US Chargebacks
$125B
US Chargebacks
Businesses
Protect yourself from fraud.
TRUECard Shield is a unique merchant card fraud solution backed by commercial insurance coverage that protects merchants from credit card chargeback losses associated with both criminal and “friendly”/ “first party” fraud.
Friendly Fraud
Impact of Friendly/First Party Fraud on U.S. Merchants
The Impact of Friendly Fraud
The credit card industry estimates that merchants experience chargeback losses that approximate 2.3% of annual credit card sales transaction volume. This is an average estimate across all industries – merchants competing in high risk industries experience higher chargeback rates. In 2023, consumers filed chargebacks in credit card sales transactions totaling approximately $65.2 Billion. Visa reported that approximately 75% of the chargebacks filed were cases of friendly fraud and first party misuse. This has become the primary cause of dispute volume growth where recent statistics disclosed by Mastercard indicate a 32% year over year increase in such chargebacks.
Businesses offering recurring billing (e.g., streaming services, gyms, or SaaS platforms) often encounter chargebacks due to forgotten subscriptions, disputes over billing terms, or unauthorized charges.
Subscription Services
E-Commerce and Retail stores often have shoppers who cannot afford their purchases and routinely charge them back and keep the garments they purchased, claiming unauthorized transactions and delivery disputes (e.g., “item not received” claims).
E-commerce/Retail
Airlines, hotels, and vacation booking services frequently face chargebacks from customers disputing charges for canceled trips, dissatisfaction with services, or fraudulent bookings.
Travel and Hospitality
Fear of Fraud
“With competing screening software, the cure is often worse than the chargeback – merchants lose top line sales and customers due to Fear of Fraud.”
In many cases, the cure for minimizing chargeback losses is more damaging to the merchant than the actual losses associated with the chargebacks. The merchant card industry estimates that merchants lose $443 Billion in lost sales annually due to “fear of fraud”, which occurs where otherwise legitimate card sales transactions are flagged and declined due to false positives generated by security screening software. Screening software is sold as a chargeback solution to merchants by various security vendors. Beyond the instant loss of revenue associated with the declined card sales transaction, the industry estimates that 32% of customers whose credit card transactions are declined, will never purchase anything from that merchant again.
The TRUECard Shield Advantage
3 KEY BENEFITS
#1
The Lowest Cost Solution.
TRUECard Shield is the lowest cost chargeback solution in existence ($100,000 monthly credit card sales example).
| No Chargeback Protection: | $2,300 Monthly Cost/Loss (2.3% of CC Sales Volume) |
| Stripe/Square Guarantee: | $400 Monthly Cost (4% of Card Sales Volume) |
| TRUECard Shield: | $75 Monthly Cost (Flat Rate per $100,000 in card sales volume) |
#2
Broader Protection
TRUECard Shield covers credit card sales transactional losses associated with both criminal and friendly fraud. Most competitors cover only those chargeback losses arising from criminal fraud.
#3
Transparent & Simple
Straightforward flexible fee structure. Monthly fee adjusts to monthly card sales volume which is ideal for seasonal businesses. No hidden fees or surcharges. No requirement to use a specific card processor.
Features
Key Coverage Features
Covered Transactions. Chargeback loss sustained by the Merchant as a result of a criminal or consumer friendly fraudulent act with respect to a qualified card sales transaction, subject to the Exclusions, Coverage Limits, and applicable Deductible provisions of the Coverage Agreement.
Coverage Cost. $75 per month per $100,000 in insured card transactions adjustable during the Term based on monthly volume, plus one time Acceptance Fee of $150.
Coverage Term. 12 month standard term, subject to cancellation by Insured or TRUECard in accordance with applicable State guidelines for termination. “Evergreen” auto renewal feature.
Coverage Limits. Aggregate: $5,000 per month in covered transactions.
Deductible. $50 per month per $100,000 in covered transactions.
Exclusions. (a) Visa Mastercard Mediation and Appeals Fees; (b) Sales & Use Tax; (c) Merchant Convenience Fees; (d) Gratuities; Illegal Sales Transactions.
Standard
- Invoices/Estimates
- Online Payments
- Projects and Time Sheet
- Recurring Transitions
- Client Portal
Premium
- Invoices/Estimates
- Online Payments
- Projects and Time Sheet
- Recurring Transitions
- Client Portal
Professional
- Invoices/Estimates
- Online Payments
- Projects and Time Sheet
- Recurring Transitions
- Client Portal
Our Blog
Latest News & Stories
Read some stories of company owners and news about the chargeback epidemic.
Fighting Chargebacks
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Chargebacks: The $125 Billion Problem Affecting Every Business
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Top 10 Frequently Asked Questions
1. What is the cost of TRUECard Shield?
The cost of TRUECard Shield is $75 per $100,000, or any fraction thereof, in credit card sales per month; it varies depending on credit card sales volume each month so you do not pay a fee for what you don’t need. This fee structure is very beneficial to seasonal businesses.
1. What is the cost of TRUECard Shield?
The cost of TRUECard Shield is $75 per $100,000, or any fraction thereof, in credit card sales per month; it varies depending on credit card sales volume each month, so you do not pay a fee for what you don’t need. This fee structure is very beneficial to seasonal businesses.
2. Is TRUECard Shield only available to merchants who are processing merchant card transactions on designated POS or payment processing platforms?
No, TRUECard Shield is available to any merchant who is processing credit card sales transactions. There is no requirement that the merchant process these transactions on a designated POS or payment processing platform.
3. Is TRUECard Shield guaranteed or backed by insurance?
TrueCard insures 100% of its “Chargeback” obligations under TRUECard Shield with a commercial policy of insurance. This is intended to provide Merchants who subscribe to the TRUECard Shield program with an additional “Peace of Mind”.
4. Do any competitors offer Credit Card Chargeback protection to Merchants?
Some online security companies offer screening software that is used to flag and reject potentially fraudulent credit card transactions in an effort to reduce the Merchant’s risk of chargeback. Costs for these solutions vary significantly across industries and by Merchant.
5. How do I file a claim under TRUECard Shield?
The process is simple, Merchant’s complete and submit a Claims Form related to the Chargeback. TRUECard Shield takes it from there.
6. Are there limits on the Chargeback protection offered under TRUECard Shield?
Yes. $5,000 per month, subject to a monthly deductible that is based on $50 per $100,000 in credit card sales volume for the month, per claim. For example, a Merchant with $1M in monthly sales will have a monthly deductible of $500.
7. What is the length of the TRUECard Shield Agreement?
The TRUECard Shield Agreement is 12 Months.
8. Are there any States where TRUECard Shield is not available?
No. TRUECard Shield is available to Merchants located in all US States and territories.
9. Are there any exclusions from protection under TRUECard Shield?
Yes. TRUECard Shield excludes Mastercard-Visa mediation and appeals fees, sales and use taxes, convenience fees charged by the merchant, and gratuities.
10. How long does it take to process a claim?
The time varies depending on the facts and circumstances of each claim. We will be happy to provide responses to specific fact patterns. Feel free to call us.
Contact Us
Send Your Message
Please feel free to reach out to us if you have any questions or just want to learn more about how TRUECard Shield can help your business.
Location
Kansas City, MO, USA.
Phone Number
(888) 603-9955
Email Address
Office Hours
Mon – Friday: 9.00am – 6.00pm Central Time