8 Best Chargeback Protection Software Solutions

This article is about the best chargeback protection software programs that can help you:

• Prevent chargeback
• Fight chargeback
• Detect fraud

We will discuss not only this list but also the following: 

• The two types of chargeback protection software programs  
• The best options in the market 
• What features to look for in a chargeback protection software program

In the end, you will have several choices to help you manage the financial help of your business, not only for chargebacks but for other facets like account protection and abuse prevention.  

Top 8 Chargeback Protection Software Solutions

Here  is a quick snapshot of the best chargeback protection software  programs: 

1. Chargeback.IO – best overall chargeback prevention tool 
2.  Riskified – best for fraud prevention
3.  Kount – best for fraud detection and legal compliance
4. SHIELD – best for device-first fraud detection
5. SEON – best for fighting money-laundering
6. Sift – best for streamlining the dispute process
7. Chargeflow – best for chargeback recovery
8. Chargebacks911 – best for reputation repair

8 Best Chargeback Protection Software

1. Chargeback.IO – best overall chargeback prevention tool 

Chargeback.IO is a true chargeback prevention tool. It reads through your transactions and detects if one can potentially result in a chargeback. 

In addition, it acts quickly before a dispute turns into a chargeback. Once a customer files a dispute, the system gets a notification and then sends that notification to you so you can take action. 

Chargeback.IO Features

• Auto-Refund – you can set the program in a way where it automatically sends a refund if a customer disputes a transaction. This way, you no longer have to deal with manual work, especially chargeback paperwork. 
• Integrations – you can integrate the Chargeback.IO system with PayPal, Braintree, Recurly, Stripe, and Chargebee. Overall, it has six integration options.   
• Manual Refund – if you are using a payment processor that has no integration option with Chargeback.IO, you can still use it to process refunds manually. 

Chargeback.IO Pros 

• You can act on a dispute before it turns into a chargeback
• You only pay for every alert; no monthly fees
• Multiple integrations

Chargeback.IO Cons

• Has no chargeback management system or AI

Chargeback.IO is a true chargeback prevention software. Once the system sends you a dispute notification, your next move is to refund this customer. Once a refund is made, no chargeback will happen anymore. 

2. Riskified – best for fraud prevention

Riskified is an AI-powered tool that blocks fraudulent transactions. In addition to fraud prevention, they have systems that help merchants to reduce abuse of their promotions.

Riskified Features

• Fraud Prevention – this feature determines if a transaction is potentially fraudulent. It will not allow a payment to go through once it has determined that it is risky. Since no transaction happened, no chargeback will exist. 
• Chargeback Management – if a chargeback ever falls through the cracks, the system offers a platform where you can manage the chargeback. This service makes it easy for you to view the dispute, get an overview of the transaction, get details, and fulfill the chargeback requirements to fight it.
• Automation – the platform has a built-in editor for writing your chargeback response. It automatically creates a dispute resolution letter. You can add images and other evidence if you need to. 

Riskified Pros

• Helps your business increase profit
• Reduces chargeback because of fraud prevention
• You can use the same platform to manage chargebacks

Riskified Cons

• The pricing is not transparent.

Riskified also offers a way to protect your consumer accounts, especially so since you are processing and keeping customer data. Apart from blocking malicious attempts to log in to your customer’s accounts, you can also set the security system to block fake accounts. 

3. Kount – best for fraud detection and legal compliance

Kount is a fraud prevention tool that eventually results in fewer chargeback cases. What it does is collect information once a person goes to your website. Kount then analyzes the data and determines if the transaction is potentially fraudulent or not. 

Kount Features

• Fraud Detection – if a transaction is potentially fraudulent, Kount does not let the purchase go through. The decision is based on a proprietary safety score that they use to measure if a transaction is legit or not. 
• Chargeback Management – you can manage disputes from the system. There is a response builder where you can build a template of information that the system will fill out as a response to the dispute. 
• Automation – the automation system makes it possible to prevent, fight, and also analyze chargebacks. You will automatically receive alerts for disputes, refunds, order validations, and more. 

Kount Pros

• Detects fraud before it happens
• You can use it on non-traditional payment apps like Venmo, Cash App, or Square.
• There is protection for digital wallets and accounts. 

Kount Cons

• The full suite costs $1,000 monthly.

Kount offers a full suite of tools that prevent chargeback, detect fraud, and manage chargeback. If you need more tools, they also have AI software for identity verification and consumer account protection. 

