LatamList – dLocal, a cross-border payments platform, launched a new chargeback protector to combat online fraud. Since the start of the COVID-19 pandemic, there has been a sharp rise in fraud-related chargebacks globally.
dLocal uses a single API platform to complete payments for local merchants in each country. Over 450 global e-commerce retailers, SaaS companies, travel providers, and online marketplaces currently use dLocal to process their payments. Customers include Booking.com, Didi, DropBox, and TripAdvisor.
In response to increased online fraud, dLocal launched its new service in tandem with dLocal Defense, a fraud-detection module.
Chargebacks occur when a business has to repay a customer following a claim that the purchase was fraudulent. With Chargeback Protector, dLocal assumes the chargeback risk and guarantees merchants free fraudulent chargebacks in exchange for a localized, customized fee.
“Chargeback Protector helps merchants maximize conversions, boost revenues, and penetrate markets that would otherwise carry a higher risk of chargebacks. This is particularly vital at the moment because the pandemic has increased the amount of chargebacks for merchants,” said Bruno Spagnuolo, Head of Fraud Prevention at dLocal.
The Chargeback Protector service reduces the time and cost of dealing with online fraud through its automatic system. The system also allows businesses to have more consistent and predictable cash flow through the reimbursement scheme.
“This solution eases one of the biggest concerns for both merchants and end-users, enabling a more pleasant, seamless, and efficient e-commerce experience for all stakeholders,” Spagnuolo explained.
Chargeback Protector is available to clients as an add-on feature to dLocal’s main payments platform.