Chargeback representment is the process for merchants to dispute a chargeback. By gathering evidence and other information merchants can demonstrate that the transaction was completed properly.
Whether caused by true fraud (identity theft or stolen payment cards) or friendly fraud (“buyers remorse” or disputing a legitimate charge), if you aren’t actively preventing chargebacks, your chargebacks will cost you. Get too many chargebacks and you could lose your processing privileges altogether.
Chargeback Representment can be a complex process if your in-house team is not aware of the banks’ requirements when disputing a chargeback. Every chargeback notification received from a bank will include a specific reason code that states why the customer has filed a chargeback. The representment team has to understand this code and know what documents need to be submitted in response to it. Otherwise, the acquiring bank will reject your representment and find in favor of the customer and/or the issuing bank may continue the dispute.
You will want to monitor your in-house team and make certain that they are effective. You will need to use the right tools to track all chargebacks, their reason codes, filing deadlines, and your win/loss percentages.
If you discover that your in-house team is not winning at least 50% of all cases, then you are losing a good amount of money. It may be time to outsource your chargeback work to an experienced representment company. Working with an experienced chargeback representment company will have many benefits:
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Digitize all your chargeback disputes, eliminating paperwork
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Have an expert team track all your chargebacks
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Get online access to manage all your chargebacks
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Identify the reasons for chargebacks and why they are affecting your bottom line
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Analyze your chargeback percentages across all your merchant accounts
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Work with an experienced team to dispute your chargebacks on time
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Win at least 60% or more of your chargeback disputes
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Recover your lost revenue and track it online