Why fight chargebacks?
There are huge ramifications for not fighting chargebacks. Extensive chargebacks beyond 1% can cost you your account. Staff costs, the costs of goods/ service, shipping costs, excessive refunding, acquirers penalties. Unless there is a strategy to address chargebacks, you can’t do anything about it. Merchants require a certain level of expertise to be effective. There are number of different chargebacks each with their own reason codes, rules and effective techniques for representing. Having a full comprehension of the complexity surrounding each type of chargeback requires significant dedication of time and resources.
Common Myths and Misconceptions
- You can’t win chargeback disputes
- Winning chargeback disputes will reduce your monthly chargeback ratio with your acquiring bank
- It’s impossible to win a chargeback if you don’t have a signed receipt
- You can’t fight PayPal disputes
- Chargeback Reason Code 83 only includes true fraud and cannot be fought
- I’ll just prevent all chargebacks
- I’ll just recover all I can after I get hit
These are common misconceptions we hear day-to-day The best way to approach this is for merchants to employ an end-to-end chargeback management solution that gives them the best chance to effectively prevent and manage chargebacks to recover lost revenue. Separate the initial chargebacks from the ones that stand; focus on the “why”, why are they occurring, why am I not winning when I represent them?