What Evidence Can Be Used to Challenge Chargebacks?
Each chargeback dispute requires compelling evidence to demonstrate that the chargeback is illegitimate and the original transaction is valid.
What is Compelling Evidence?
There are a myriad of different types of documentation that are considered ‘compelling evidence’. These documents help prove the legitimacy of the transaction and dispel inaccurate claims made by the cardholder.
Examples of compelling evidence include the following:
- Delivery confirmation receipt
- Signed order
- Sales receipt
The type of document isn’t as important as its function; payment processing members must be able to determine the validity of the transaction based on whatever document the merchant chooses to share as compelling evidence.
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Check the Reason Code
When a new chargeback is received, the first step for merchants should be to check the reason code.
Reason codes are meant to give a basic explanation as to why the cardholder or issuer filed the chargeback. Each card network (Visa, MasterCard, Discover, American Express, etc.) has its own reason code system, so it’s important to determine which card was used for the transaction and the reason for the dispute.
Merchants have to determine the reason code attached to each chargeback in order to effectively argue against it.
Find Which Evidence is Considered Compelling
Each network and each reason code has its own standards for what constitutes ‘compelling evidence.’
Merchants must consult the card networks’ official guides to determine appropriate documentation.
Consider the following examples:
Challenges of Creating Effective Chargeback Disputes
Because of the explosive growth of friendly fraud, there are plenty of opportunities for merchants to test their representment skills. Despite all this practice, it isn’t a guarantee that the merchant’s efforts will be successful.
Network regulations are updated regularly. It isn’t uncommon for card networks to make major changes to their regulations at least twice a year, with smaller updates made more frequently. It’s challenging to stay current. What constitutes compelling evidence may change overnight; what was acceptable one day may be ineffective the next.
The process is time consuming. Consulting network regulations and locating compelling evidence take significant amounts of time. Rather than devote these resources to solving problems of the past, merchants would do better to reallocate those efforts to revenue-generating departments that can help secure future growth.
There is always a risk of second chargebacks. Both networks allow issuers to challenge the merchant’s chargeback dispute (Visa calls this a pre-arbitration chargeback and MasterCard refers to the dispute as an arbitration chargeback). This means merchants could be forced to execute the representment process, in its entirety, a second time.
Making the Process More Efficient and Effective
Fortunately, there are various ways to make the process of assembling compliant cases and disputing chargebacks more effective. For example, Chargebacks911 assists merchants with three different service levels.
Chargebacks911™ offers access to our state-of-the-art, innovative suite of software. This option allows merchants to achieve professional results with DIY efforts through in-house disputes.
If you feel confident in your ability to stand-up against chargebacks and friendly fraud with only minimal assistance, this could be the option for you.
Whether it’s one chargeback or 100, merchants can request representment assistance for any number of cases with—literally—the push of a button. Our on-demand services provide assistance when you need it most.
We can help on a temporary basis—for example, after a rush of holiday sales or while you go on vacation. Or, we can simply step in to assist with difficult-to-win cases.
We’ll integrate directly with your customer management software so we can access necessary compelling evidence whenever you’d like us to handle a dispute case.
This service level comes with additional management perks like the ability to retrieve all your chargeback data in one place, increasing efficiency and enabling more effective, pertinent and accountable reporting.
If you’re interested in receiving the best results possible—the highest win rates, a reduction in second chargebacks, an improved reputation among industry members, and the best revenue recovery—our fully-managed service is the solution you need.
Chargebacks911™ offers a fully-outsourced solution for comprehensive chargeback management and end-to-end accountability. Simply entrust the process to Chargebacks911, and reallocate your valuable in-house resources to revenue-generating departments.
This service comes with additional benefits, including guaranteed win rates, extensive reporting, customized risk mitigation plans, and a full-time risk manager.
It’s Dangerous to Go Alone
It’s possible for merchants to identify and collect compelling evidence and dispute their own chargebacks. However, merchants will see much better results with Chargebacks911™.
The company’s 100% guaranteed ROI ensures satisfaction. Sign up now for a free analysis and see what Chargebacks911™ can do for your business.