwepay)