The chargeback dispute process does not favor merchants. Banks and credit card companies do not need much proof to validate a claim and disputes often result in costly fees and take up time, energy and resources. Being able to resolve chargeback disputes efficiently without negatively impacting the customer experience means a business comes out on top.
Make use of available resources
Merchants struggle with managing chargebacks and adhering to all the rule changes and yet many of them do not make use of technology that provides them with solutions.
Merchants need to make use of the resources available to them when managing chargebacks. Those who make use of third-party chargeback management solutions are able to reduce chargebacks significantly. These solutions help to streamline the chargeback management process and make it much easier for merchants.
Accertify offers merchants a chance to get chargeback management software that reduces the resources needed to manage and respond to chargebacks by up to 50% percent and helps improve win rates.
Resolve disputes through the customer service department
When a customer service team is more effective, this can help to reduce the time and expense spent on chargebacks. Much of the costs of chargebacks result from the cumbersome dispute resolution process.
Fighting chargebacks can consume a fair amount of the operational budget and use up time and resources. This can take away the budget from revenue-generating departments.
Customers are not as likely to initiate a chargeback if they are able to easily resolve concerns through a customer service department. Merchants need to clearly display customer service contact information on the website and make sure that refund policies are clear and easy to understand.
A merchant has seven to 10 days to dispute a chargeback via channels used by the card brands. A customer may be persuaded during this period to withdraw a chargeback by contacting their issuer.
Know which chargeback disputes are worth fighting
It can be difficult to decide when to dispute a chargeback and when to walk away. If a customer complaint is valid, the merchant should not dispute the chargeback. However, customers do abuse the system as they know it is heavily weighted in their favor. They commit what is known as friendly fraud.
Although chargebacks are a vital mechanism to help customers get back the money on products and goods that do not arrive, are damaged, or are not as advertised, the abuse of the system is costing the industry billions every year.
The reason code classifies the type of chargeback and the reason for the dispute. Understanding this code and the required elements to dispute it is critical when preparing a dispute case.
Careful analysis of each chargeback claim is important to decide which ones are worth fighting. In some cases, merchants stand to gain a significant amount and it makes sense to follow through with chargeback representation.
Get insights into true win rates
Many merchants over-estimate their chargeback win rates. This is because they refer to their gross win rate rather than considering how many chargebacks were fought, and the fact that many consumers who abuse the system often do it again. This is known as the second chargeback rate and needs to be taken into account when calculating the net chargeback win rate.
The net chargeback win rate is the true indicator of how successful merchants are when disputing chargebacks. True win rates must be calculated by looking at the total number of disputes that are successfully represented without any subsequent exceptions. These must be divided by the total number of disputes, whether they are represented or not.