Don’t Fall for Common Chargeback Myths
Chargebacks are every business's nightmare. Because they are dreaded, they have a bad reputation and have sparked many myths.
Don’t let common chargeback myths scare you. There is a way to manage these financial setbacks.
Myth #1: PayPal Disputes are a Lost Cause
Many merchants have come to fear PayPal chargebacks. PayPal has its own unique system for managing transaction disputes, and merchants have a difficult time understanding what is expected of them.
A widely believed myth is that PayPal favors the consumer, meaning merchants shouldn’t bother with representment. However, it’s advisable to contest chargebacks if there is evidence that disputes the cardholder’s claim and the representment process will yield a profit.
Myth #2: It’s Impossible to Stop Chargeback Fraud
A determined criminal is challenging, but that doesn’t mean you can’t reduce your risk of becoming a victim.
There are several chargeback prevention steps you can take to head off friendly fraudsters. By being proactive, you can stop illegitimate chargebacks from happening.
Download our new eBook. It has 35 unique suggestions for preventing chargebacks. Suggestions include:
- Using the most effective fraud detection tools
- Reviewing transactions that raise a red flag
- Utilizing delivery confirmation as an act to deter friendly fraud wannabes
Myth #3: You’ll Lose Card-Not-Present Chargeback Disputes
If you act in a timely fashion and have the essential documentation, it is entirely possible that you will win your card-not-present chargeback dispute.
Of course, there are certain things that affect the likelihood of success. Partnering with an expert can greatly improve your chances of winning these disputes. Contact Chargebacks911® to understand where we can help your business.
Myth #4: Winning Disputes Reduces the Chargeback Ratio
This answer is more bitter than sweet. While it is certainly beneficial to recover lost revenue, a successful chargeback dispute doesn’t improve the chargeback-to-transaction ratio.
Once a chargeback has been issued, the ratio is impacted. Excessive chargeback levels can threaten the business’s longevity.
Myth #5: A Signed Receipt is the Only Way to Win
You don’t have to have a signed receipt to win a chargeback dispute (though it’s certainly helpful). In fact, your compelling evidence can include things like photographs, emails, delivery confirmation, or past transaction receipts.
[Tweet "The fear and loathing of chargebacks has sparked many myths. Can you tell fact from fiction?"]Defeat the Myths
Misinformation abounds in the payment industry. Myths about chargebacks are founded in the merchant’s fear of the unknown and the devastating ramifications of these financial setbacks.
If you have been deceived by inaccurate chargeback information and want to get back on the right path, contact us today. We will be happy to help you sort out the fact from fiction—and put solid chargeback management practices into place.
