How am I causing my own chargebacks?

No one wants to believe theyâre the cause of their own problem. However, between 20-40% of all chargebacks are the result of merchant error. There are over 100 different missteps that can lead to chargebacks. Itâs hard for merchants to find these mistakes on their own, though, because theyâre too close to the situation. An independent review and analysis is often the best solution.

Can all chargebacks be avoided?

Unfortunately, some chargebacks, such as those caused by merchant error, can be prevented by adhering to best practices. Friendly fraud chargebacks, however, are post-transactional, meaning thereâs no way to anticipate them beforehand. That makes it critical for merchants to combat charges from both sides, preventing as many as possible while actively representing any that are filed.

Will providing better customer service help with chargebacks?

It will help, and itâs certainly a good place to start. However, while customers are required to contact the merchant before taking action with the bank, research shows that only 14% of cardholders actually do. Even the best customer service canât help if youâre not even aware of the problem until after the chargeback is filed. Again, a two-pronged approach is the most effective strategy.

Do I need to tighten my fraud filters?

It probably wonât help as much as you think. Itâs easy to assume criminal fraud is the greatest risk, but overly-stringent fraud filter rules will dramatically increase the number of false positives. The value of these missed sales can be twice as great as the value of actual criminal fraud.

Types of Chargebacks Archives

Types of Chargebacks

Merchant Error Chargebacks

Is your business struggling with a high number of chargebacks every month? Well, you’re not alone. Here is everything you need to know about merchant error chargebacks, including the top 20 triggers you need to watch out for.

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