AI Chargeback Prevention

With recent technological advancements, we have seen AI-related companies pop up everywhere. While the space has proven to be highly profitable, it comes with its fair share of chargebacks.

You’ve come to the right place if you’re an AI-based company struggling with chargebacks. At CB-ALERT, we help merchants implement measures to stamp out fraud before it begins, ultimately saving their bottom line.

Key Takeaways

  • AI chargebacks are costly
  • CB-ALERT can drastically reduce your chargebacks
  • The AI industry is under extreme scrutiny

What Are AI Chargebacks?

AI business chargebacks occur when a customer decides to call their bank to dispute a transaction rather than contact the merchant. 

Why Do They Occur?

Chargebacks can occur for various reasons, such as unauthorized transactions, processing errors, or fraudulent activities. Unauthorized transactions occur when a cardholder claims they didn’t make a particular purchase, leading to a chargeback.

AI-related chargebacks typically happen for the following reasons:

  • Infidelity
  • Customer is underwhelmed by the product quality
  • Little to no customer support

Are AI Adult Chargebacks More Common Than Other Industries?

AI adult chargebacks occur more frequently than in other industries for the same reason that online dating and adult do: infidelity.

How To Prevent AI Chargebacks

Below are our top strategies for preventing chargebacks in the AI industry.

  • Fraud Prevention Tools Stay sharp and ahead of the curve using tools like 3DS2 authentication, RDR, and chargeback alerts to outsmart fraudsters.
  • Billing Descriptors: Ensure that your business name on financial statements is clear and unmistakable, like putting a bold sign on your shop for easy recognition.
  • Partner with CB-ALERT: By partnering with us, you are choosing a partner dedicated to lowering your chargebacks, ultimately saving you money.
  • Add an Extra Layer of Security: Prioritize customer authentication to shield against chargebacks and ensure each transaction is rock-solid, like adding an extra lock to your door.
  • Deliver Exceptional Customer Care: Treat your customers like royalty. Swiftly address their questions and concerns for happier customers and fewer chargebacks.
  • Extend a Helping Hand with Refunds: Offering a refund can be like extending an olive branch. 
  • Verify Customer Readiness: Before diving in, ensure your customers are financially prepared for your coaching services, like ensuring your team is ready for a big game.
  • Keep Detailed Records: Think of your records as a keepsake of your coaching journey. Document every interaction – names, orders, and conversations. They’re your safety net in case of disputes.
  • Scrutinize Every Transaction: Like checking IDs at the door, be cautious of orders from unfamiliar places or significantly higher amounts. Verify each one to prevent chargebacks.

Apply Today

Apply today with CB-ALERT to protect your AI business from chargebacks and minimize financial loss.

Below, you’ll find the details we need to kickstart the process with CB-ALERT:

  • Company name
  • Official business address
  • Descriptor for your merchant account
  • Merchant account number issued by your payment processor
  • Access to your sales system for refunds/alert resolutions on your behalf
  • The more information you provide, the better we can help you fight chargebacks.


Stamp out fraud today and stop it before it even begins. Our team understands the AI industry and the scrutiny it is under today. 

We are confident we can drastically reduce your chargebacks and deploy preventative measures.

If you partner with CB-ALERT, we can do the heavy lifting and free up the valuable time you spent fighting chargebacks so that you can manage your time and continue to grow.

We have two decades of experience in the space with an emphasis on medical ventures, and we know we can become a vital piece to the puzzle.

Below are some of the things we bring to the table at CB-ALERT:

  • Ethoca and Verifi alerts
  • 24/7 customer service
  • Transparent pricing
  • RDR
  • Visa compelling evidence 3.0
  • Gateway/CRM agnostic approach
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