How Chargeback Reports Help Reduce Risk and Retain Revenue
Chargeback management often seems like more of an art than a science. There are so many variables that are subjective and open to interpretation.
However, if merchants use the right tools, chargeback management can be a science. A thorough chargeback report is one of those tools. It transforms the financial burden from a bunch of random, abstract figures into concrete, easy-to-understand data.
What Information Does a Chargeback Report Share?
If merchants create their own chargeback report, the information it contains will depend upon the effort the merchant puts into data collection.
If merchants work with a professional chargeback manager, the reporting process will be quite extensive. When done properly, merchants are able to analyze the data contained in the chargeback report to detect patterns and evaluate risk. To compile useful chargeback reports, accurate records of the business’s credit card transactions, chargebacks, representments, and pre-arbitration chargebacks should be tracked.
The data contained in traditional chargeback reports allows merchants to:
- Monitor alerts
- Measure key performance indicators (KPIs)
- View month-to-date chargeback rates
- Review representment win-back rates
- Identify merchant errors
- Monitor affiliate fraud
- Review geographical and demographical areas that are most profitable
How Can Merchants Use This Information?
Analyzing data is probably the least favorite task of most business owners. However, data review is essential when it comes to chargebacks. Compiling and analyzing chargeback reports is usually the only way to keep risk under control.
Merchants can better understand how their business practices factor into the consumer’s actions since customer satisfaction is a key component of successful chargeback management. A chargeback report will help merchants identify problems in this area, enhance sale conversions, and increase revenue.
A chargeback report is a reliable tool that helps merchants quickly assess and evaluate risk, liabilities, strengths, and weaknesses. Merchants can easily turn that information into actionable tasks. Reports of this type can often point out flaws and issues a business owner wouldn’t have otherwise noticed.
In general, an effective reporting system will help merchants:
- Create a more effective chargeback prevention strategy
- Successfully dispute chargebacks and recover more revenue
- Improve the merchant’s reputation at the issuer level
- Predict changes and trends
- Decrease fraud
- And much more!
Chargeback Timelines and the Need For Real-Time Reporting
The timeline for filing a chargeback dispute is very short; merchants usually need to respond within 5-7 days. That doesn’t leave much time to carefully analyze the situation.
Chargeback ratios are calculated each month. If merchants aren’t aware of their current chargeback rates, they could suffer severe consequences if things are worse than they suspected.
It is absolutely essential for merchants to routinely review their chargeback reports and be aware of threats as they arise.
That’s why Chargebacks911® provides daily, monthly, bi-monthly, and quarterly reports to help merchants review essential data. Perhaps the most useful analysis is the month-to-date report that lets merchants monitor their chargeback ratio in real time.
A Chargeback Report Example
Chargebacks911 specializes in providing in-depth analytics and diagnostics; we’ve become the industry’s gold-standard for reporting. Take a look at a chargeback report example:
We believe chargeback management demands a dynamic approach. Tactics of the past, no matter how successful they were, are not capable of handling today’s threats. The only way to adequately address a merchant’s needs is to understand every minute detail of the business’s chargeback activity.
As the first chargeback management firm on the market, we’ve understood one very important factor right from the beginning: merchants can’t adequately manage chargebacks if they don’t know what is causing the transaction disputes. And they won’t know what causes the transaction disputes if there isn’t sufficient data available to explain the situation.
Not only do we understand why chargebacks happen, but our detailed analysis of chargeback data helps us predict issues and resolve the problems before they become liabilities.
What You Don’t Know Will Hurt You
Trying to manage chargebacks without sufficient data will be a fruitless endeavor. Even worse, isolating the wrong problem based on insufficient or confusing data could increase risks and costs.
The Chargebacks911 reporting system uses a customizable interface that allows merchants to access the information they really need. We take the guesswork out of analyzing chargeback reports. We streamline the information, making it easy to sort, interpret, and put into practice.
We also make sure you aren’t overwhelmed by information you don’t need. Merchants shouldn’t waste their time sorting through data that is repetitive or totally lacking in substance.
If you’d like to learn more about our chargeback reporting system, let us know.