Disputifier

Did you know that you can ’block’ up to 90% of all disputes BEFORE they turn into chargebacks? Yes, with something called Chargeback Alerts. It’s a service from Ethoca & Verifi that warns you the very moment a customer disputes a payment. How it works: 1. Customer disputes a payment. 2. You get a notification in real time. 3. You (or your service provider like Disputifier) refund the customer on autopilot This way they never turn into actual chargebacks and you save yourself a lot of headaches. Here’s a complete guide on Chargeback Alerts: https://lnkd.in/geSRqHS3

When a chargeback happens, it's important to act fast and be thorough. Here’s how to win your next chargeback: 1. Keep detailed receipts Make sure you have records that show the date, time, amount, and a clear description of what was sold. These should match the order and payment information exactly. 2. Provide proof of delivery Always use trackable shipping methods and get delivery confirmations or signatures, especially for expensive items. This shows the customer received their order. 3. Record all customer communications Save emails, chats, and phone call records to show you tried to resolve any issues and confirm the transaction was real. 4. Include extra evidence for specific cases For example, if you run a software service, include records of the customer’s usage, login times, and activity. 5. Use digital evidence Include things like IP addresses, device IDs, and location data to connect the transaction to the cardholder. That’s how you maximize your odds of winning and minimize the harm.

1% chargeback rate = 1 out of every 100 transaction turns into a chargeback. Let’s assume that you get 100 sales every day. In that scenario, you get a chargeback everyday. Now, depending on the platform you use, you must cover chargeback fees, which range from $15 to $35+ per case. We’ll be conservative and just go with $20. So that’s $600/month. $7.2K a year just in chargeback fees. Not even taking into account the costs of goods lost, ad spend, shipping, etc… The real number will be in tens (or even hundreds) of thousands of dollars a year. Something to consider before you ignore chargeback prevention.

Some merchants don’t pay enough attention to chargebacks because they think the impact isn’t that bad. Well, here’s just a small list things that chargebacks cause or impact: - Revenue Loss - Loss of COGS & Shipping Fees - $15-35 Chargeback Fee - Increased Processing Costs - Time and Resources - Customer Trust - Bank Relationships And it could go on and on if we take into account 2nd order or 3rd order consequences. Check out this article to learn what exactly happens when you lose a chargeback: https://lnkd.in/garY7qTf

Contrary to what some people think, payment processors don’t decide who wins a chargeback. It’s the cardholder’s (customer’s) bank. Here’s what the process actually looks like: 1. Dispute Initiation The customer sees a charge they don’t recognize or agree with and contacts their bank to dispute it. Sometimes, it’s fraud where the “customer” is trying to trick a business. Either way, the bank takes over from here. 2. Bank Investigation The bank checks the claim to see if it’s valid. If it seems justified, they temporarily credit the customer's account and file a chargeback. 3. Merchant Notification The merchant gets a notice about the chargeback with details, including the reason for the dispute. 4. Merchant Response The merchant can either accept the chargeback or fight it by providing proof that the transaction was legitimate. 5. Evidence Review The bank reviews the evidence. If the merchant’s proof is strong, the chargeback might be overturned. 6. Final Decision If the merchant’s proof isn’t convincing, or if they choose not to fight the chargeback, the temporary credit to the customer becomes permanent, and the merchant loses the money from the transaction.

Can you prevent chargebacks? Yes and no. Check this out: While it's impossible to eliminate chargebacks entirely, you can significantly reduce their occurrence by adopting proactive strategies. If you understand the common reasons of chargebacks, you can adjust accordingly and prevent a good amount of them. Here’s a few common reasons for chargebacks: - Unrecognized Transactions = Customers do not recognize the transaction on their statement and assume it is unauthorized. - Product Not Received = The customer did not receive the goods or services they paid for. - Product Not as Described = The received product is significantly different from what was described or expected. - Recurring Billing = Charges for subscriptions or memberships that the customer claims were canceled. Then there are fraudulent chargebacks, which is a chapter on its own. We’ll talk about those soon.