Merchants, if you can’t pinpoint the reason you lose all chargeback disputes then there’s one obvious explanation; you present data that’s not enough to back your claims. Resolving chargebacks has become all about data.
Changes in the Chargeback Landscape
The recent Visa’s VCR features a two-phase settlement system to resolve chargeback claims. And what retailers must learn is that while the bulk of disputes (nearly 80%, according to Visa) will be worked out by Allocation process— where one party takes the blame— the rest of the cases will be settled in collaboration process— where all parties must present relevant info to the credit card issuer to make a ruling.
And most interesting is the fact data remains the keystone for both processes. Visa is optimistic 15 percent of claims will be resolved through automation (to decide if the complaint should advance to arbitration or not) based on the data their systems collect.
Close counterparts MasterCard will be updating their resolution process too later in the year. So there’s much going on with chargeback resolution and data that merchants can’t afford to ignore.
Examples of data that matter in refuting Chargebacks
For example, the receipts customers sign on receiving shipped items can serve as credible evidence when a buyer claims they never received the product.
Use screenshots to capture pieces of info that can’t be printed
- On a PC, hit the buttons Ctrl and PrtSc.
- On a Mac, hit Shift, Command, 4, and then decide what portion of the screen you want to capture
For friendly fraud, you can follow up the buyer on social media. Who knows, you may come across a selfie they’ve taken alongside their newly bought item. Such a screenshot is usable as credible evidence.
Answers to some questions
For instance, providing answers to this list of questions could help you with friendly fraud cases.
- Did buyer use a CVV code during purchase?
- Did the buyer make any other purchases at the same time?
Build a reputation
Develop the mindset of a no-nonsense retailer who follows up claims and emerges victorious in cases where the allegations were a false alarm. The more you rise above the chargeback claims filed against you, the more card brands see your credibility. Similarly, do not hesitate to issue refunds.
Author bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both low and high risk merchant account holders. His passions include producing music and traveling.