Find the Right Chargeback Solution With These 7 Smart Questions

  Chargebacks costs merchants close to $150 billion every year. That’s right: Billions of dollars are lost trying to navigate the chargeback process. And, no matter the amount of effort merchants put in, the process never seems to get easier.   But, then again, you already know that. After all, that’s why you’re looking for a chargeback solution.  

Chargeback Solution

  [noun]/* chärj • bak • sǝ • loo • SHǝn/   A chargeback solution is the strategy by which a merchant responds to, and combats incoming chargebacks. This can be built as part of an in-house, DIY approach, or outsourced by working with a third-party solution provider.   In this article, we’re going to talk about the three basic approaches you can take to managing chargebacks. We’ll look at the solutions available, and reveal seven smart questions you should ask when evaluating any chargeback management option.  

Table of contents

Find the Right Chargeback Solution With These 7 Smart Questions 3 Basic Responses to Chargebacks #1 | Do Nothing #2 | Do it Yourself #3 | Invest in a Solution So Which Chargeback Solution is Best? 7 Smart Questions to Ask a Solution Provider 3 Types of Chargeback Solutions Fully-Managed Solutions Self-Service Solutions Dispute Prevention Solutions The Right Solution for You  

3 Basic Responses to Chargebacks

  Chargebacks gobble up time, money, and other resources. Staff get diverted to deal with the dispute. As a result, they’re focused on recovering lost revenue rather than on generating new revenue. Struggling against chargebacks can feel like a no-win situation…but what else can you do?   Well, you have three fundamental options when it comes to your chargeback response:  

#1 | Do Nothing

  You can try ignoring the problem. Of course, ignoring persistent chargebacks won’t make them go away. In fact, the issues will only get worse. There are many practices and behaviors that cause disputes, and by ignoring them, you’re letting chargeback triggers go unaddressed. That will only cause the situation to deteriorate further.  

#2 | Do it Yourself

  You can engage in DIY chargeback management. This is much more difficult than it sounds, though. Chargeback rules are complex. Processes vary based on the card scheme and are liable to change at any time. Second, each dispute requires individualized attention. Your time and energy should be spent growing revenue, not recovering it. Finally, your chances of winning are dismally low, with fewer than one quarter of merchants surveyed winning a majority of their disputes.  

#3 | Invest in a Solution

  Rather than ignoring chargebacks or trying to manage them on your own, you can turn your disputes over to experts. Professional chargeback management takes care of recovering revenue and long-term chargeback reduction. As a result, you can focus on maximizing revenue and eliminating waste.  

So Which Chargeback Solution is Best?

  You’re already reading this article, so it’s safe to assume you know that doing nothing is not a real option.   But, is it better to handle chargebacks in-house? Or should you utilize a third-party solution? What’s the right strategy? It’s simple: the best chargeback solution is the one that works for your business.   A “one-size-fits-all” approach won’t work for every merchant. In many cases, your best bet is to combine built-in prevention and management systems with a third-party chargeback solution provider.   According to a case study from Chargebacks911®, one retailer saw an 18% reduction in chargeback issuances, and a 200% increase in chargeback recovery, after just 30 days of third-party assistance.  

7 Smart Questions to Ask a Solution Provider

  As you might expect, not all chargeback solutions are created equal. So it’s important to know what benefits you should expect from a reliable chargeback solution provider:  

WILL THEY HELP ME PREVENT CHARGEBACKS?

  Every chargeback filed means more revenue loss. Even if you manage to win a dispute, you still lose the cost of administration, plus the chargeback fee. The best way to protect revenue from chargebacks is to prevent them from happening.  Chargebacks911 offers various ways to prevent chargebacks from being filed in the first place.  

WILL THEY SAVE ME MONEY?

  There’s one fundamental question to ask yourself when you consider implementing a new solution: will this save money? If the answer is “yes,” then it’s a wise investment. Chargebacks911 is the only solution that guarantees a return on investment.  

ARE THEY CHARGEBACK EXPERTS?

  An outsourced chargeback solution should offer the benefits of specialized expertise. It allows you to be agile and responsive to changes in the industry, without the need to consistently monitor technology changes and track policy updates on your own. Chargebacks911 is the industry leader with decades of payment experience available to our customers.  

WILL THEY IMPROVE FRAUD DECISIONING?

  Many merchants use risk scoring to identify and decline potentially fraudulent transactions. Unfortunately, these systems use logic that, if improperly trained, will result in false positives. The right chargeback solution will feed accurate data into your fraud prevention systems so you can reduce fraud while processing more transactions. Chargebacks911 API is agnostic and works to inform your current systems.  

WILL THEY KEEP MY DATA SAFE?

  Your customers are the lifeblood of your business. Protecting their data should be one of your highest priorities. Chargebacks911 is one of the few chargeback solutions that maintains the highest level of PCI-DSS security compliance.  

WILL THEY PROTECT MY REPUTATION?

  Chargeback prevention isn’t only about recovering revenue and protecting your bottom line. If your chargeback ratio gets too high, your acquirer can terminate your account, making it impossible to accept payments. Chargebacks911 is dedicated to ensuring that you maintain your processing and keep your payment providers happy.  

