Disputing Chargebacks: A Guide for eCommerce Merchants
A chargeback occurs when a cardholder reports to their credit card issuer that a transaction was unauthorized or otherwise unsatisfactory, and requests a refund. When the refund is approved, the charge is forwarded to the merchant who is legally obligated to reimburse it. However, if a merchant can provide compelling evidence that the order was authorized and received by the genuine cardholder, a chargeback can be disputed.
Because any customer can file a chargeback, and issuing banks are more inclined to take the customer’s side in a dispute, one of the main challenges merchants face is providing evidence to prove chargeback abuse. Issuing banks must be absolutely certain of abuse, so submitting partial evidence like screenshots of transactions from dashboards, or parcel tracking information indicating that the order reached its intended destination, generally won’t suffice. Introduction
There’s no doubt that the high burden of proof renders the chargeback dispute process both resource intensive and expensive. However, when streamlined and embedded in the business flow, the process can help businesses retrieve revenue they’d assumed was lost.
Riskified has extensive experience detecting CNP fraud and preventing the associated chargebacks. Our expertise extends beyond protecting eCommerce retailers from unauthorized credit card usage, to include identifying individuals taking advantage of the chargeback process. We also provide a representment service to assist our customers dispute chargebacks and ensure fees are kept to a minimum.