Henry Ford specifically set out to revolutionize how automobiles were manufactured. Since then, his “assembly line” process has been widely adopted to build everything from computers to hamburgers. Even if your business may not depend on coding or provide Software as a Service (SaaS), there are eye-opening lessons in process, methodology, and team management to learn from a coding team in fintech.

Critical review at the right time

Verifi Software Engineer Taylor Caswell has a keen understanding of the importance of timely review when producing a complex software product. “Providing feedback early in the development process helps us avoid wasted work and wasted time,” Caswell says. Whether building a pizza or a video game, there are critical reviews to ensure you have the foundation to move forward and your build is on the right track. It’s not just getting the team together that matters, it’s the awareness of the individual mindset of each team member, their understanding of what their part is in product development, and the critical thinking they bring to the whole enterprise that determine successful process.
“Every developer has their own strengths and weaknesses. If you are a domain expert, pay careful attention to the domain. If you have a knack for clean code practice, keep your eyes out for that in particular. We work in teams for a reason. Do what you do best,” Caswell suggests. That’s not to say a fix, workaround, or epiphany can’t come from someone with peripheral knowledge of a subject. In these situations the person with the idea or comment should table it as a suggestion and not an answer.

What if there are differences of opinion?

When you have a room full of people, you also have a room full of opinions. Mix this with individual accountability and pride of work, and there is every opportunity for the raising of hackles and the ruffling of feathers. Caswell speaks from experience when he says, “People (including myself) are more likely to be more comfortable having their initial code or proposal overruled if it comes from an inclusive team rather than a single opposing developer or manager.”
Differences of opinion are normal, healthy, and expected. Staying loose and open-minded is key according to Caswell. “As a team, we discuss the problem and weigh the solutions. Sometimes we’ll pick one of the two options in contention. Other times, we’ll come up with an entirely new solution that exceeds the initial disagreement entirely.”

How to foster a positive review culture

Extroverts and alpha personalities aside, it takes time and concentrated effort to build an atmosphere of trust. When it comes to individual work and pride of ownership, coupled with a complicated product and an approaching  go-to-market date, it can create a tense environment. Caswell has some suggestions to keep things productive while keeping the peace. “Avoid comments that feel like personal attacks with a simple trick: leave them in the form of inclusive questions. Instead of writing, ‘This method is too long,’ try, ‘Can we shorten this method?’ By changing the language to be inclusive, we show that we are on the same team,” he concluded.
Inevitably, either in meetings or instant messaging threads, situations can go sideways with the potential to blow up. In these instances, Caswell has a personal rule: “I take the conversation out of the code review and right to the developer’s desk.” Sometimes there’s no substitute for a one-on-one conversation.
Read the entire interview with Verifi Software Engineer, Taylor Caswell, here.
See why Verifi is a great place to work. Check out our profile on Built In LA here.
 
 

Using Your Customer Data to Manage Chargebacks
Chargebacks and disputes are a part of doing business, but they don’t have to be handled at the cost of doing business. Most merchants already have the tools to prevent disputes and recover losses from chargebacks, and all it takes is a little strategy and time to protect and recover revenue.
To win any case, whether in court or a payments dispute, you need facts. Merchants have access to an arsenal of transaction and customer facts in their CRM and receipt data. It’s just a matter of knowing what data are required to recover lost revenue and for what type of chargeback.
Understanding the Chargebacks Affecting Your Business
 The types of chargebacks you receive can be based on how you do business and/or what type of business you’re in. For instance, a subscription-based company will see a lot of Cancelled Recurring chargebacks because customers will file a chargeback with their card-issuing bank rather than just calling the merchant to cancel their subscription. An example of chargebacks based on how a merchant does business would be Credit Not Processed. This happens when a customer returns a purchase and does not receive a refund or response from the merchant. The main point being, don’t avoid chargebacks and let them pass their freshness date sitting on your desk, resulting in lost revenue. There’s a lot to be learned and money to be reclaimed if you address and fight chargebacks.
Addressing Chargebacks with Factual Data
Of course, both of the above chargeback examples can be won if the merchant can prove proper protocols were followed. The goal is not handing over great data volume, it’s assembling relevant data as compelling evidence in a concise, effective response.
Compelling evidence for Cancelled Recurring chargeback may include:

• Proof cancellation policy was understood, signed, and accepted by the customer
• Proof policy is clearly posted on the company website with cancellation instructions
• Justification of why the subscription was not cancelled
• Proof a renewal notice sent to the customer

Compelling evidence for a Credit Not Processed chargeback may include:

• Proof customer was refunded for their purchase
• Proof customer was not entitled to a refund
• Proof customer was shown refund policy prior to purchase
• Justification why the customer was not entitled to a refund.

