Whether you have just ventured into your first startup or you are an existing one, you often come across several problems as a business owner. One of the most common and frustrating problems is to fight a chargeback. But, you don’t need to be worried about this – even if you get hit with a chargeback, all is not lost. If you have proper knowledge of how to dispute a chargeback step by step, then you will find that it’s a piece of cake to take necessary action against it.
What do you mean by a Chargeback?
The Chargeback happens when customers contact the merchant service provider to ask for a reversal of the charge. It is a transaction reversal served to protect the customers from deceitful activity perpetrated by both individuals and merchants. Basically, this is a result of concern over the security of credit card fraud and theft.
Nowadays, it has become more than a simple way to secure customers from theft and fraud. But, some people have gained this knowledge of how to use this for their benefits and commit theft and fraud against innocent customers.
What Happens When it is Filed?
Usually, you might receive a chargeback notice from the issuer bank and thus stand in front of the charge. During these discussions, the customers may provide several types of excuses. But, there are some common factors. One of these is they didn’t place the order and the second one is they didn’t receive the required commodities.
Keeping the cardholders happy is the principal goal of the bank. Usually, they will accept the explanation of the cardholder while running the conversations, but finally, they cancel the payment. It can be changed if the consumers keep the track records of their purchases, but they start with the benefit of the doubt and they manage it for quite a while.
When a chargeback is filed, a merchant can be required to show the detailed proof to support that they accomplish the order to the customer as specified. The documents that are required to verify the sales and delivery are:
Shipping receipt and tracking number
Transaction or sales receipt
Positive AVS response
Matching shipping and billing addresses
Conversation records with the customers
Essential Procedures to Fight A Chargeback
There are several things you can perform in order to avoid loss of revenue as well as to get rid of other problems. Here, we are going to discuss some of them. So, you can have a look at the vital points described below:
Check your Merchant Statement
First of all, you need to go through the merchant statement carefully. Here, you will get all the info that is required to recognize the outflows and inflows of your bank account. Moreover, you also can check the processing and sales fees. It will help you distinguish the total cost.
Get the Reason Code
Bank informs merchants to adjust all of these by using the reason code. Each of these codes needs a different type of security. For example, you can’t fight without the authorization of the cardholders. In the same way, you will fail to get commodities. Regrettably, these are not regulated across all payments networks. Changes occur frequently in the payments networks. So, another best way to keep up to date depends on the reason codes of each payment network you use.
Draft Response Letters
Once you receive the chargeback notice, you can prepare a response letter. Maintain all the transactions properly in the letter. You also need to point the payment network with the necessary evidence for disputing it. Furthermore, you can also provide the agreements or terms and conditions with the letter that can help you to bolster your case.
File a Dispute by Following Correct Management Guidelines
Credit card companies tend to follow the correct procedure for successful disputes. There is a separate system for every big credit card agency. If a merchant doesn’t follow the correct procedure, then it can be canceled on the technical grounds, without getting to the merits of the case. To avoid these, you can maintain the handling guidelines of Visa and MasterCards at your hand as a reference.
Dispute Fraud Within the Statute of Limitations
After identifying an adjustment that you think is a fraud, you can dispute it. Arguments must need to be registered within a certain time to be valid. For example, the dispute time limit for a MasterCard is 7-10 days and for a Visa card, the time limit is 30 days.
Have you received a chargeback? Don’t worry; just apply the aforementioned tricks to get rid of this problem. We hope after knowing what to look for, what is needed to fight, and how to file your case, you will be able to avoid lost revenue and win a chargeback as a seller with ease. In case you need additional support fell free to get in touch with us at International Payment Solutions for the best results.