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HOW TO WIN BY FIGHTING CHARGEBACKS
Often the chargebacks are considered to be “the cost of doing business. With the right tools for prevention and management, this is necessarily not the case. For online businesses, the chargeback fraud is increasingly becoming a problem.
There are mainly two types of these frauds, criminal and friendly.
- Criminal Fraud: These mainly happen when the cardholder refutes the payment. This can happen if the card gets lost or misplaced and some fraudulent transactions are made from it. Such transactions can also be made by hacking the card information. When the genuine cardholder sees the payments, he/she refuses it thus leading to criminal activities.
- Friendly Fraud: These frauds are of two types, intentional and accidental. For accidental, a family member may borrow the card and purchase without the knowledge of the cardholder who subsequently refuses the payment on viewing the bill. In case of intentional, after making a purchase, if dissatisfied, the cardholder contacts the issuing bank directly for filing a chargeback. He/she should first contact the merchant instead of the bank. The merchant, in this case, gets chargeback unknowingly.
There are ways to fight the chargeback.
- Taking help of customer service for resolving feedbacks and issues: The customers must be able to resolve their complaints through proper channels so that they do not file a chargeback. The customer or technical support contact numbers can be displayed clearly on the website as well as the invoices. The refund along with the return policies should also be made clear to the customer over the website. There is typically a timeline between which the merchants can reach out to the customer and get the chargeback disputed.
- Meeting the evidence burden: The merchants can always argue against a chargeback filed by the customer. For this, they need to collect evidence like slips of delivery confirmation, transcripts of customer service for purchase, signed receipts, customer address verification for the delivery of goods, etc.
- Respond timely: As different cards have different deadlines, the merchant must respond urgently with full accuracy and must submit correct information.
- Proper tracking to be implemented to prevent a chargeback: The merchant processing must try to prevent the avoidable chargebacks by implementing the correct tools which help in preventing the same refusals happening repeatedly. The notification services may also help the merchants to avoid late fees, penalties, and fines from the network of cards and banks.