Chargebacks can be very prominent and complicated for a merchant. It does not matter how big or small business you own, the chargeback can impact your business in terms of time as well as money. A merchant can Fight Chargeback and try to win the chargeback in order to save his money and time. After getting the notification of a chargeback the first thing that comes to mind is, “Should I fight every chargeback?”
In order to decide whether you should Fight Chargeback or not, you need to check for various reasons. Here in this article, we are going to discuss the tips and tricks that will help you to Fight and Win a Chargeback.
Tips And Tricks That Will Guide You To Fight Chargeback – Chargeback Expertz:
Understand the Type of Chargebacks – Chargeback Expertz:
First of all, you need to understand the type of chargebacks, whether it is fraudulent or non-fraudulent. Fraudulent Chargeback are of two types:
- True Fraud
- Friendly Fraud
The fraud chargeback is where the chargeback occurs due to any fraudulent activity. Whereas Non-Fraudulent may occur due to product quality dispute or non-deliverance of good(s).
True Fraud – Fraudulent Chargeback:
True Fraud is when someone else made the purchase in disguise of the cardholder. The true fraud is simply a case of Identity Theft where the cardholder doesn’t know about the purchase. Here, in this case, the Debit/Credit card of the cardholder is used by someone else and the purchase is made.
In the case of Identity Theft, there will be no need of Fighting Chargeback as the customer is already unsatisfied. If a Merchant decides to Fight Chargeback against True Fraud then there are chances that he will affect his reputation.
Friendly Fraud – Fraudulent Chargeback:
The Friendly Fraud can occur when the cardholder refuses to accept that he/she authorized the purchase. This is also known as Shoplifting or Cyber Shoplifting, where the customer makes the purchase and then refuses of it.
The merchant should fight chargeback in the case of Friendly Fraud, with a solid evidence to debate the chargeback. If the merchant does not fight against the Friendly Fraud then it will only increase the ratio of these types of chargebacks.
Non – Fraudulent Chargeback:
These types of Frauds can occur because of the issues in the quality of goods and services. The cardholder can also say that he/she didn’t receive the goods or services. The Non – Fraudulent chargeback will affect your reputation under the Merchant Processor. These frauds occur under the claim of damaged or defective goods.
So the Merchant must need to fight chargebacks against the Non-Fraud. To fight these kinds of chargebacks you need to find the cause of the dispute. First, understand why the customer is going to the bank instead of coming to you. After that, research thoroughly before debating for the chargeback reversal.
Good understanding of the Reason Codes – Chargeback Expertz:
For the Chargeback Representment, it is important to have a good understanding of the chargeback reason code. Every Chargeback comes with a Reason Code, so it is mandatory to have a deep understanding of the Reason Code. After receiving the chargeback reason code, you need to explore the abnormal activities, if any. If found any abnormal activities or was there fraud in the transaction then act accordingly. Read the terms and conditions and then collect all the proofs and documents that are required to debate the chargeback. Now, you can fight chargeback with a valid proof and documentation by filling for the chargeback reversal.
Find the Cause of the Chargeback – Chargeback Expertz:
Once received the chargeback request, you need to find the cause of the chargeback. If this is a non-fraud chargeback then you can contact the customer to find the root cause of the issue. The chargeback can be caused by any technical issue or any issue with the customer support. You have to make sure that you maintain the best customer services to reduce chargeback ratio.
If the chargeback is valid then there will be no need to debate the chargeback or initiate the refund. But in case of defective goods or services, you can ask the customer to dispute the chargeback by offering them a refund. Good customer services will reduce the risk of chargeback and help you to understand the requirement of the customer
Try to Prevent the Chargeback – Chargeback Expertz:
If you provide the accurate information related to your refund policies then chargeback prevention is possible. It is better to prevent the occurrence of the chargeback instead of Chargeback Representment.
How to achieve Chargeback Prevention:
- By focusing more on the customer satisfaction
- Defining correct return policy and many others.
- Mention the proper information about the return and refund policies.
- Making sure no confusion pertains.
- Contacting your customer as well as taking feedbacks.
- Working towards better services.
We have explained the tips and tricks that you can follow to decide whether you should fight chargeback or not. For more details, you can always reach the Chargeback Expertz. We have experts who will help you guide in the right direction to overcome all your chargeback related issues. Also, we have provided you the toll-free number to talk to an expert, chat-box to chat with our representatives and you can email us with a description of your issue.