One of the ﬁrst things to consider is whether you’re going to ﬁght every chargeback that comes through. Because of low win rates and the fees involved, it can sometimes make more sense to pick your battles. However, there is value in pursuing larger claims that you believe are errors or fraud. Big retailers tend to take this approach, letting smaller amounts go as the cost of doing business but contesting larger sales. Crucially, they respond within the time frames set by the card brands and use automated tools to collect and store information that can help them prove their case.
As Ben Satterwhite, Senior Product Manager, Merchant Services at Bank of America, says, “The best thing to do is respond to chargebacks quickly with the appropriate documentation. Build a documentation trail that proves you did what you said you would.” For example, keep billing information, shipping conﬁrmation and signatures so you can demonstrate that goods were delivered or services carried out.
Only the largest companies tend to build their own software, but tools that automate and standardize the chargeback process are essential for businesses of any size. Bank of America oﬀers software for managing chargebacks and has solution partnerships with outside providers, helping to automate processes and allowing merchants to take action and directly submit dispute documents.
Many large corporations already use automated response tools matched with customer details, and this kind of automation based on intelligent actioning is where the industry is headed. Ben Satterwhite comments, “Automation is key for any business in keeping their costs low when working their chargebacks. We’re seeing some interesting developments out there where rules engines do most of the heavy lifting, and operations eﬃciencies are found through a combination of artiﬁcial intelligence and robotics, which further reduces overall costs.”
Wherever the industry goes next, the best way to protect your business is to consider chargebacks at every stage of the customer journey — from preventing misconceptions when you make a sale, through to comprehensive record keeping and challenging the cases you think you can win.