WHAT EXACTLY IS A CHARGEBACK REP-RESENTMENT?
If you’re one such merchant, you should definitely get to know briefly about the chargeback representment, since it can have a huge impact on your overall sustainability and profitability of the business.
Many merchants usually get into a state of confusion on whether it’s a good thing to accept a chargeback or dispute it. Well, this decision must be taken on after considering the actual situation. If the chargeback is fraudulent, the merchant must and should dispute the chargeback in question. Chargeback representment is the process where the merchant disputes a customer’s chargeback. If the merchant decides not to dispute the chargeback, the profits will be lost. Furthermore, if a merchant doesn’t go with the chargeback representment, the friendly fraud customers consider this behavior as okay and most probably will do it again in the near future. If a consumer loses a chargeback, they will definitely think twice prior to the next potential chargeback.
How Does the Chargeback Representment Work?
When a chargeback is initiated, it is usually either by the issuing bank or the cardholder. Usually, an issuing back files a chargeback when there’s an error in the transaction processing. In case of such chargeback being disputable, usually, the processor takes care of it without bothering the merchant. However, in case of a friendly fraud, which may involve an error from the merchant’s side or a dishonest fraud from the consumer, the merchant is responsible for taking the step of chargeback representment. Usually, the merchants get a very short period of time to take action. The merchant must submit appropriate evidence that claims there’s no issue on their side and the chargeback is an invalid one.