Common Mistakes Merchants Make When Fighting Chargebacks

Chargebacks are a complex and expensive problem facing all types of merchants. And sometimes, most merchants find fighting chargeback disputes to be draining and frustrating. For one, the process will side with the customer, since credit card companies and banks prioritize customer satisfaction. Because the process is tiring, most merchants are likely to make mistakes. However, that does not mean you should give up on fighting chargebacks. And while at it, listed below are some of the mistakes you should try and avoid.

Not Collecting Evidence

Ensure you have a database with the steps involved in making orders, from the time of order placement to the time a customer receives products and signs. When you have collected all this type of evidence, it is easy to prove that all things went well in your end. So, in case of any issue, you already have the necessary proof to prevent a chargeback.

Not Fighting at All

While trying to fight every chargeback dispute can be a waste of time, some situations are worth fighting for. Analyze each chargeback claim and ensure that where you have evidence to dispute a claim, you do so to avoid going on losses. Have a guideline where you will be able to identify which chargeback disputes to fight for and which to let go of. Arm yourself with all the evidence needed to prove there was no error on your side. This increases your chances of winning the dispute.

Not Communicating Clearly with Customers

Customers file chargebacks for many reasons. Maybe they are not satisfied with the product purchased, they do not recognize a transaction on their statement, or they feel like the product description was misleading. And while some of these issues are valid, it all boils down to how you communicate as the merchant. Clear communication between you and your customers prevents confusion.

Not Investing in Fraud Prevention Solutions

One of the best ways to fight a chargeback dispute is to try and avoid it in the first place. It saves you money and a team, as your team will not be tied down to fighting disputes. With services like Ethoca chargeback solutions, you can keep your fraud rates low, and you, your employees, and customers will be satisfied in the end.

Not Cooperating With Your Card Processor

At the end of the day, you and your card processor have similar goals. So why not partner with them? They have experience when it comes to handling chargebacks. That means they can advise you on how to deal with certain cases. In addition, they have the resources and the knowledge to overturn a chargeback.

Not Understanding Reason Codes

Ensure you and your team are updated on the codes for chargebacks. Each chargeback has a reason code that tells you the type of chargeback you are handling and why a cardholder filed a chargeback. This allows you to gather the evidence needed to dispute the claim.

As much as disputing a chargeback can be frustrating and time-consuming, it is better to do it. If you ignore the claim, your reputation and revenue will suffer.

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