Win and Fight Off Chargebacks
- December 24, 2020
If chargebacks are damaging your business’s bottom line and you’re rapidly losing revenue, you may be poised to fight and win chargebacks. Merchants and sellers who are looking to protect their best interests and stay in good standing with their payment processors know how vital it is to prevent and fight chargebacks. These are a rapidly growing problem within the e-commerce sector; the true cost of chargebacks goes well beyond the disputed charge amount. In fact, chargebacks can end up costing you twice the price of the original transaction.
Don’t allow chargebacks to be a cost of doing business going forward. Follow these tips to optimize your response strategy, win chargebacks, and recover any lost revenue. As a merchant or seller, it’s helpful to have a chargeback lawyer on your side to ensure you go through the process correctly.
Know the Process
As part of this workflow, there are some critical things to know, as they will impact your win rates.
Invalid disputes can and do happen
Make sure you’re not dealing with an invalid chargeback, such as those filed after the deadline, those that don’t have the correct reason code or those that don’t have the required supporting documents.
The review process isn’t perfect; as a result, many invalid chargebacks can fall through the cracks. That’s why not every chargeback you will get is legitimate. Mistakes can and do happen, and if you receive an invalid chargeback because it fails to adhere to the card brand’s regulations, it’s relatively easy to fight and win this.
Make the response easy to review
The acquirer will review all chargeback responses, and will only forward certain ones to the issuer for a decision. If your case isn’t advanced, you cannot win. This is why you need to ensure your response is easy to review and forward to the issuer.
Check the Expiration Date
If it is decided you can fight the chargeback, the notice will include a response deadline that you must adhere to. Failure to respond on time means your case won’t advance. It’s a good idea to respond at least three days ahead of the deadline to ensure it gets in on time.
Research the Reason Code
Each chargeback has a reason code that explains why the dispute occurred. This will help you determine what kind of evidence you will need to include in your response.
To win a chargeback dispute, you have to present compelling evidence that will persuade the cardholder’s bank to take another look at the case. You will have to prove that you:
- Have verified the shopper’s identity
- Have processed the transaction properly
- Described the merchandise or service accurately
- Delivered the item as you have promised
Send a Rebuttal Letter
Your winning chargeback response must include a rebuttal letter, which is essentially an introduction to your response while providing an overview of the evidence.
To maximize your business’ profitability, it’s crucial to fight all chargebacks and win as many as you possibly can. You don’t have to manage this on your own. You want to boost your odds of winning, naturally, which is why you should partner with a skilled chargeback lawyer so he or she can fight for you. This frees up your time to focus on what’s most important: attending to and growing your business.
In the end, there’s no magic bullet that will work against any and all chargebacks, but there is a winning formula that gives you the best odds of success if followed correctly. If you stick to this formula, you will see positive results when it comes to getting false and fraudulent chargebacks dismissed.
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