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In a dreamy world, consumers and merchants could exist in a retail space without the fear of fraud or fees. Goods and services would be fulfilled and delivered from time to time, every time. Purchases could go steadily from start till the end.

Unfortunately, the reality is far away from this truth.

Merchants always have to look for something which is new, more innovative, or creative ways to meet consumer expectations. Parallel to this, they have to dodge their businesses from chargebacks, which present an increasing threat to the online marketplace. This challenge calls for skilled knowledge.

In this blog, we’ll talk about the role of a chargeback analyst. We’ll explore their aim, how effective they can be at securing revenue, and your options for implementing this role into your business.

Know About Chargeback Analyst?

A chargeback analyst is a payments industry professional mediator who works with banks, processors, and card networks on the side of a merchant. Their primitive job is to introspect chargeback data to help dissolve customer disputes and erase chargeback risk factors.

A chargeback analyst plays a major role in managing futuristic or you can say long-term chargeback risk. They review and gather information snatched from past disputes to learn and understand the patterns or trends. They can then use that insight to develop a strategy that will prevent chargebacks from happening.

Any problems that pop on a consistent basis need to be communicated to the concerned party. For example, the analyst may look and point at the vulnerabilities in your fraud management strategy, and provide a proper strategy for how to deal with the problem. They may also make recommendations for a fluctuation to policies and procedures, helping to secure the recurring errors or missteps.

That’s a basic gist. Now, let’s get more specific.

The Work of a Chargeback Analyst

A chargeback analyst takes the burden and responsibility for all the in-depth data and communication features of chargeback processing.

Your analyst is a logical and practical “buffer” for your business. They are surviving in the environment to help and secure disputes when possible, and fight back against any that occur due to chargeback abuse. Their day-to-day work may include:

MONITORING CARD SCHEMES & REGULATIONS

Let’s be practical: This field changes from time to time. Keeping an eye on the various rules and regulations for each card network, bank, and law can be a full-time job all by itself. A chargeback analyst has to know these systems inside and out to help you maintain the balance of compliance with all industry rules. Perhaps one of the amazing reasons to employ an analyst is for this purpose, alone.

EVALUATING DISPUTES

The chargeback analyst’s primitive job is to investigate the validity of any claims or disputes that may proceed to chargebacks. This includes owning any chargeback alert and response systems, as well as any additional software that compiles transaction historical data. The analyst works deeply with other operational departments to provide reports and data for incoming disputes, decide which claims are valid, and which claims to fight.

ANALYZING RISK

There are lots of facets of your business that could influence your overall chargeback risk without your concern or knowledge. A chargeback analyst can go through your business from end to end, diagnosing risk factors and determining how best to deal with these issues. Your analyst can assist you to optimize processes without exposing yourself to more disputes.

MERCHANT DEVELOPMENT

A good chargeback analyst would be empowered to offer important and delicate insights and training that can guide your team toward better internal practices so to enhance your performance. An analyst is in charge of monitoring and recording data relevant to the merchant’s incoming disputes. So, they are well-placed to offer development and documentation to optimize processes. They may go next to just chargeback reduction and improve efficiency in other areas of the business as well.

Look Into Your Business Do You Need a Chargeback Analyst?

In a word: yes. I guess nobody will leave this chance of it.

Merchants lose a bunch of dollars every year to chargebacks and their resulting fees. That trend is only going to get worsen and worsen as E-Commerce takes over international markets.

Some merchants might have the tools and tricks and staff they need to manage these tasks without assigning a specific individual to them. At a certain stage, though, it becomes impossible to do this and keep scaling effectively and efficiently.

The point at which you require a dedicated chargeback analyst—or multiple analysts—varies depending on your business’s unique needs the size of the organization. If you’re on the receiving end of hundreds of chargebacks per month, you may require an entire team to gather and manage this level of dispute. But, even if you see a comparatively small number of disputes every month, bringing on a chargeback analyst could still be a great investment that will initially show you some magical results.

Expertise accounts for a great deal. This should influence your decision when choosing to hire individuals to manage these tasks, or when considering a third-party solution.

