To improve your bottom-line results you need to implement a holistic chargeback management solution to fight chargebacks, and also actively reclaim dollars lost to fraudulent chargebacks.
Verifi, a leader in chargeback prevention and recovery since 2005, recommends 6 best practices for fighting chargebacks and improving the chargeback dispute process
1. Improve Internal Chargeback Processes
To fight chargebacks, you should optimize several internal processes to minimize chargebacks. For example:
- Gather information you need to build your case when representing chargebacks.
- Improve customer service by making it easier for customers to contact your company. You can consider extending hours of operation and make it easier to reach a live person by reducing hold times and automated menu options. You don’t want customers to get frustrated, hang up and choose to call their issuing bank instead.
- Institute internal fraud monitoring that includes monitoring IP addresses or high-value transactions to prevent fraudulent chargebacks before they occur.
- Use chargeback notifications to learn quickly when a customer is disputing a charge. Notifications enable you to address chargebacks proactively without tightening up fraud control so much that you turn away good customers.
2. Prioritize Which Chargebacks to Fight and Represent
Whatever you do to prevent chargebacks, they will still happen, so you need to identify those that are most worthy of being fought and represented based on the expected ROI. Each dispute takes time and carries a fee from your acquirer. Consider the return on time and money spent and pick your battles carefully.
3. Gather and Analyze Chargeback Data
Monitor your chargebacks and determine where you should take preventive measures. Make sure you separate your initial chargebacks from those that remain after you represent them. You need to understand the “why” behind each chargeback. Why are they occurring? Why aren’t you winning them when you represent them? Insights gained help you minimize chargebacks and maximize representment win-rates.
4. Make Billing Clear
Some chargebacks occur because customers don’t recognize charges they receive. So be as clear as possible and make it easy for the consumer to contact you and jog their memory about a purchase. Include the URL or customer service number in the descriptor field on bills.
5. Fix Problems in Operations
Your chargeback data can be a treasure trove of information about problems in operations. Analyze the chargeback codes you see most frequently and what might cause the problem. For example, perhaps you have a high percentage of chargebacks due to “merchandise not as described.” If so, it may indicate your website’s product descriptions and images are not descriptive enough. Or, maybe your product quality is not up to consumer expectations.
6. Outsource to the Experts
If you choose to fight chargebacks, know that is is time consuming and can divert resources from your core business. To be effective, it takes deep expertise and requires you to keep up on all the latest rules for chargebacks. Many merchants find the best solution is to outsource the task to a third party that’s 100% focused on chargeback prevention and management. This solution often achieves the highest return on investment, enabling you to reduce risk, be more efficient, and improve your bottom line without the chargeback management headaches.
You don’t have to accept shrinking profits. Let Verifi help you fight chargebacks. We do all the work!
Verifi’s Premier Chargeback Revenue Recovery Service can help you fight chargebacks, increase your chargeback win rate, save you time and recover lost profits that are rightfully yours… without tying up scarce IT resources.
The benefits are clear:
- Immediate ROI – Pay Only For Success.
- Guaranteed ROI – Pay-for-performance pricing model means you only pay a nominal percentage when we’re successful (fixed rate fee option also available). Verifi has a win rate nearly 2X the industry average – reclaim more than 50%* of disputes.
- Streamline Your Process -In-depth analytics and reporting features can help identify problems in the operation and improve fraud and chargeback prevention measures. Lower costs and free up your time from hiring, training and maintaining staff.
- Comprehensive Omni-Channel Coverage – Support for all media enables you to recover chargebacks for BOTH card-present and card-not-present channels. Covers all card brands and major payment methods (Visa, MasterCard, American Express, Discover)…and even PayPal.
- Expertise to Lower Your Costs and Focus on Your Business – Trusted leader in the payments space processing hundreds of thousands chargebacks EVERY month. Our Chargeback Recovery Specialists handle all aspects of the dispute process: research, case positioning and and all the issuer communications through resolution. Long term relationships with top issuing banks and processors give us insight into all the complex details of improving chargeback process.