Best Chargeback Help for Card-Not-Present Merchants
Many merchants assume chargebacks are just part of business. While transaction disputes are quite common, there is chargeback help available. More importantly, when executed properly, chargeback assistance actually works. Merchants who take a proactive approach to chargeback prevention and representment can greatly improve their business' profitability and reputation.
Do You Need Chargeback Help?
First, let’s address the most obvious question: do merchants need chargeback help?
Yes, you do need help! It’s been reported the average merchant suffers 133 fraudulent transactions per month, averaging $114 each. It does not matter what industry you are in, that is a lot of revenue lost!
Merchants who take a proactive approach to fraud detection and prevention have a significant edge over the competition in their industry. Studies show that dedication to fraud detection pays off: for each successfully completed fraud transaction that slips through the cracks, ten fraudulent transactions have been prevented.
You do need chargeback help.
What Management Strategies are Available?
When it comes to chargeback management, merchants basically have three options:
- DIY: Merchants always have the option of managing chargebacks in-house. Some hire a chargeback analyst to focus solely on chargebacks.
- Outsource: Merchants rely on the professional assistance of chargeback experts. For example, Chargebacks911® offers a turnkey solution that can handle the entire task of chargeback management.
- Combination: A merchant might choose to do the bulk of their chargeback management in-house, but outsource certain tasks to third parties; similar to a gateway service provider or customer relationship company.
The type of chargeback help you seek will depend on your management style.
Two Types of Chargeback Help
There are two main components to the chargeback process. Therefore, there are two areas where merchants need help: prevention and representment.
First, you must prevent as many chargebacks as possible. Despite your best efforts, some chargebacks will still occur. When they do, you need to be prepared to defend your position. Merchants also need help with representment.
Let’s take a look at the chargeback help available for these two tasks.
Help with Prevention
Here are four things that will help merchants prevent chargebacks:
Before you can begin preventing chargebacks, you must first understand what they are. That may sound silly; of course you know what chargebacks are! But how detailed is your understanding of these transaction disputes? There is probably a lot you do not know.
First, download The Geek’s Guide to Chargebacks. Think of this eBook as the introductory course to your chargeback education.
The State of Chargebacks 2018
Launched as a way of collecting and analyzing industry findings, the State of Chargebacks survey reflects the experiences of more than one thousand respondents in the card-not-present space. Download to learn the latest insights on fraud and chargeback management.Free Download
Preventing chargebacks is a whole lot easier if you know what you should be preventing. Analytic reports help merchants evaluate their current management efforts, identify areas of weakness, and devise a workable approach to preventing future chargebacks.
3. Evaluation of Policies and Practices
Unfortunately, chargebacks are occasionally caused by merchant error. There could be seemingly insignificant details of your policies or business practices that are causing major chargeback issues.
- Substandard marketing of products and services
- Inadequate customer service
- Confusing or restrictive policies
- Poor accounting or transaction processing practices
Identifying these oversights and devising strategies to correct them could greatly reduce the number of chargebacks a business experiences.
4. Fraud Detection
When it comes to fraud detection, chargeback help comes from a variety of sources. There are various tools, programs, and automated features that help detect and prevent fraudulent activity. Some examples include:
- Address Verification Service
- Card security codes
- 3D Secure
- Fraud alerts (proprietary technology provided by Chargebacks911)
- Affiliate fraud detection (proprietary technology provided by Chargebacks911)
There is additional chargeback help available to those who implement it themselves:
- We have a detailed blog article that helps merchants identify potential credit card fraud.
- Knowing how to interpret the authorization code and what action to take can deter fraud.
- Merchants can use an authorization hold to reserve funds needed to complete the transaction while validating the cardholder’s information.
Help with Representment
When compared to representment, chargeback prevention seems simple. Tweaking your business practices and scrutinizing transaction information is easier than confronting the biggest brands in the banking industry.
Chargeback help for representment could be much more valuable.
Here are four things that will help merchants succeed during the representment process:
1. ROI Analysis
Merchants have the right to dispute chargebacks, but exercising that right isn’t always the best idea.
Chargeback representment demands valuable resources, mainly time. While it is important to fight as many chargebacks as possible, it doesn’t make sense to dispute chargebacks if the cost outweighs the profit.
In these situations, chargeback help comes in the form of an ROI analysis. Merchants need to know which cases have the highest probability of success and which should be abandoned.
2. Dispute Acknowledgement
Each chargeback comes with a reason code. This reason code helps the merchant understand why the consumer is disputing the charge.
Often times, merchants need help understanding the chargeback reason code and determining the best strategy for disputing the cardholder’s claim. If the right approach isn’t used, the representment won’t be successful. Even worse, faulty representment efforts could make the situation worse, alienating payment industry members and increasing costs.
3. Evidence Preparation
Understanding the reason code is only half the battle. Once you’ve determined which charges are being brought against you, you can prepare your defense.
Compiling the necessary compelling evidence will take time and a comprehensive management system. Merchants will benefit from help when it comes time to crafting their representment case.
4. Submission and Follow-up
Sometimes, the difference between a successful and futile representment case is simply due to follow-up. Ensuring the representment submission was received within the given time frame and contained the necessary documentation will greatly increase the odds of recovering lost profits.
Getting the Chargeback Help You Need
As previously mentioned, there are three ways to handle chargebacks: managing in-house, outsourcing to a professional, or combining the two options.
If you try to manage chargebacks on your own (or moderate assistance from elsewhere), the responsibility falls on your shoulders. Other than reading available resources and making the changes yourself, there isn’t much chargeback help you can utilize.
The best chargeback help comes from a professional. In fact, Chargebacks911 can customize a solution that meets all of your needs.
If you need help preventing or disputing chargebacks, let us know. Whether you are burdened by the occasional chargeback or receive hundreds each month, we have a customized solution to fit your needs.