There are those times when you’re running your business and you simply don’t know what to do. Maybe you must make a tough decision about an employee, or you have to decide whether to take on a risk, or maybe there is an opportunity that sounds too good to pass up but also too good to be true. The one time you want to make sure there are no questions about what to do is when it comes to knowing if you should represent a bank chargeback.
We can help you take the questions and uncertainty on representment out of the equation, allowing you to focus on some of the more challenging decisions you face day-to-day.
There’s one key to the representment process that’s important for you to remember: it is your right as a merchant to represent a bank chargeback. You do not have to sit back and accept a chargeback. It’s your business and the livelihood of not only yourself but your employees at stake. It is imperative that your customers don’t get the perception that it’s okay to commit friendly fraud (theft) and get away with it. We know representment seems like an onerous process, but with our advice and help we can take this uncertainty out of the process.
The Challenges of Representment
You’re not alone in facing questions on representment and knowing if you should proceed or not. As you know, that the chargeback process can be timely, inefficient, a drain on your resources, and downright frustrating. So, why proceed? If you don’t proceed and at least research your representment opportunities, you’re letting customers who commit friendly fraud win. Not to mention that as your chargeback numbers increase, your chargeback ratio is impacted, making it a challenge for you to work with major credit cards and financial partners.
Working with a representment partner can take away the inefficiencies, frustration, costs, and questions over bank chargebacks. Verifi is solely dedicated to forming such partnerships.
Don’t let these chargeback representment challenges hold you back:
- Trying to represent in-house. Representing a chargeback in-house can be a time-consuming and inefficient process. This typically results in mistakes and a drain on your internal resources––taking your team away from doing what they do best and ultimately costing you more money and time. Not to mention the lingering loss of revenue from the initial bank chargeback.
- Accepting that chargebacks are part of business. Forget the old school belief that chargebacks are simply part of doing business. If your policy is to reduce or refuse non-essential costs in your business, why would you accept chargebacks? When thinking about representing a chargeback, keep in mind how the associated cost increase due to excessive refunding and unreturned merchandise is cutting into your botton line.
- Not knowing what to do. Not every merchant knows how to or wants to know how to fight a chargeback, but this lack of knowledge shouldn’t stop you from representing. Working with a representment partner and having the solutions in place to limit chargebacks can take away the distractions from your important decision-making.
The challenges that come with responding to a bank chargeback are not insurmountable. With the correct knowledge, a well-defined action plan, and the right partners, you can turn these challenges into stepping stones to your success.
Remember These Representment Tips
While we want you to be proactive when faced with a bank chargeback, we don’t want you to rush in without having reviewed the pros and cons of fighting a chargeback dispute. It’s important to remember that some chargeback disputes can end up costing you more than you anticipate.
When deciding whether you should represent or not, keep in mind these tips:
- Speed matters. How quickly can you respond with a solid case against the chargeback? How long will it take for you to recover these lost funds and put them back into your business? Depending on the potential size of the loss, the time and effort required may outweigh the loss.
- Always be involved. Don’t wait until you have a bank chargeback to get involved in reviewing your sales numbers, payment solution, and issuer charges. When you know how many returns you’re seeing or calls to customer service or the reasons for increased issuer fees, you can better understand the total cost of a bank chargeback.
- Look at your internal processes. Are you doing all you can to prevent chargebacks from happening? Being proactive in the face of chargebacks makes it easier to separate the valid chargebacks from the invalid. Make sure you are: keeping and collecting all records of customer communication, confirming the billing and shipping information matches the AVS check, streamlining the workflow to limit human error, and that you’re automating your chargeback process to simplify the dispute process.
- Compare initial chargebacks to those that stand after representment. When you look at the ratio of unresolved chargebacks after representment, you can assess the effectiveness of your representment process. Understanding this data can help you locate the gaps in your bank chargeback representment process and see where you can improve.
- Prepare compelling evidence. Stop and think before you decide to represent a chargeback if you don’t have the requisite evidence to back up your claim. The starting place is with the chargeback reason code, which determines the information you need to provide.
The chargeback representment process is not simple, and we don’t want you to feel overwhelmed and defeated before you start. Know that with the right information, the correct solutions, and expert advice, successfully representing a chargeback is possible—and your right.
When to represent and when not to represent should not be a question you struggle over. Learn more about representing bank chargebacks and the solutions you can use to your benefit.