How To's

How to win a chargeback dispute as a merchant

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Chargeback claims can be valid o invalid. Valid claims are caused by real issues with the product or service and issues with the site while invalid chargeback claims are the product of ingenuine clients who want to take back the money without having to pay for the product or service. 

Chargebacks can have a huge financial loss on your business, which is why you should focus on disputing invalid chargeback claims. 

The first step to win a chargeback dispute is to know how the process works

Chargebacks are fees you have to pay when a customer reverses a payment transaction.  Understanding how this process works can help you file successful rebuttals especially when a customer files a fraudulent claim.  The process often starts after the client has already made the payment and the goods/services are on the way or already received by them. 

Chargeback processes often involve four steps: first the customer files a chargeback claim with their bank or credit card holder. Next, the merchant is notified on the pending chargeback and given a timeframe for a response depending on the bank. Next, you gather all evidence that proves the transaction between you and the client was valid or they received the goods and services then send it to the bank/credit card holder. Finally, the bank/credit card holder determines if the chargeback is worth fulfilling. 

Check the reason codes for the chargeback 

When a customer files for a chargeback dispute, they always have a reason code. This helps merchants and the ban/credit card company understand the reason for the disputer. It can help you determine what kind of evidence you will need to present to dispute the chargeback claim. 

The reason codes will also help you to compile data from customers about chargeback claims. With this information, you can identify what transactions affect your revenue, common reasons for chargeback claims from your client and products that trigger chargebacks more frequently. 

Collect compelling evidence against the chargeback

When you receive a chargeback from a client, you have two main options: you either accept it together with the financial loss for the product you sent out or two bring out compelling proof and evidence that the entire transaction was legitimate and the card owner actually got the product they paid for with that card. 

Compelling evidence varies depending on the type of business you fall under. Banks and credit card companies will have different standards for different types of businesses. 

 As a business owner or merchant, when you decide to dispute a chargeback, you need transaction evidence to support your rebuttal.  When a bank or credit card company reverses a transaction, it is taken directly from your bank account together with a refund fee. To get your money back, you have to fight/rebut the transaction with clear evidence showing the entire process was legitimate. 

Write rebuttal letters

Chargeback Claim

To win a chargeback claim, you will need more than compelling evidence. A rebuttal letter will help you communicate with the bank/credit card company better. Carefully construct a rebuttal letter that summarizes your reasons for disputing the chargeback. The rebuttal letter does not need to be long: you should be clear and precise. Do not let your frustrations get ahead of you when drafting the letter regardless of the situation with your client. Keep it professional and specific. This means you should include details of the order in the letter if you want to win the chargeback claim dispute. 

Resolve your issues through customer service

Investing in customer service will do a lot of good in promoting your business relationship with your clients. Merchant customer relationships play a huge role in how you both act in case of an issue like chargeback claim. Having an employee trained in customer service to communicate with the client, bank and credit card companies will help you ease the chargeback claim process. Customer service will communicate with the client, monitor deliver, answer questions on returns and work on combating invalid chargeback claims. 

Final word

To prevent chargeback fraud in future, you should also get an anti-fraud detection system that offers chargeback fraud detection. This will help you save on so much money in the future and prevent the hassle of chargeback claims rebuttal for your business. 

Pooja Shah
Pooja Shah is a Content Writer at Financesage.net. It is a blog where I cover financial tips related website which is working towards investors to make better financial decisions and make the best choices while buying financial things and for a better financial life.

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