Dealing with Chargeback is tough and looks frustrating task for most haunts for card payment due to complexities and consumer centric nature of the policies from the card issuance entities.
Just protective practices and few proactive efforts to deal with chargeback claims where it is fair or unfair. Just take a time to analyze chargeback request to collect supporting information or evident, documents to fright any unfair chargeback helping to save your revenue genuinely. So, collect and provide evidence to prove the sale was legitimate.
Common reasons for friendly chargeback request by consumers:
- Acknowledging as it unauthorized transaction.
- Stolen credit card information used to purchase
- Unrecognized transaction as most common for ticketing
- Merchandise wasn’t delivered when it was
- Merchandise was defective upon its arrival when it was fine.
- Disparaging the quality of the products or services.
- Ultimately an illegitimate or unwarranted chargeback is basically the equivalent of cyber-shoplifting.
Know Chargeback Hypothesis:
- 81% of recent survey participants admitted to filing an illegitimate chargeback because they “didn’t have time to contact the merchant.”
- Only 14% of consumers adhere to credit card regulations and contact the merchant for a refund before initiating a chargeback.
- A consumer who has filed a chargeback is nine times more likely to do it again.
- 40% of cardholders who successfully file an illegitimate chargeback will attempt another in the next 90 days.
- There are two faulty business practices that make it seem like the bank is the easiest, no-hassle solution for a refund.
- The merchant’s restrictive return policy & par customer service
- Haunts to improve customer service to address the return or refund policy.
Practices to avoid chargebacks:
- Cancellation and return policy must be stated on the website
- Refer local laws or advised from law expert for policies, terms, conditions to protect and fight back
- Use a clear payment descriptor – like Billing company name that reflects on payment statement.
- Contact to your payment processor to learn more about their chargeback policy.
- Identity confirmation through services like Verified by Visa or MasterCard Secure Code, which require customers who opt in to enter an extra password to authorize credit or debit card payments online.
- "chargeback protocol," that helps detect signs of fraud.
- Pay attention to alerts that inform if there are any suspicious details, such as if the credit card security code isn't correct or if the billing and shipping addresses don't match.
- Checking Address Variations
- Merchants will often come across orders where the “Bill To” address is different than the “Ship To” address.
- Dispute All Friendly Fraud
- Merchants must dispute all friendly fraud chargebacks to improve their reputation with issuing banks.
- Get chargeback protection coverage from respective payment processors or third party that help to defend chargeback and helping to save huge revenue loss.
1. Responding Quickly :
Once you receive notification that a chargeback has been initiated, Quickly and efficiently prepare a response. A chargeback dispute is a subject to scrutiny by multiple parties, so it is essential to present evidence clearly and with urgency.
2. Resolve Complaints through Customer Service :
One chargeback is initiated, you’ll typically have a small window of time (7-10 days) to dispute it via the channels required by Visa and MasterCard. In this period, it is also helpful to contact the customer directly to gauge the real reason for the chargeback.
Customers can undo chargebacks by contacting their card issuer, so reaching out to the dissatisfied party in a genuine and timely manner may persuade them to stop pursuing the claim.
If the customer’s complaint is valid, you should issue a refund as soon as possible rather than concede the chargeback.
Must evaluate the strength of your case before proceeding with a chargeback dispute. if you have solid documentation and the time and energy to contest the chargeback, you should submit a counter claim and try to recover your money.
3. Gather Transaction Records:
Collect best possible evidence to contest the customer’s chargeback claim. This evidence includes transaction detail, buyer’s ip address, location, confirmation emails, card holder’s information, delivery documentation, including (but by no means limited to):
- Request to get buyer’s IP address, date and time, verified location information from your payment processor
- Collect evidence to prove that card holder lives or works at the delivery address
- Gather information from the system about order, payment, buyer and attendee info, transaction details, email ID, Address.
- Verify these information with actual card holder’s information
- Analyze information flow from the system till the tickets are scanned and used by whom and what dates
- Collect venue visit CCTV Footage to identify who visited the attractions.
- Evidence that the customer has previously used the same transaction information to process undisputed purchases
- Evidence that someone related to the customer could have made the purchase with the customer’s card
- System capture and store information digitally keeping organized transaction records will help to ensure that you can assemble all the necessary evidence within the short time-frame allowed.
- So, collect and provide evidence to prove the sale was legitimate.
4. Chargeback Reason Codes:
Better understanding about chargeback reason codes is essential when preparing for an effective chargeback dispute case. Depend on reason code may follow the procedure to fight chargebacks.
5. Get Professional Help :
Chargeback disputes process is time taking and can be an expensive, but you can save yourself headaches (and money) by establishing a sensible, efficient chargeback dispute process.
Good to talk with professional chargeback specialist If chargeback value is too high and seems false claim to fight chargeback request.