What is Wero?

As iDEAL gives way to Wero, merchants face a major shift away from guaranteed payments. Learn how the new European standard makes chargebacks easier and what steps you must take to protect your revenue.

If you run a webshop in the Netherlands, you know that iDEAL is the dominant force because it is simple, ubiquitous, and safe, but the era of this trusted payment method is officially coming to an end to make way for a new European standard called Wero. This transition is not merely a rebranding exercise; it represents a fundamental change in how Europe pays, replacing fragmented local solutions with a unified digital wallet that promises seamless international selling while introducing a new set of rules regarding disputes that every merchant needs to understand.

What is Wero?

You can think of Wero as the European answer to Visa, Mastercard, and PayPal. Currently, the payment landscape in Europe is divided, with the Dutch using iDEAL, the Belgians using Payconiq, and the French using Paylib. This division has made it difficult for European businesses to compete with the major American card networks, so the European Payments Initiative created Wero to fix this. It is a new digital wallet supported by major banks including ING, Rabobank, and ABN AMRO that aims to build a single and unified payment standard for the entire continent. For the shopper, Wero connects directly to their bank account and functions like a modern digital wallet where money moves instantly at any time of day. It allows a Dutch customer to pay a French merchant as easily as a local baker and is designed specifically for mobile use, such as scanning QR codes and switching between apps.

The shift from guaranteed funds to customer protection

For years, the best thing about iDEAL for merchants was the finality of the transaction. When a customer paid with iDEAL, it was essentially a digital bank transfer where the money was yours immediately. If the customer changed their mind later, they could not simply cancel the payment; they had to ask you for a refund directly. Wero is different because the banks need to offer a level of protection similar to credit cards to convince consumers to switch. This means Wero is introducing a formal dispute mechanism. Unlike iDEAL, where a payment is irreversible, Wero will allow customers to dispute a transaction directly through their banking app if something goes wrong. This introduces a critical change for your finance team regarding the risk of fraud.

Understanding the new fraud landscape

With the safety net of irreversible payments gone, the burden of proof shifts to you. The primary risk here is not criminals hacking accounts, but rather logistic fraud and the chargebacks that follow. When a customer can easily dispute a charge because they claim the item did not arrive, you face specific headaches that did not exist before.

The most common issue is logistic fraud, often called friendly fraud. This occurs when a legitimate customer makes a purchase and receives the goods but files a dispute claiming they did not. Under iDEAL, a customer claiming they never received an item had to negotiate with you directly, but under Wero, they can simply initiate a dispute via their bank. This includes variations like the empty box claim, where the customer admits the package arrived but claims the product inside was missing, or the delivery denial where they claim the package never arrived despite GPS data saying otherwise.

These disputes lead to the chargeback mechanism, which is the financial tool used to enforce these claims. If a customer wins a dispute, the bank forcibly reverses the transaction. This is costly because you do not just lose the sale amount and the cost of the goods, but you are often hit with a separate fee by the payment processor for having a dispute filed against you. Furthermore, if your store receives too many chargebacks, payment processors may view your business as risky, which can lead to higher processing fees or even account suspension.

What should you do?

The transition to Wero means you need to move from a passive payment collection strategy to an active dispute prevention strategy. Since you can no longer rely on the payment being final the moment it is made, you must ensure your logistic paper trail is undeniable.

The first step is to upgrade your proof of delivery. Standard tracking numbers may no longer be sufficient for expensive items, so you should switch to shipping methods that require a signature or a photo upon delivery. This serves as your primary evidence if a customer claims they never received the package. You should also ensure your online retail platform automatically syncs tracking information to the payment provider if possible. If a dispute is raised, having the tracking link immediately available to the bank can sometimes resolve the issue automatically without your intervention.

Beyond logistics, you need to refine your product descriptions and customer service. A common reason for chargebacks is the claim that the item is not as described, so review your catalog to ensure photos are realistic and specifications like size, material, and color are precise to leave no room for ambiguity. Finally, make customer service the easiest path for your buyers. Disputes often happen because a customer feels ignored, so make sure your contact information is prominent and your response times are fast. If a customer knows you will fix a missing package issue quickly, they will not feel the need to involve their bank.