4. SHIELD – best for device-first fraud detection

SHIELD is a multi-faceted financial program that helps detect fraud, block potentially fraudulent transactions, and protect consumer accounts. What it does differently is it identifies users or buyers by their devices.  

SHIELD Features

• Device Intelligence – SHIELD identifies consumers based on their purchase patterns and from what device they use. If a card is stolen and is being used on a new device, this transaction will not go through. 
• Fake Accounts – the system can identify fake accounts and block them. This feature also includes security systems that prevent account takeovers.
• Identify Fraud – chargebacks happen if someone gets ahold of another person’s card details. As a merchant, you can get yourself protected from this type of chargeback since SHIELD will tell you who you are dealing with—fraudster or legitimate consumer.  

SHIELD Pros

• Prevents fraudulent transactions at a device level
• There are other features like bot attack management
• You can use the system to protect consumer accounts 

SHIELD Cons

• No automated chargeback management system

SHIELD leans towards fraud prevention and identity verification. It will not automatically take action for disputes and chargebacks but rather do its best to prevent a fraudulent transaction from occurring.

5. SEON – best for fighting money-laundering

SEON does not only protect you from fraud, but it also protects you from becoming part of a money-laundering scheme. Like the previous program, SEON uses artificial intelligence to analyze millions of data and draw conclusions from them.

SEON Features

• AI Insights – the AI of SEON detects activities and provides a risk score for several parameters. For example, it analyzes if the consumer’s cookie matches a fraudulent pattern, or if the IP address was already flagged in the past as a fraudulent IP.
• Compliance – merchants that accept payments must comply with various data, financial, and privacy laws. SEON ensures that you can consolidate your compliance requirements in one platform.
• Fraud Prevention – the system uses a huge database of fraud detection metrics to decide if a purchase is potentially fraudulent. It will block the transaction if it thinks the risk is high.

SEON Pros 

• It has multiple functions other than fraud prevention
• It can help you prevent money-laundering schemes  
• You can secure your customer onboarding with digital footprinting, identification, etc. 

SEON Cons

• Too complicated to use

SEON is best for merchants in the i-Gaming industry where fraud has a massive likelihood of happening. It does not have integration options, so you would have to code it inside your website or application manually.

6. Sift – best for streamlining the dispute process

Sift is an AI-powered decisioning tool. Its basic function is to spot potentially fraudulent purchases and prevent them from happening. Sift mainly provides this level of fraud-detection support to e-commerce, fintech, travel, and delivery companies. 

Sift Features

• Dispute management – you can manage disputes from inside the Sift platform; this is a console where you can customize your tags, filters, and other data to choose how you want to manage your disputes.
• Prioritization – you can set the system in such a way that you can prioritize high-value chargebacks. The software will notify you of this so you can act quickly. 
• Revenue protection – you can create templates and streamline how you write responses to chargebacks. In addition, you can block potential chargebacks to keep disputes low.

Sift Pros

• Multiple programs for different financial needs
• They provide services to protect against content scams
• They have a chargeback management system

Sift Cons

• Pricing is not available. 

Sift does not only provide services for fraud detection and chargeback management. You can use it to prevent account takeovers and protect your customers and users. It also has systems in place that will help you prevent policy abuses and detect digital wallet fraud.  

7. Chargeflow – best for chargeback recovery

Chargeflow is not exactly a chargeback prevention software, but rather a chargeback management program. It uses a science-based approach to win a chargeback against you. By science-based, what they mean is they analyze data and win rate and use the result of that analysis to help you create a chargeback response.  

Chargeflow Features

• Automatic Pulling – once integrated with your system, it automatically pulls disputes and notifies you. This data pullout happens in real time. 
• Integration – you can integrate Chargeflow with multiple payment processing systems like AfterPay, WooCommerce, Klarna, Chase, Braintree, Magento, BigCommerce, and more. 
• Automated Response – once a dispute is pulled, the system will automatically attempt to resolve it. It will create a response letter and send it to the bank or the appropriate party. You no longer need to do any kind of manual work. 

Chargeflow Pros

• Multiple integration options
• Fully automated chargeback resolution system
• End-to-end fraud solution is available

Chargeflow Cons

• You would pay 25% of the chargeback amount if you won the dispute.

Chargeflow is great if you do not want to spend a lot of money on human labor for processing chargebacks. The cost they charge is high compared to other providers. 

8. Chargebacks911 – best for reputation repair

Chargebacks911 offers multiple solutions to problems of fraud and chargebacks. Their main focus is to address invalid chargebacks that lead to a bad merchant reputation. 

