Chargeback representment or Chargeback reversal is the process by which merchant dispute the chargeback or dispute raised by the customer after collecting the evidences and other information to prove that transaction was successful as per knowledge of the customer. If the merchant provide the proper proof than issuing bank may reverse the chargeback and returned the funds to the merchant. In case of credit card fraud, the merchant is held responsible for all charges.
Before you represent the chargeback, keep the following things in mind:
1. Think about the cost associated with the case. Acquirer bank charges the fee. If the cost of representment is more than the fund you will get back, there is no point of disputing the chargeback.
2. Collect all the evidences, proof of delivery, proof of customer’s acknowledgement & all the supporting documents that prove the transaction was valid.
3. Check with your acquirer bank, if representment makes sense or not.
4. Represent the chargeback in the time frame. Merchant only have limited time to dispute the chargeback or represent the documents.
When the banks process the chargeback, it assumes that there is the fault of the merchant and customer is always right. The representment process should be handled very carefully.
The chargeback is raised by the customer when they are not satisfied with your products and services. Chargeback that are initiated by the issuing bank are the chargebacks where there is transaction processing error. Generally banks handle the case themselves without any involvement of the merchant. Other chargeback cases are passed to the merchant. Merchant should not always believe on the reason code mentioned as it can be the case of friendly fraud too. If the case is of friendly fraud, merchant should for sure represent the chargeback with proper evidences as it is a fraud situation.
Merchant should represent the chargeback in the time frame of 7 days or as per the acquirer’s terms with compelling evidences. The evidence plays a major role in chargeback reversal. The evidences are required to be submitted to the acquiring bank. Acquiring bank will pass the same to the issuing bank.
If the issuing banks find the evidences compelling and satisfactory, chargeback may be voided and merchant can get the money back into the account.
Signed Proof of delivery (If product based business)
Proof of services (If services based business)
Any sort of communication with the customer showing successful delivery or satisfaction with quality
A legible copy of the sales receipt
Delivery confirmation for items shipped to an address matched with AVS
Evidence that some or all of the transaction data had previously been used for an undisputed purchase
Proof of customer’s acknowledgement
Any type of email confirmation sent out to customers when they’ve purchased the products or services
Print screens of Website showing the information mentioned about products or services, Proof that customer have already read information before initiating the transaction.
Proof the purchase was made by a member of the cardholder’s family or household
A checked ‘accept’ box or signed confirmation for the use of Dynamic Currency Conversion
Outsource Chargeback Representment Process
Chargeback representment is the process of which utmost care has to be taken off. It is a complex process of which your in-house team can be unaware of. Every chargeback comes with the reason code and your in-house team has to understand the code and represent it accordingly. If not you may lose even the chargeback which was because of the friendly fraud. You have to use right tools to monitor chargebacks, collect evidences, representment on time. If you are not winning at least half of the cases than you are into a loss.
You can outsource the process or hire a chargeback prevention companies who can represent your cases. Chargeback prevention companies have the expert team who work on each case with care and collect all the evidences. They will find the correct reason of the chargebacks and work with their team and represent the dispute in time frame. They will also win more cases and get your revenues back.
Hire Chargeback Expertz today and we will handle your Representment Process.
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