First off, a chargeback is a charge that comes back to the business after being disputed by a customer. This can happen for several reasons: unrecognized charge, duplicate charge, and paid for, but unreceived item or service.
These are a few of the most common reasons, but most chargebacks fall under the umbrella of error, either on the part of the business or the consumer.
When the business fights these charges with substantiated evidence that they are fraudulent, it is known as a chargeback reversal.
Winning a chargeback reversal is not easy. The first step is determining whether the charge is worth the effort you are going to put in.
Sometimes the charge is low enough that it simply is not worth the hours it will take to contest. Most businesses have a threshold built into their budget to help determine what chargeback should be contested.
When that threshold is reached there are multiple steps that need to be taken to ensure the best chance of successfully fighting the charge.
The next step is to determine if the chargeback is valid or invalid. If the chargeback is valid, i.e. a customer returning an item, there is zero chance of winning and not worth your time.
If the charge is invalid, such as a customer not recognizing the charge because they forgot about it or there was a lack of communication in a household, you have a good chance of winning the dispute.
Proper records are essential to a chargeback reversal. The business needs to prove that the charge was made and the services or goods delivered.
To accomplish this task, the business needs to know exactly what forms and information the processing company wants to proceed with the chargeback reversal. If you fail to account for everything, the company will automatically throw the proceedings out.
A tip at this point is to maintain a professional composure. While you may be dealing with unpleasant customers or people, remember it is in your best interest to be polite.
When you draft your rebuttal letter to provide the reasoning for fighting the chargeback, make sure it is well written, concise, and professional.
The letter is the deciding piece for the process. It is where you highlight the information as to why the chargeback needs to be reversed.
Also, consider how often this is happening and determine if there is anything you or your business can do to prevent chargebacks from occurring. This is smart to do because too many chargebacks will impact your chargeback ratio.
The bottom line, chargebacks are a part of doing business. The key is determining when to fight the charges. Make sure you step into the process with the evidence in your corner.« Back to Glossary Index
Sed ut ullamcorper nulla, eu consequat turpis. Duis ac molestie orci. Suspendisse blandit ullamcorper erosCTA Button