You’ve been alerted to a customer chargeback, and you’re confident that this is a fraudulent claim. So, what do you do? You can do nothing and silently simmer with anger and frustration. Or you can decide to act on representment against the credit card dispute.
Fighting chargebacks and disputing fraudulent claims are among your innate rights as a merchant. You have the right to represent yourself and prove that the customer is making a fraudulent claim and abusing the chargeback process. The problem is that so many merchants mistakenly believe that this is a wasted effort guaranteed not to succeed.
The truth is that you do have the right to dispute chargebacks. This is the only way your voice can be heard, by speaking up and fighting for your rights when you’ve been wrongly challenged and are now a victim of a chargeback. Just as chargebacks were created to protect customers, you also have the right to use the chargeback dispute process to protect yourself and your business.
To begin, it’s important to be fully prepared and ready to win the dispute. This means learning what to do, what not to do, and how to judge when it’s best to simply walk away from the representment process.
Ready, Set, Act
As part of your initial preparation to respond to the chargeback, it’s important to know how not to get caught up and make the common mistakes that many merchants fall prey to during chargeback representment. These are some common mistakes to avoid:
- Assuming issuers don’t want you to represent: In fact, the opposite is true. From the issuer’s perspective, they want people to know that credit cards are secure. There is a general perception that credit card theft and fraud have run rampant, resulting in a cynical default position that may enable many people to file fraudulent chargeback claims. If you stand up and fight these invalid credit card disputes, you’re helping to show that credit cards are secure and safe. To do this effectively, you’ll need to learn how to identify which claims are valid and which are not. This is not something that can be done with guesswork or gut feelings. Seeking expert support on implementing a comprehensive solution that can prevent fraud from the start can go a long way to protect your brand and your business’s bottom line.
- Ignoring the chargeback reason codes: These reason codes are key to effectively winning a dispute. The reason code determines the information you need to provide when filing a representment. Each credit card type, such as MasterCard and Visa, has designated reason codes. Become familiar with the evidence requirements for each code, and learn the rules and regulations of the representment process. Not knowing these details can and will hurt your ability to win a dispute.
- Giving up too early: The dispute process can be lengthy and complicated. It can place demands on your operational resources. However, the long-term rewards are worth your time and effort. You’ll reduce the chance of a customer making further fraudulent chargeback claims, you’ll encourage issuers to be more diligent about analyzing customer claims, and you’ll inevitably reduce the instances of chargeback claims.
- Neglecting your customer service team: Your customer service team is critical in preventing chargeback claims. When customers know that they can quickly and effectively resolve their concerns with your customer service team, they’ll be less likely to become frustrated and file a credit card dispute, now and in the future. Also, make sure that your customer service team is keeping thorough records of every customer interaction. This includes keeping emails, recording or documenting conversations, and ensuring they have evidence of the efforts made to resolve the customer concerns. Easy access to this information can help you make a strong representment case.
- Trying to do it alone: Chargebacks are complicated and winning a dispute is complicated, which is why you might not always be able do this alone. Too many merchants get motivated to act, but they often lack the expertise needed to successfully represent a chargeback. Working with a representment partner allows you to focus on your business, so you can be at ease with the knowledge that the real chargeback experts are working for you to win the credit card dispute. This all adds up to less time spent, money saved, less stress, improved customer relations, and protection of your brand and valued revenue stream.
Ready to Represent
Becoming better informed and preparing for a confident chargeback representment may require some effort, but know that it is often in your best interest. We understand these challenges, and we are here to help you. We urge you to learn more about the common mistakes that merchants make during the dispute process, and know that we are on your side. Merchants who take action and successfully win credit card disputes help to improve the tenor and strength of the payments industry and everyone who plays a part in it––business owners, issuers, investors, and your customers.