How to create an effective chargeback representment case
So now that we’ve gone over why you should re-present, and how the process works, let’s go over the basics of creating an effective case. Yes there are several ways to go about this, but the steps you take matter when dealing with unwarranted chargebacks.
The first thing you need to consider is that time is of the essence.
If you don’t dispute quick enough, and the window of opportunity closes at the bank, the dispute is decided in favor of the customer, and you will lose the money.
If you do seize the opportunity quick enough, the next important step is to make sure that you have all the documentation and evidence clearly laid out. As mentioned earlier, be aware of the reason code, and also the card schemes involved, because this will give you a better sense of what will be required from you.
To stack the odds in your favor, be sure to show as many details as possible to prove that you did your due diligence to make sure that transactions are carried out correctly, and that you delivered a good product and service.
Some examples of evidence to include are, but not limited to:
- Your return policy as a copy or link form
- Photos and descriptions of the product, tracking information, receipts, and a confirmation that the customer received the item.
- Proof that the cardholder’s preferred currency decision (CPC), otherwise known as DCC choice, was not made by the merchant, but rather the cardholder.
- Evidence that the billing address that the customer entered matches the address the credit card issuing bank has on their records. You can do this through verifying if their AVS (Address Verification System) and CVV (Credit Verification Value) match, and this is why it is important to run AVS and CVV on transactions, whenever possible.
- IP address data that can verify that the location matches the location of the cardholder.
- Proof that the customer used the same transaction information to purchase a product previously, but did not dispute.
- Customer service emails with the customer, and/or chat logs proving your case.
- Proof that the customer was still using your services or website even after the dispute, or transaction, to purchase more products or browse.
These were just a few examples, so be sure to brainstorm any other evidence you can use…
So once you have the documents you need to make a compelling case, the next step is to create a chargeback representment letter that formally outlines the case.
Known as a chargeback dispute letter, or chargeback rebuttal letter, this document is the summation of your entire case, and therefore should have all the necessary pieces you need.
In essence, your end goal with this letter is to prove that the transaction was indeed validated by the customer, approved, and that the customer is actually the one who is in the wrong.
If you can lay out the facts in a very clear, logical way and without ad hominem attacks on the customer or any other party involved, you will increase your chances of being taken seriously.
Once these steps have been completed, you then need to submit it to your acquiring bank.
Your acquirer, who is your credit or debit card processor, will then take the letter and proof that you have, and submit it to the issuing bank. From there, they will decide whether the charge was unwarranted or not.
Remember, don’t overdo irrelevant details, but rather stick to the facts and explain them out as simply and logically as possible…
Why Outsourcing is your best option…
So by this point, you’re probably thinking to yourself, “This seems like a lot of work and a big headache!”
You’re right, it is…
And this is why in situations where there are one million and one details, room for massive errors, stress, and loss of revenues, you’re really better off choosing experts who know the chargeback representment process front to back, and can help you prevent and fight unnecessary loss of revenues.
This is where Helios Payments steps in…
Why outsourcing with us is the obvious choice:
- We help merchants extend the longevity of their MIDs by helping them avoid getting shut down by payment processors because of high chargeback ratios and automated underwriting.
- We use Ethoca and Verifi alerts, which helps you reduce chargebacks, and dramatically lowers the chances of your merchant account being terminated…
- We give merchants the right intelligence and reporting capabilities to take the right actions, at the right time, to further reduce chargebacks in the future.
Not to mention, we didn’t even talk about chargeback fees!
Considering the digital nature of eCommerce, consumer’s today may engage in “friendly fraud” more often than in traditional brick and mortar retail settings, and this can leave you with a huge chargeback fee.
This is why we offer 3D Secure authentication to establish clear proof that a customer made a transaction, so there’s no guesswork, just clear evidence.
Ready to stop “friendly fraud” and get back your hard earned revenue?
Getting started is easy and takes just 2 minutes. Click here to learn more…