Subscription Merchant Resolves Mitigation Leakage

The challenge

Dispute mitigation services like Verifi and Ethoca are invaluable for keeping chargebacks down, but like any technology they can experience disruptions that are hard to spot. For resource-constrained merchants in the medium- and high-risk space, finding a drop in mitigation coverage, or leakage, usually means pivot tables and home-grown reports that can’t handle large, conflicting data sets.

The stakes were high: the merchant was pursuing a new payment processing relationship, where demonstrating compliance in every corner of the business was key to securing it.

How it was detected

The merchant used Slyce360’s Rules Builder to set a custom rule that notified the payments team when a selected card brand’s chargebacks passed a threshold over a rolling 30-day window, across several processing venues. When the rule triggered, Slyce360 generated a notification and an automated Insight Report on the leakage.

The Insight Report pointed to a specific issuer, one of the top five payment issuers in the U.S., but only at one acquiring venue. Benchmark comparisons in Slyce360’s dashboards confirmed a significant gap in the ratio of chargebacks to mitigated disputes at that venue versus historical data from other venues.

The resolution

For immediate relief, the merchant migrated new customers from the affected venue to one where mitigation was working as expected. For a permanent fix, it worked with its dispute mitigation representative, armed with Slyce360 data, to resolve the issue between the provider and the issuer.