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Fighting the chargeback dragon is key to profitability!

Chargeback management is a key level to drive profitability of card issuers, payments processors and merchants. There is a clear need to minimize the impact of chargebacks costs and adhere to the timelines of the process. Fighting the chargeback dragon is key to profitability as we see increased disputes & regulatory focus on this space. 

The ultimate goals of a good chargeback process are to prevent chargebacks where possible, contest frauds and maintain an acceptable chargeback ratio. Given the steps in the process (representation, acknowledgement, pre-arb, arbitration etc.), multiple parties (customer, acquirer, network, merchant etc.) having an efficient process management system is needed to scale and handle growth at both sides of the play - issuance and acquisition

 Some of the key challenges in Chargeback Management Solution, include :

 • Manual & email communication throughout the Chargeback process

 • Lack of visibility on status & documentation of disputed transactions

 • Lack of audit trail of actions or history, thus lower success rate

 • Broken analytics preventing learning from previous chargebacks

 • Long TATs & SLAs leading to poor merchant & cardholder experience

 New-age Chargeback management solutions address these key tenets:

Streamline workflow & documentation management:

 o Automate case management

 o Centralized repository for evidence

 o API integration with Card Mgmt, Settlement & Communication

 Dispute resolution & representation:

 o Default note / text

 o Network specific representation

 o Automate rebuttal submission

 Reporting and analytics:

 o Chargeback tracking & reporting

 o Merchant-specific metrics & risk assessment

 o Regulatory extracts

 Acquirers and Issuers could significantly benefit from implementing a modern chargeback management to improve bottom-line, build long term value with customers and merchants, reduce chargeback losses, induce operational efficiencies and gather valuable data insights for improving their business.

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