DO THEY HAVE THE DATA?

  You’re fighting an uphill battle with in-house management. You’re trying to deploy a comprehensive strategy with very limited information. You can offset that lack of insight by selecting the right chargeback solution provider. Chargebacks911 is the largest chargeback management firm which means we have access to a huge amount of data.  This gives us (and you) a large advantage over the competition.   You’re on the receiving end of more and more chargebacks every month. You don’t have to put up with the headache of trying to manage chargebacks any longer, though. The solution is right in front of you.  

3 Types of Chargeback Solutions

  So, what solutions are available and how do you decide which option is right for you? There are three basic types of chargeback management solutions to consider:  

Fully-Managed Solutions

    A fully-managed solution is a “hands-free” option. Dispute prevention and representment are handled entirely by a third party. This option is best for companies that experience a steady volume of chargebacks every month.  A fully managed solution allows you to maximize revenue without having to hire chargeback experts or manage an internal team.  

Self service solutions

    Self-service options blend external management tools and software with your internal systems. You are still responsible for your chargeback management, as well as any prevention solutions. But, a self-service platform will provide reporting as well as a variety of tools to manage your process.  This option is best for smaller companies that are dealing with only a few chargebacks per month.  

Dispute Prevention Solutions

    There are a variety of tools that let you intercept payment disputes and resolve them before they turn into chargebacks.  These can either be implemented alone or as part of a larger chargeback management solution. They are particularly valuable tools for businesses with higher-than-average chargeback risk.  

The Right Solution for You

  It doesn’t matter if you need a fully-managed chargeback solution, or just some help here and there. Chargebacks911 has you covered. We challenge the status quo by proving how effective comprehensive chargeback management can be. Chargebacks911 offers:   Customized Solutions: A dual-layer approach that addresses both sides of the issue (prevention and representment) drives revenue recovery and reduces chargebacks in the long term. Effective Representments: Approaching the representment process from a data-driven, tactical angle will help recover revenue and drive long-term growth. Intelligent Source Detection: No more relying on chargeback reason codes. ISD technology lets you fight chargebacks based on the true reason, not just the reason code. Merchant Compliance Review: There are more than 100 potential errors and missteps that can cause chargebacks. Professional review lets you eliminate triggers that lead to chargebacks. Dispute Prevention: Stop chargebacks before they’re ever filed. Chargeback alerts ensure that you never get caught off guard by another dispute.   Chargebacks911 has what you need, when you need it.   We offer highly scalable chargeback solutions customized for any business, of any size, in any industry. Call us today and claim your free demo.

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  Hey, hey, we’ve got news!   We’re ecstatic to announce Chargebacks911 has been nominated for the Best Application of AI or ML in Financial Services award at the Card & Payments Awards 2022!   The Card & Payments Awards are presented by Prime Sponsor, TSYS. Additional support for the awards is provided by Ingenico Group, American Express, Banking Circle, Visa, Mastercard, and more. The event is described as a “must-attend event” for professionals in the global payments industry, recognizing achievement and innovation in the market.   Some of our fellow award nominees this year include Banking Circle, Capital One, Monzo, and Visa, just to name a few. Good luck to all our fellow honorees!   “We’re very honored to be included amongst such esteemed members of the payments industry,” says Chargebacks911 COO Monica Eaton-Cardone. “We’ve been dedicated to providing exceptional service for our clients and customers since the company was founded in 2011. Our aim has always been to be a trusted leader in fintech, and I believe, being nominated for this award is acknowledgement of that profound commitment to success.”   The 2022 Awards will take place on May 5, 2022 at JW Marriott Grosvenor House on London's Park Lane. Join us for an opportunity to celebrate industry achievements, whilst meeting the key players from across the sector.We look forward to seeing everyone there!   Click here to learn more about the Card and Payments Awards 2022, and to see a complete list of finalists.

‘Fraud & Chargebacks in Travel’ Report Suggests Ongoing Threats to the Travel Space

  The travel industry was one of the sectors hardest-hit by the Covid-19 pandemic. But, although the reopening process is well underway and things are getting back to normal, the danger is far from over for airlines, OTAs, and other merchants in the travel space.   Fraud & Chargebacks in Travel 2021, a fascinating new report from Chargebacks911 and travel research firm Airline Information, debuted on October 21. The new report surveyed more than 100 respondents across the airline, hotel and travel-related sectors, offering a thought-provoking look at the scale of the chargeback challenge. The report also proposes solutions for mitigating chargeback threats and payment fraud in the travel space.   “[The travel industry] continues to lose revenue; refunds are requested on a massive scale and the ever-rising numbers of chargebacks spell the collapse of several travel providers worldwide,” says Chargebacks911 COO Monica Eaton-Cardone. There’s been a clear structural change in chargebacks after COVID-19…Merchants can’t afford to ignore this problem.”   Merchants in the travel space are more likely to engage in chargeback representment than those in other industries. Despite this, the results of the study issued a stark warning to the industry: a 10% chargeback reversal rate could prove to be a fatal blow to a travel merchant’s chances of survival in the post-Covid landscape.   Click here to download the full report.