Chargeback Management Software Best PracticesSoftware Alone Won't Solve Your Chargeback Woes. So What Can?
Chargeback Management Software is Not Enough. Here’s What Else You Need.
It’s tempting to think of chargeback management software as a silver bullet that will slay your dispute demons while you focus on running your business. But, let’s be honest: that just isn’t reality.
When deployed and used correctly, chargeback management software is a key tool in your defense arsenal. It can let you automate key functions during transaction representment. It can help you refund customers before a chargeback happens, flag suspicious transactions, and identify patterns in dispute data to pinpoint chargeback triggers.
Software can’t fix a confusing eCommerce return policy, though. It can’t optimize your billing descriptor or remedy poor customer service.
That’s why you need more than just software if you want to solve your chargeback woes. A holistic strategy that combines technology with smarter business practices is a much better bet than relying entirely on software to solve your problems. For this reason, you’ll want to pair your dispute management software with assets and best practices like those I’ve outlined below.
Chargeback Management Software
In this guide, we take a look at what chargeback management software does and what types of solutions exist in the market. We’ll also talk about how to choose the right solution, what to expect during implementation, and whether a software-based approach is enough.
Complementary Fraud Detection Tools
Although scammers often target the checkout and payment stages of the buyer journey, sometimes fraud begins much earlier — well before it can be detected by a transaction monitoring tool.
For example, bad actors can use synthetic identities to create fake accounts, or use generative AI tools to craft believable phishing emails or smishing texts. To combat these kinds of fraud, you’ll need other tools, like liveness checks at signup and device fingerprinting tools that can help identify compromised devices.
Learn more about fraud detection toolsBest-in-Class Customer Service
No tool can fix chargebacks if they stem from unaddressed customer grievances.
Remember: chargebacks are so easy for cardholders to file. If you’re difficult to get in touch with or unhelpful when contacted, you won’t get a chance to make things right. Instead, the first time you’ll know something is wrong is when you receive a chargeback notification.
Obviously, you don’t want that to happen, so your business will need to develop a reputation for being helpful and friendly towards customers. Buyers who feel heard and understood are less likely to file chargebacks out of frustration or spite. The best approach here is to be easy to reach and accommodating when contacted.
Learn how to optimize your customer serviceClear Return Policies
Chargebacks can happen for invalid reasons like buyer’s remorse or family fraud. In both cases, cardholders have paid for items that they don’t want. The buyer might’ve tried to initiate a return, but found that the process is too difficult or restrictive. So, they filed a dispute instead.
It’s for this reason that a generous, buyer-friendly return policy is often the best approach.
I know you don’t want to incentivize returns, per se. But, it’s better to accept the return than to risk a chargeback. You’ll lose out on sales revenue, but you’ll get your merchandise back, and you’ll avoid a chargeback fee.
Learn more about optimizing your return policyUnambiguous Billing Descriptors
Not all chargebacks are malicious. For example, buyers will occasionally forget that they purchased something and, seeing an unfamiliar charge on their statement, assume it’s fraud and call the bank.
If your billing descriptor is confusing or inaccurate, buyers could misidentify legitimate purchases as fraudulent ones. Luckily, this problem is almost entirely preventable.
Reconfigure your billing descriptor to display your trade name or doing-business-as (“DBA”) name, rather than your legal name. This will make things more clear. Including a customer service number at the end of your billing descriptor, or investing in dynamic descriptors that display the items purchased, can reduce ambiguity even further.
Learn more about billing descriptorsAccurate Inventory & Order Management
Buyers can file chargebacks for legitimate reasons, like fulfillment or delivery errors that lead to damaged, missing, or incorrect goods.
To prevent these self-inflicted chargebacks, you’ll want to keep detailed tabs on your inventory levels and include quality checks as part of your fulfillment process to ensure that you don’t run into stockouts, erroneous substitutions, or product mix-ups.
You’ll also want to regularly grade your logistics providers on metrics like on-time rates, accuracy rates, and more to ensure that problems don’t arise while your goods are in transit.
Learn more about merchant error
Chargeback Management Software: One Part of a Multilayered Strategy
Using Software to Create a Custom Solution
Even the most advanced chargeback management software is just that: software.
It can be a powerful tool to streamline processes and increase your return on investment. But, like most tools, it works better in the hands of an expert.
At Chargebacks911®, we take our own approach to chargeback management software. We offer end-to-end coverage with a system- and hardware-agnostic technology platform that works to both prevent chargebacks and optimize revenue recovery.
Plus, our multi-tiered strategy features a comprehensive suite of tools integrated into a single user-friendly dashboard. This includes Intelligent Source Detection®, a proprietary tool that combines machine learning and human expertise to reveal chargeback sources. So, whether you’re looking to implement a fully-managed, self-managed, or hybrid approach, we have the right solutions to fit your needs.
Want to learn what this could mean to your business? Contact us today for a free demo, and see what award-winning chargeback management s