How To choose a perfect Chargeback Analyst?

There are no strict rules and regulations for being a chargeback analyst. However, the job demands a certain set of hard and soft skills with the intellectual one also.

Typically, a chargeback analyst is regarded as a payment or chargeback specialist. An advanced degree in accounting or finance can help. However, it’s more important to have the hands-on know-how to manage chargebacks effectively with the perfect mindset and planning.

In addition to education and experience, a chargeback analyst must possess well-developed communication, organizational, best leadership, and analytical skills. The position involves regular communication with parties who could be upset about unfair transactions. Thus, the ability to remain friendly and professional under pressure is very crucial.

Finally, the ideal candidate is an expert at self-motivation and problem-solving. This person must be confident in making fast, well-reasoned decisions with minimal supervision with motivating skills. These skills might be small or seem to be minimal but plays a major role in the business field.

Getting an In-House Chargeback Analyst the Perfect Solution?

Savings, security, personalized knowledge…those all seem like creating arguments in favor of in-house chargeback analysis.

The answers aren’t as clear-cut as they initially seem, however. Having said that, let’s have a look at the most common assumptions about in-house chargeback management, and let you make decisions for yourself which option is right for you.

Requirement

Is this something that really requires a full-time position to deal with?

The Assumption

Chargebacks are only part-time jobs. An in-house analyst can handle chargebacks when necessary, then split their time performing other tasks which will create an efficient work deal with it.

The Truth

Between monitoring for fraud, changing industry regulations, and disputes data, managing chargebacks will be a full-time job. One chargeback analyst is probably not suited to the task, let alone a part-time analyst.

Familiarity

Isn’t it better for someone who has first-hand experience with the company and its culture to handle disputes?

The Assumption

Our people know the company and the product. They can represent us better than a third-party provider who doesn’t know how we operate.

The Truth

Knowing about your company is important, but it’s ultimately a minor part of the equation. It’s more important to have the expertise and experience to know the chargeback system inside and out, be able to individualize disputes, and have strong existing relationships with banks.

Education

Shouldn’t it be easy to get an in-house chargeback analyst up to speed?

The Assumption

There will be a huge learning curve. However, once we understand the basics, we’ll be able to manage our own chargebacks with no problem.

The Truth

The rules and regulations along with the card networks are constantly changing. The evolution of technology means new problems and threats will continue to come in the way. Without constant inspection, your business could take a serious hit before you’re even aware of the risk.

Will a Chargeback Analyst Be Quite Enough For Your Business?

Chargeback analysts typically work in collaboration with another expert: a chargeback manager.

This is an important distinction to make. These roles appear very similar, but they should be two separate placements. Each specializes in different levels of chargeback management.

Processes like represented are tough and time-taking. They require a lot of research, meticulous record-keeping, and the ability to make decisions on the first go. A chargeback manager needs to know about the data collection and implementation stage, and also be able to communicate and transfer that information to all concerned parties in a timely and effective manner. In contrast, your chargeback analyst is focused on the finer details of parsing that data.

So, yes… you can manage chargebacks in-house. However, it’s a very tough task, and there’s a limited prospect of success. Before you make a decision, consider these questions:

  •       Are there any guarantees?
  •       Do you need on-demand assistance or long-term chargeback reduction?
  •       If considering a service provider, are there client testimonials available to validate their claims?
  •      Does either method support future technology and fraud trends?
  •      Do the up-front costs exceed transaction volume?
  •      Can this method analyze growth potential and budget accordingly?

Outsourcing some or all chargeback management responsibility doesn’t mean giving up control, nor does it mean that prior work will go to the bin. On the contrary, your previously-acquired data can make products and services more efficient. Remember: you want a service provider that works with your internal risk management efforts.

Our team works alongside your internal risk remediation team to deliver maximum revenue for your company, leading to more efficient staff allocation. Our efforts are backed by the industry’s only performance-based return on investment guarantee: if you don’t save today, you don’t pay.

Click below and see how much revenue you could recover by adding the Chargeback expert suite of tools and strategies to your operations.

March 25, 2022
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