Chargebacks911 Features

• Prevention – they do have a feature where the system detects potential fraud. 
• Presentment – this is the strength of the software. The machine will identify the source of the chargeback and address the issue. Because of this, you can prove that the fraudulent transaction should not be blamed on you. 
• Merchant Onboarding – once you avail of the service, they will provide merchant training or onboarding, the purpose of this is to help you identify which steps in the payment process you may miss, or what needs to be done to mitigate chargebacks. 

Chargebacks911 Pros

• Lots of resources you can read to learn more about chargebacks
• The system can prevent and fix chargebacks
• The AI finds the root cause of the chargeback to prove that it is invalid

Chargebacks911 Cons

• Pricing is not available.

Chargebacks 911, commonly referred to as CB911, does not integrate like typical software programs. Despite that, it is highly flexible and compatible with existing payment systems.

What is Chargeback Protection Software?

A chargeback protection software program prevents a chargeback from happening. Over the years, the term has also become synonymous with chargeback management software programs.

It is important to note that there is a difference between the two. The word “protection” means that something must not penetrate. In the case of a chargeback, protection software must therefore be proactive. It should “not allow” a customer to file a chargeback.   

On the other hand, a chargeback management software program is reactive. The chargeback has already happened, and now the seller has to comply with legal and financial expectations. 

Chargeback management entails the following: 

• Responding to the claim
• Writing a long dispute letter of explanation
• Gathering facts and evidence to support the case

It is a lot of work, with a success rate of about 32% only. It means that merchants who received a chargeback case win these cases about 32 cases out of every 100 cases. 

Prevention is always better than cure. Once a consumer files a chargeback, this goes into your record as a merchant, and you will not like its consequences. 

Today, chargeback prevention and chargeback management are terms used interchangeably. In our list, we will focus on the former and add a few of the latter. 

Summary: There is a difference between “protection” and “management.” The former prevents a chargeback from happening, while the latter acts on a chargeback that already exists.

Features to Look for in Chargeback Protection Software

Not all chargeback prevention software programs work the same. In this section, I will provide you with a list of features you need to look for. These features will focus on how they can help you prevent chargebacks and manage the financial health of your business.

1. Detection and Prevention

The first thing you want from a chargeback prevention software is the capacity to identify a potential chargeback. Why? It is because you do not want a chargeback to exist, ever. 

Once a customer has filed a chargeback, you will face a lot of headaches in managing it. In addition, it does not make you look good in the eyes of the bank, credit card company, or payment processor. 

What you want is a program, particularly artificial intelligence, that can assess if a purchase is likely to end in a chargeback. 

2. Integrations

There are many payment processors you can choose from. However, not all chargeback prevention programs can connect with these payment processors.

The most common payment processors in use today are: 

• PayPal 
• Braintree
• Stripe
• Shopify payments
• Recurly
• Chargebee

Choose a chargeback prevention software that can integrate with these, especially PayPal, Stripe, and Braintree. 

Integration means that the chargeback prevention software will have access to the payment processor’s system. The chargeback prevention program will use the data from the payment processor to do its job. 

3. Automation

Automation means you no longer need to do any manual work. Automation systems are plug-and-play. They will send you notifications and complete business processes without your intervention. 

Some programs require ongoing management. It means that you have to log in, look at your dashboard, and then review the transactions. From this dashboard, you need to decide which ones are likely to end in a chargeback.

Pick a fully automated software program like Chargeback.IO that is capable of working independently. With this tool, you only have to spend a few minutes in integration, and then it will run on autopilot. 

4. Alerts

Finally, you want a software program that sends alerts to your email. Some programs do not do this. What happens is that you forget to log in to your account and do not see a chargeback or dispute, and you lose the case.

An ideal program should send you an alert not after the chargeback is already made, but before. The alert should be sent to your email because that is the first thing you check every day. Once you have the notification, you can act on it accordingly.

FAQ: Best Chargeback Protection Software Programs

How can I protect myself from chargebacks?

The best protection is fraud prevention. You can use a software program like Chargeback.IO that can alert you if a dispute has been filed.  

What is chargeback management software?

It is a software program that can detect fraud, block a potentially fraudulent transaction, and also reply to chargeback disputes. Some can automatically issue a refund if you programmed them that way.    

What is the best way to do a chargeback?

A merchant cannot do a chargeback. Only customers can. 

How much does chargeback protection cost?

It depends. Charback.IO charges per alert, while others charge as much as $1,000 monthly.