Chargebacks911 COO® Offers Chargeback Insights for Merchant Fraud Journal
In her latest guest feature for Merchant Fraud Journal, Chargebacks911 exec Monica Eaton highlights the vital role that win rate and net response rate play in managing chargebacks.
Merchant Fraud Journal is an independent publication dedicated to empowering online sellers to greatly reduce the impact of eCommerce fraud on their businesses. Its core mission is to break the silos surrounding merchants’ internal fraud prevention processes by bringing together industry professionals to share their knowledge with one another.
Monica drives home the importance of chargeback representment. However, it's equally important to track your success in this area, too. "Your chargeback win rate, or the rate at which you successfully re-present transactions to the bank after a chargeback, is one of your most important key performance indicators (KPIs) from a risk management standpoint," she says. "It helps you determine whether you’re getting a good return on the time and money invested in chargeback representment. Tracking your win rate can also help you pinpoint opportunities to optimize processes."
She also highlights an important distinction between win rate and net recovery rate. By looking at the former without the context of the latter, merchants may end up leaving a large share of their revenue on the table and wasting resources on ineffective chargeback management strategies.
"Merchants tend to look at their win rate in isolation to gauge their effectiveness at fighting friendly fraud. You have to look at your win rate in the context of your net recovery rate, though. Otherwise, you’re not getting an honest impression of your performance when it comes to fighting chargebacks."