It is possible to minimize the risk of chargebacks with the use of services and techniques available in the market but it is next to impossible to avoid it completely. Chargebacks can happen even if you are fully aware of the company’s policies with zero transaction errors or even if you take care of the on-time deliveries. However, if the merchant has indulged in any type of fraudulent activity, he would never be able to defend against them.
Defending Process Against Chargebacks
Although it depends upon acquiring bank and payment processor but generally defending process has following steps involved:
1. Receive Chargeback: When a customer initiates a chargeback, the merchant is notified through an e-mail or it is displayed on the Merchant Panel. As the merchant gets limited time to respond to the chargeback received, make sure that notification is received as soon as possible.
2. Dispute Chargeback: If the merchant is sure that the chargeback is not genuine and enough evidence can be provided to prove it, it is better to dispute (defend) the chargeback. Normally, a merchant gets 5-7 days to react to the chargeback received, so without wasting much time the merchant should prepare analytical report strategy and gather evidence (documents) like:
• Billing details
• Server logs
• Shipment receipt
• Delivery confirmation receipt
3. Customer’s Reaction: It is possible that the merchant succeeds successfully against chargebacks, but there are chances that the customer may react back. Be prepared to challenge the arguments from the second attack. All you have to prove is that you are right and are not indulged in any type of fraudulent activity that the customer claims.
Things to know
Reason Codes: To execute a chargeback, a customer needs to provide a valid reason code. There are specified predefined reason codes and the customer must choose one out of the provided codes and must state the same to the issuing bank. After verification, the issuing bank provides the reason code to the merchant. Following are the reason codes, which are required to proceed with a chargeback:
1. Technical:
Expired card authorization
Non-sufficient funds
Bank processing error
Stellar Service: Merchant can control the increasing number of chargebacks by simply offering stellar customer service. A courteous and polite employee can defuse the situation where the customer wants refund or chargeback. In this situation customer might understand the need of security, this, in turn, helps in maintaining goodwill towards business and decrease the rate of chargebacks.
Get more information visit website – www.chargebackexpertz.com
Defending Process Against Chargebacks
Although it depends upon acquiring bank and payment processor but generally defending process has following steps involved:
1. Receive Chargeback: When a customer initiates a chargeback, the merchant is notified through an e-mail or it is displayed on the Merchant Panel. As the merchant gets limited time to respond to the chargeback received, make sure that notification is received as soon as possible.
2. Dispute Chargeback: If the merchant is sure that the chargeback is not genuine and enough evidence can be provided to prove it, it is better to dispute (defend) the chargeback. Normally, a merchant gets 5-7 days to react to the chargeback received, so without wasting much time the merchant should prepare analytical report strategy and gather evidence (documents) like:
• Billing details
• Server logs
• Shipment receipt
• Delivery confirmation receipt
3. Customer’s Reaction: It is possible that the merchant succeeds successfully against chargebacks, but there are chances that the customer may react back. Be prepared to challenge the arguments from the second attack. All you have to prove is that you are right and are not indulged in any type of fraudulent activity that the customer claims.
Things to know
Reason Codes: To execute a chargeback, a customer needs to provide a valid reason code. There are specified predefined reason codes and the customer must choose one out of the provided codes and must state the same to the issuing bank. After verification, the issuing bank provides the reason code to the merchant. Following are the reason codes, which are required to proceed with a chargeback:
1. Technical:
Expired card authorization
Non-sufficient funds
Bank processing error
Stellar Service: Merchant can control the increasing number of chargebacks by simply offering stellar customer service. A courteous and polite employee can defuse the situation where the customer wants refund or chargeback. In this situation customer might understand the need of security, this, in turn, helps in maintaining goodwill towards business and decrease the rate of chargebacks.
Get more information visit website – www.chargebackexpertz.com
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