How Verkada Helix Helps Retailers Combat Chargeback Fraud
Leah Friedman
Head of Content
Retailers already impacted by shrink have a secondary foe on the rise: chargebacks. Transaction disputes have become single-click interactions in banking apps, making them easier to pursue than ever – leaving businesses increasingly vulnerable to the threats posed by both fraudulent actors and forgetful (or frustrated) customers. A report from Mastercard’s Ethoca group indicates that “by 2026, global chargeback transaction volumes will reach 337M, a 42% increase from 2023 levels.”
Given the ease with which chargebacks can be initiated (and with a low burden of proof on the part of the initiator), this behavior results in significant financial losses and damages merchant reputations and customer relationships by asking banks to act as intermediaries when the businesses themselves may be able to quickly resolve disputes instead. That, however, assumes the reason for a chargeback is to resolve a real instance of customer dissatisfaction, while Chargeflow’s State of Chargebacks Report for 2024 indicates that 80% of chargebacks are classified as “friendly fraud” – or consumers who dispute charges without a valid reason.
Understanding the nuances of this issue and implementing effective strategies for prevention and management are crucial for maintaining a healthy bottom line and fostering trust with your customers.
Leveraging advanced technologies for fraud detection is becoming increasingly necessary. This is where solutions like Verkada Cameras + Helix can play a pivotal role. Available to all Verkada camera customers, Helix powers investigations by providing businesses with an intelligent interface designed to enhance operational oversight. By integrating video context with transaction records, businesses can quickly identify and investigate suspicious activities, making contesting fraudulent chargebacks with concrete evidence easier.
Leveraging Helix for Physical Retail and eCommerce Transaction Disputes
Integrating Helix into your chargeback management strategy can provide a cutting-edge advantage for both brick-and-mortar and online retailers. By correlating transaction data with video evidence, merchants can swiftly identify discrepancies in chargeback claims, such as proving that goods were delivered or that services were rendered as agreed. This level of proof can significantly bolster a merchant's case in disputing friendly or truly fraudulent chargebacks, protecting revenues, and enhancing security protocols.
“The long-term benefit of Helix is with fraud investigations. Rather than a lengthy and expensive chargeback process, it now takes seconds to dispute chargebacks.” – Chris O’Dell, Chief Technology Officer of Mike’s Bikes.
Adding Video Context to In-Person Transaction Data
Helix offers physical retail spaces a number of proof points in chargeback investigations and proactive defense. In the event of a chargeback claim, this integration allows for quick identification of the transaction in question and retrieval of video footage to verify the circumstances of the purchase.
Helix combines data from Verkada Cameras and point of sale (POS) transactions, making it possible to determine what happened during each transaction. For instance, if a customer claims that they did not buy an expensive item, Helix can pinpoint the exact moment of purchase captured on video, providing irrefutable evidence that the goods were, in fact, purchased.
Time is of the essence when disputing a chargeback. Traditional methods of sifting through video footage can be time-consuming and inefficient. Helix's powerful search capabilities allow businesses to quickly locate relevant video segments based on specific criteria, such as date, time, transaction number, and the types of items sold. This efficiency drastically reduces the time needed to gather evidence for chargeback disputes.
Enhanced Security and Fraud Detection
With video evidence supporting transaction records, businesses are in a much stronger position to dispute fraudulent chargebacks. Presenting clear video evidence to banks or credit card companies significantly increases the likelihood of a favorable outcome for the merchant. This evidence can demonstrate the legitimacy of transactions, show who the purchaser was, or confirm the condition and delivery of goods.
If you find that a specific customer has repeatedly initiated chargebacks, use Verkada’s Face Detection to set them as a Person of Interest (POI) in Command and get alerted instantly when they return to the property so you can take extra security measures to help prevent a future chargeback.
Adding Video Context to Order Fulfillment Data
Fraudulent chargebacks don’t only occur in physical retail spaces; resolving disputes over online orders can be more difficult considering the gap between when an order leaves the distribution or fulfillment center and when it is delivered to the end customer. While shipment tracking can confirm that something was delivered, it cannot confirm that a shipment correctly included what was ordered when it went out the door, or if it was tampered with during the delivery process.
It’s incredibly easy for a customer to claim that they received a delivery with broken, incorrect, or missing items, so a Cameras + Helix solution at a fulfillment center can aid in finding out what, if anything, happened.
Install cameras at strategic points within the fulfillment center, especially where items are packed and prepared for shipment. This provides comprehensive coverage of the packaging process. Verkada's cloud-based storage makes it easy to access historical footage, enabling businesses to retrieve specific video segments related to individual orders.
Integrate Helix with your order management system (OMS) to automate the tracking of each order's packaging process. In the event of a dispute, such as a customer claiming an item was missing or inadequately packaged, businesses can quickly pull up the relevant video evidence. Showing clear footage of the item being properly packed and sealed offers convincing evidence of fulfillment.
A Powerful Partner in Combating Chargeback Fraud
Adding Verkada Cameras + Helix into chargeback fraud management practices offers businesses a powerful tool to combat this growing threat. By providing a seamless way to correlate transaction data with high-quality video evidence, Helix not only aids in efficiently resolving disputes but also enhances overall security postures.
