Chargeback management. It’s a problem, but all business owners that accept credit cards have to deal with it. However, there’s an easy way to handle chargeback management, and there’s the hard way.
The TLDR version looks like this:
- Easy way: automation, software, technology, chargeback management service provider
- Hard way: manual labor, outdated processes, call centers, fighting technology, set in old ways of handling chargeback management
What Does This All Mean?
When talking about chargeback management, you have to understand that every business gets chargebacks at some point. Some receive very few, some receive tons! But the overarching point is that all business owners that accept credit cards, mostly online, have to deal with this sort of thing. Chargeback time limits are also a concern, as the card brands don’t want this to be a long, drawn out process.
Check out this article by our friends over at Disputes Lab on what is a chargeback, or what are disputed charges, for more of a definition. This article will cover how to manage those chargebacks, and what your first steps should be once you get one.
First of all – don’t panic! if you’ve never had one before, that’s a good thing. If you’ve had them before, and have handled them yourself … you’re going to want to keep reading! The first thing you should realize when dealing with chargeback management is that you probably didn’t do anything wrong, and there’s a perfectly good reason as to why this is happening. This could be:
- Fraud
- Friendly-fraud
- Product not delivered/received
- Damaged product
- Duplicate charges
And those are just a few of the reasons why chargebacks can be initiated! The preferred way to manage chargebacks is to use a solution provider that automates the entire process – from alert, to fighting the chargeback, to representment, and resolution.
We won’t cover that whole process right now, but just now that it’s very complicated, can get very messy, and truly isn’t something that merchants should have to manually handle on a daily basis.
Quick Note On Chargeback Management
There is so much more to talk about when it comes to chargeback management, and it’s basically impossible to cover it in a single blog post. Check back here often for more on chargebacks and the best way to handle them. One thing we can tell you is that companies like Midigator do this very thing, and can alleviate a lot of the stress that comes from chargeback management.
It’s a core offering of their product and can do wonders for your online business.
We’ll see you again when we dive into the world of Chargebacks and the IOT. Exciting stuff!