Some Common Reasons for Chargebacks
Below are six common reasons for chargebacks, with reason codes:
Fraud – Card Not Present
10.4 (Visa), 4387 (MasterCard), F29 (AmEx), UA02 (Discover)
Transaction Not Recognized
4863 (MasterCard), R04 (AmEx), AA (Discover).
Goods or Services Not Provided
13.1 (Visa), 4855 (MasterCard), C08 (AmEx), RG (Discover)
Not as Described or Defective Merchandise
13.3 (Visa), 4853 (MasterCard), C31 (AmEx) and RM (Discover)
Cancelled Recurring
13.2 (Visa), 4841 (MasterCard), C28 (AmEx), AP (Discover)
Credit Not Processed
13.6 (Visa), 4860 (MasterCard), C02 (AmEx), RN2 (Discover)
Important Data for Chargeback Representment
Since submitting chargeback representments is a time-sensitive process, it is most beneficial to keep data organized and ready to be put to work. Below are some of the most common data used as compelling evidence for a broad range of representments.

• Transaction information
  • Receipts
• Proof of Delivery / Shipping Confirmation
• Packing Lists
• Customer Communications
  • Emails
  • Phone call log
• Copy of Return Policy / Terms and Conditions
• Rules for Cancelling Subscription Accounts
• Digital Download and Usage Information

Don’t forget to include a concise cover letter stating your case with every representment.
Address Chargebacks as a Part of Doing Business
Unless you address chargebacks, you’ll be victimized by them. So, take the necessary steps and prepare to win back lost revenue. Make sure you’re organized, know where your data is, and prepare to put it to work. Get familiar with the CRM software, payment gateway, customer service software, how and where your data is stored, and understand how to retrieve it.
If the issuer has a preference for how the evidence is to be presented, be sure to follow it. Also know the monetary tolerance where pursuing a chargeback representment may or may not be financially beneficial for your business.
For further information, get Verifi’s complete chargeback guide here.
Join our “Data is the New Currency” webinar to learn more about managing disputes and increasing profits.  Register here.

In revised standards to technical document AN 2202 posted on the Mastercard Technical Resource Center, Mastercard has determined to impose a global mandate that may have serious implications for how you do business. This mandate applies to merchants that use a negative option billing model.
Negative option billing is the billing practice of offering a sample or “free trial” of a product or service in exchange for payment card details and account information to be billed later. Generally, these contracts and payments automatically trigger upon completion of the agreed-upon term.
An increase in complaints from regulators, issuers, and cardholders prompted Mastercard’s enforcement of new procedures to mitigate deceptive business practices.
The negative option billing model is popular among many merchant segments, notably those offering subscriptions and memberships. In the revised standards published as AN 2202 in October 2018, Mastercard focused on the nutraceutical industry, specifically identifying it as a high-risk category.
Changes for those impacted
From Verifi’s review of Mastercard’s document, we believe any business engaging in the “free trial” or negative option billing model, where there is an exchange of a physical good, may now be deemed “high risk.” Also, merchants using this billing model are required to be designated under the Merchant Category Code 5968, Direct Marketing, Continuity, Subscription Services. Acquirers are required to register physical goods merchants using negative option billing through Mastercard’s Registration Program (MRP) to support tracking to ensure compliance. Services and digital content merchants are not currently included in these changes.
Your acquirer will work with you to execute changes in operational processes. Below is an outline of those processes, as referenced by Mastercard:

• Merchants must initiate the trial period on the date the product is received by the cardholder.
• E-commerce merchants must include the URL of the website where the cardholder initiated the purchase on their cardholder descriptor. Mail Order/Telephone Order merchants must provide a valid and easily accessible phone number.
• All recurring payments processed through the same acquirer must occur under the originating merchant ID for the initial payment.
• Following the trial, and before recurring billings begin, merchants must provide each cardholder the following information and obtain the cardholder’s explicit consent to bill the recurring payment amount:
• Payment transaction amount
• Payment date
• Merchant name and billing descriptor
• Subscription cancellation link with clear instructions
• With each attempted authorization, merchants must send a receipt to the cardholder including instructions on how to cancel the service.
• Merchants are required to provide written confirmation to the cardholder upon cancellation of a cardholder’s trial period or negative option billing plan.
• Acquirer’s must maintain transaction verification information for at least one calendar year

Verifi’s Chargeback Prevention Solutions
If you’re not already using Verifi’s chargeback suite, now is the ideal time to get started! According to a recent report by Javelin Strategy & Research, commissioned by Verifi, cardholders bypass the merchant to initiate a transaction dispute with their issuer up to 76% of the time.
With increased visibility to recurring transactions, it can be inferred that your chargeback volume may increase. Increased visibility is great in providing outstanding customer experience, but as we have witnessed, the issuer is still likely to be the first contact for cardholders to initiate a transaction dispute.
With Verifi’s Order Insight®, you can provide detailed billing descriptors as part of actual transaction data. This helps to clear up billing confusion and provide cardholders with all the details of their purchases, directed through their issuer’s online or mobile channels. This same transaction data is supplied to the issuer’s call center representatives, where trial and recurring payment amounts, terms, and consent/authorization data are reviewed with cardholders in near real-time at inquiry or dispute.
Verifi’s Cardholder Dispute Resolution Network™ (CDRN®) keeps you protected. Our patented closed-loop network provides you the opportunity to resolve transaction disputes directly with cardholders, rather than involving your acquirer or any card brand.
What’s Next
Mastercard will begin enforcing these operational updates on April 12, 2019. We will provide any updates on these changes as they become available from Mastercard.