Chargebacks911® Director Offers Dispute Insights for the BlueSnap Blog
Many cardholders are unaware of the difference between chargebacks and refunds. But, as Chargebacks911 Marketing Director Jarrod Wright explains in a new guest feature for the BlueSnap Blog, there is a huge difference between the two in how they impact the merchant’s bottom line.
BlueSnap is a global payments processing company that “looks at eCommerce a little differently.” The company say they are on a mission to find a better way to manage payments and conduct the customer experience. Their blog, in particular, is a high-profile resource for thousands of global merchants.
The cost of product returns is several times higher than that of chargebacks. But as Jarrod notes, the key is to examine losses by their source, not just the raw dollar figure.
“With a chargeback, you’re still losing sales revenue just like you would in a refund,” he says. “But now, the customer has no incentive to return the merchandise. That means you also lose the cost of the item, as well as the potential future revenue from reselling it. Additionally, you’ll be hit with a chargeback fee to cover processing costs.”
This is in addition to other sources of loss and negative business consequences. To make matters worse, most chargebacks are cases of abuse. This can be unintentional, as the cardholder genuinely doesn’t know the difference between a return and a chargeback.
Jarrod also offers several tips to not only manage chargebacks and returns, but potentially to turn them into new opportunities. “You can’t prevent every return, but a return can be an opportunity if used effectively,” he says.
