Chargeback Management Software ROILook Beyond the Sticker Price. Consider Your Potential Return on Investment Instead.
Chargeback Management Software ROI: Is it Worth the Investment?
Let’s just state the obvious right up front: chargeback management software isn’t free.
Every new expense you take on needs to justify its existence by producing a return on investment (ROI), and doing it fast. But, viewing this software as just another line item on your expense report is the wrong way to think about it.
Instead, you need to compare chargeback management software costs with the cost of doing nothing. After all, between lost revenue, chargeback fees, and the time and hassle incurred in fighting disputes, the hidden costs of unmanaged chargebacks can be significant.
In this chapter, I’ll give you a closer look at the true ROI of investing in a chargeback management solution.
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.
Is Chargeback Management Software Worth It?
From a qualitative perspective, the answer is “yes.” Assuming the software is implemented correctly, of course.
Any chargeback management software solution, even in isolation, should move the needle in your favor in regards to dispute detection, prevention, or representment. The best software platforms, though, are end-to-end solutions: they should address all three of these challenges in a way that leaves no opportunities for fraudsters to exploit.
Merchants often deploy an array of complementary tools to deter fraud, ranging from transaction monitoring software and fraud detection machine learning algorithms to automation tools and more. When properly aligned, these tools can produce:
How to Calculate Your Chargeback Management Software ROI
A more difficult question to answer is whether chargeback management software is worth it from a quantitative perspective.
Let’s face it: fraud-fighting tools aren’t free. Out-of-the-box software-as-a-service (SaaS) platforms can run you a few dozen dollars a month. But, enterprise-level, built-to-suit solutions can cost tens — or even hundreds — of thousands of dollars to build, configure, and implement.
At the end of the day, though, the calculus remains the same. Whether a solution makes financial sense will always depend on whether it can demonstrate a positive return on investment.
Would chargeback management software save you more money than it costs? And by how much? First, let’s calculate your exposure:
What are Chargebacks REALLY Costing You?
Annual Revenue Lost:
+ Chargeback Fees:
+ Admin Fees:
+ Cost of Goods & Shipping:
Total Annual Chargeback Cost:
Keep this number at top of mind when considering chargeback management software pricing. If a solution can deliver a return on your investment, without causing additional headaches during setup and day-to-day operation, then that provider should make your shortlist of candidates.
Of course, optimization matters, too. You want to find the solution that yields the highest ROI, not just a positive one.
All else being equal, the cheapest vendor or the solution that can deter the most number of chargebacks usually wins out, though you’ll also want to pair your ROI calculations with qualitative considerations. This means that a more expensive vendor with buyer-friendly contract terms and a reputation for excellent customer service may be worth considering over a provider whose only selling point is their price.
Chargebacks911® offers the industry’s only 100% ROI guarantee. If you don’t see a return on your investment... you don’t pay. Simple as that.
Maximize Your ROI
Chargebacks911 were the world’s first firm dedicated to end-to-end chargeback management. And, we’re stilll the market leaders. Find out how much you could save today.
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