Ten Tips To Avoid A Chargeback – Part #3

Nobody likes dealing with a chargeback.  It probably will cause you to lose money. You are certainly going to lose time. You may sully your clean reputation of never having a chargeback before.  You can lose customers over it.  There is nothing pleasant about it.  In our continuing series, we offer 10 more easy tips to follow to help you avoid a chargeback:

  1. Cautiously Issue Refunds

Refunding customers in an effort to keep down chargebacks can be counterproductive if the customer has already initiated a dispute.  It makes a chargeback reversal more difficult. Therefore, you should always attempt to confirm with the customer that they haven’t contacted their card issuer bank and disputed the charge before you initiate a refund.

  1. eContracts are Essential for Service Businesses

Incorporating eContracts is tremendously important for service businesses such ground transportation providers. Train your staff to send and receive an electronic contracts after performing services and before processing a payment to dramatically improve your chargeback win ratio.

  1. Know How Your Processor Counts ‘Reversed’ Chargebacks

Some credit card processors tally your chargeback count based on how many chargeback disputes were initiated against you, regardless of whether you win or lose. Others remove them from your running count if you successfully won. Knowing how yours works is important to developing your company’s strategy for either refunding or fighting chargebacks when a disgruntled customer complains about a charge.

  1. Discuss Chargebacks With Us Regularly

Have regular calls with us and make chargebacks a standing topic to discuss. We have both a different perspective and lack of operational knowledge about your business. Discussing both regularly can help you win more chargebacks.  Chosen Payments is always available for education on this topic.

  1. If You’re Using Recorded Voice Confirmations, Switch to eContracts

Unfortunately, the chargeback representment system is stuck in the stone ages. You may have implemented voice-logging for your own protection but the big card issuers are a little behind in this arena and don’t accept recorded calls as “evidence”.  Documents are still literally being faxed back and forth. This is why voice based order confirmations and customer authentications are not useful in fighting and winning chargebacks.  An eContract system is the best bet.

  1. Be Creative About Gathering Representment Evidence

When presenting “evidence” in a representment or response, think outside the box and be creative with compelling evidence; there’s a lot of data available, use it!  Again, if you need our help putting together a compelling battle, call us!

  1. Don’t Take It Personal

Customer acquisition costs and your reputation are not always lost just because a chargeback occurs. Chargebacks can be a misunderstanding and the customer relationship can be maintained; reach out and get clarification and attempt to rebuild the bridge.

  1. When Fighting Chargebacks, Use Device Fingerprinting & Social Mapping

A response to a chargeback that includes the purchased date and shipping information isn’t enough. Stitch together everything from social chatter to device fingerprinting to build your case.

  1. Leverage 3rd Party Data to Stolen Card Fraud

3rd party services like Feedzai, CyberSource, Kount and NoFraud in conjunction with a fast manual review process will help you prevent the acceptance of stolen payment card info.

  1. Fighting Chargebacks Improves Issuing Bank Behavior

The best chargeback prevention tip is to respond to all friendly fraud. That is fraud perpetuated by dishonest behavior among friends and family.  This includes a teen using his parents credit card to obtain something and then the parent disputes the charge even though the merchant has delivered.  Disputing illegitimate chargebacks challenges this faulty consumer behavior. Plus, it encourages banks to perform more due diligence in the future and approve fewer cases of friendly fraud by the same person