Analysts & Managers: A Successful Chargeback Management Team Needs Both
Managing chargebacks falls under the scope of two key roles: the chargeback analyst, and the chargeback manager.
One is primarily focused on analyzing and curating data to catch disputes before they become chargebacks. The other is empowered to respond to and manage chargebacks in progress. However, an effective chargeback management team really requires both specialists to work in close collaboration.
In this article, we’ll dig into both sides of the chargeback management structure. We’ll see why managing your chargeback team as one cohesive unit can pay dividends, and how best to incorporate this structure into your business.
Chargeback Analysts & Chargeback Managers: Explained
As outlined above, a chargeback analyst is a payments industry professional who deals with banks, processors, consumers, merchants, and card networks. Their primary job is to review, analyze, and resolve customer disputes.
Conversely, a chargeback manager works to implement policies and procedures to prevent chargebacks wherever possible. They develop strategies to keep your chargeback ratio within an acceptable range.
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The differences seem slight, but they are actually quite significant. Each role has a crucial part to play in a successful chargeback management strategy.
It’s the chargeback analyst’s job to oversee how dispute cases are investigated in order to determine if the claims are legitimate. An analyst relies on software to compile and tabulate metrics and analytics to aid in prevention and response efforts. The manager, in contrast, would take the data from the analysts to identify trends and implement a chargeback management strategy.
Much of a chargeback analyst’s job involves investigating dispute cases to determine if the claims are legitimate. This means researching the transaction in search of evidence to support—or oppose—the customer’s claim.
Essentially, the chargeback analyst collates and reviews information from each case to identify patterns or trends. Any problems that arise on a consistent basis need to be communicated to the relevant party. The analyst may also make recommendations for policies and procedures, helping to prevent recurring problems.Roles & Responsibilities of a Chargeback Analyst
A chargeback manager must have specialized insight and understanding of fraud data, model schematics, and tools. This is because a large part of the job involves expert analysis of transactional records and databases. This enables the chargeback manager to identify trends in dispute filings, and to assist in developing a broader risk mitigation strategy.
This individual is also responsible for keeping all relevant parties up on the timeline and status of every claim, compiling analytical data, and implementing data-driven best practices. The chargeback analyst would essentially defer to the chargeback manager, whose job it is to manage your business’s risk profile.Roles & Responsibilities of a Chargeback Manager
Do You Need a Chargeback Management Team?
We won’t mince words here: you need help fighting chargebacks.
Your needs will depend on the amount of chargebacks you receive each month. However, both roles are full-time positions. In fact, you may even require multiple analysts, depending on your business’s size, product vertical, or sales model. These operations can become serious drains on your time and resources if handled inefficiently.
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Chargebacks already cost merchants billions of dollars every year. That trend does not appear to be slowing at all. We can’t stress how important it is to get a handle on chargebacks, but suffice to say that your business’s survival depends on it.
So, if step one is acknowledging that you need help, then step two is to decide how you would like to handle these roles. Do you want to build an in-house chargeback management team, or outsource to a third-party expert?
There are very real pros and cons associated with both options. We’ll get into those concerns further down, though. For now, let’s discuss what you should look for in a chargeback management team.
Requirements for Chargeback Analysts & Managers
Again, these roles are similar…but they are not quite the same thing.
If you hire just a chargeback manager, keep in mind that analysis-related work will then swallow a lot of the manager’s time. This might work if your business generally has a low chargeback ratio. But, if you receive more than a few chargebacks per month, you really need a full chargeback team to handle it.
There are no iron-clad rules for professionals in these positions. That said, here’s a rough overview of what to look for:
The chargeback analyst should have extensive knowledge of the chargeback process. However, their real area of expertise should be data analysis. They need well-developed communication, organizational, problem solving, and analytical skills.Roles & Responsibilities of a Chargeback Analyst
Typically, a chargeback manager is regarded as a payments or chargeback specialist. An advanced degree can help, but it is more important to have hands-on experience. In addition, a chargeback analyst should be a great communicator and an effective leader who can make key decisions that impact the business’s strategy.Roles & Responsibilities of a Chargeback Manager
This leads us to the next question: should you appoint an in-house chargeback management team, or would it be better to outsource the job?
Well, let’s take a look at the expectations you may have for in-house staff, and some of the realities associated with them.
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The Realities of In-House Chargeback Management
Hiring third-party experts can be a daunting prospect if your business is already cash-strapped from repetitive chargebacks and their mounting fees. So, appointing someone to manage these challenges in-house seems like a logical idea, right? After all, why spend more to address a problem that’s already sapping your revenue?
Well, it’s not quite that simple. The realities of chargeback analysis and management are probably a lot different from what you expect.
“Chargebacks aren’t a full-time position.”
"You need whatever is necessary to keep your business thriving."
So, if you are in need of chargeback management, then it is a full-time job. From initial dispute through post-representment, a single chargeback can take months to resolve. It’s never wise to underestimate the gravity of mounting chargeback woes.
“An insider will understand our company and products best.”
"Insiders can be biased, or working from incomplete data."
It’s good for your chargeback management team to be immersed in your company culture. However, this is ultimately the least important part of your strategy. Your chargeback team is there to root out problems and help guide your business through the hassles of representment.
“We can handle a learning curve.”
"Nothing compares to expertise."
The point of hiring someone to help handle the chargeback process is to gain expertise and guidance. Appointing someone in-house who may lack the necessary experience and accreditation can end up costing you more money in the long term. Additionally, hiring a newcomer to fill both roles might also cause the same problem, as these roles are not the same.
“We can be fully involved in the process.”
"The process requires a multifaceted approach."
Frankly, there is a limit to this concept. We project that 20-40% of the average merchant’s chargebacks result from internal errors. It requires an impartial, expert eye to sort these threats out.
Whatever route you decide to take, remember: the road ahead is only as smooth as the vehicle you choose to navigate with. Choose wisely, and save yourself additional losses.
Find a Chargeback Management Team That Does it All
When choosing a service provider, you want a strategy that offers the greatest possible return on investment. A third-party agency becomes a more rational choice when that company handles both chargeback analysis and management, and also guarantees their services.
That’s why Chargebacks911® may be your best option.
Our team works alongside your internal risk remediation staff to deliver maximum revenue retention, leading to more efficient staff allocation. Our efforts are backed by the industry’s only performance-based ROI guarantee: if you don’t save, you don’t pay.
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