We’ve always felt merchant payment processing consisted more than just offering merchant accounts to online businesses. More has happened in the payments industry in the last five years than the last 50 (yes, we stole that line), thus Instabill employees value educating our prospective merchants and partners as well as our current ones. It’s why we prefer one-on-one conversations and why we pen industry-related blogs three times each week – we want our merchants and partners kept abreast on industry news and trends.
Because several of the industries for which we offer merchant payment processing are known for high chargeback rates (tech support, nutraceuticals, subscription-related services), we’re frequently adding articles about the best practices and procedures to mitigate chargebacks.
We’ve got one keyword for merchants who wish to win their chargeback disputes:
Data.
How the chargeback landscape is (drastically) changing merchant payment processing
Just a few weeks ago, we wrote a series of articles detailing the new Visa Claims Resolution, Visa’s new two-channeled litigation system to resolve chargeback disputes. While the majority of disputes – Visa estimates 80 percent – will be settled by the ‘allocation’ process (where blame is assigned) the remainder of disputes will be settled in the ‘collaboration’ process (where all parties will enter all relevant information for a resolution decided by the credit card issuer).
MasterCard is said to be updating its chargeback resolution process, to be released later this year.
It’s too early to tell how well Visa’s system will work. With the allocation process, Visa is hopeful that 14 percent of disputes will be eliminated through automation as it determines – through data – if the dispute is valid enough to advance to the arbitration stages. Data is also the cornerstone of the collaboration process – each party enters relevant data and documentation to find a resolution.
Examples of persuasive data to refute a chargeback
Obviously, data in resolving chargeback disputes is going to play a pivotal role. Below are examples of compelling data merchants can use to refute chargebacks.
- A series of questions: Right off the bat, a merchant may be able to settle a chargeback dispute – especially a case of friendly fraud – if he can confirm any of the below questions:
- Did the customer use a CVV code at purchase?
- Was 3D secure used in the purchase?
- Were any other purchases made by the same customer, at the same time?
- Screenshots: If it cannot be printed, a screenshot is a merchant’s best option. On a PC, a screenshot is taken by pressing Control and Print Screen on the far right of the keyboard, then pasting the shot in a document, preferably Photoshop or Paint. On a Mac, screenshots are done by pressing Shift, Command, 4, then outlining the relevant portion of the screen. Many merchants who fight back against chargebacks and friendly fraud peruse the social media profiles of the customer in question – many consumers love to display their wares on social media – and take screenshots to establish compelling evidence.
- Shipping information: A signature of receipt, that the customer actually received shipped goods, is solid evidence when the customer claims the purchased goods never arrived.
Another tip: Build a track record
We have a colleague who owns apartments and condominiums in a major city. When tenants changeover, there are often small and medium-sized repairs and renovations to be done, thus paid for by the departing tenant’s security deposit. He has often been challenged in small claims court over these matters, but has never lost. He is diligent about collecting evidence – photos and e-mail conversations mainly. More important, our colleague has built a history of winning disputes.
Merchants should follow a similar mindset. Winning chargeback disputes is a game of inches. Having a strong history of winning disputes establishes invaluable credibility with the card brands.
Why we care about winning chargebacks
We chose the high risk merchant payment processing industry: High risk, high reward.
Our aim is to help e-commerce merchants expand their online presence, to get them processing credit card transactions and keep them processing. We also assist our merchants in mitigating risk. Not only is Instabill is partnered with domestic and international acquiring banks for the best merchant payment processing solutions, but also with a leading chargeback management firm.
We’re always happy to discuss the best options for high risk merchant account solutions at 1-800-530-2444.
