The Fleetworks chargeback defence document has been developed and refined over many years. In this article we will discuss some of our ideas and thoughts about chargebacks and filing a chargeback defence.
Always defend them
Your merchant is essentially granting you a credit line equal to all of your transactions. You need to ensure that the risk level you present to them is as low as possible. Failing to defend a chargeback will send the wrong message about both your professionalism, and your credit worthiness. You should always defend your chargebacks.
When you file your defence it should be unemotional and fact based - you might think the client is a little tinker but do not say that. Always, write in a professional manner, using simple language (avoiding colloquialisms and three letter abbreviations) to ensure the message is not confused. Try to consider the person at your merchant interpreting your defence and aim to make their job easy.
Always provide evidence...but not too much
Read the reason codes and tailor your wording to counter the claim being made by the client. If the client is claiming they knew nothing about the transaction but you have an email exchange with the client then simply present that to support your charge. Only provide evidence that supports your claim directly. Try to avoid sending too much evidence because the person processing the chargeback at the merchant will not thank you.
Prevention is better than cure...review your processes
Use the reason codes to review your business processes. Are you exposing yourself to risk that you can remove or reduce by changing your business process? Even if you are winning the disputes you could protect yourself from the work to defend them and the reduced customer satisfaction. For ideas on how to adjust your processes, have a look at disputes you are winning.
Possible chargeback indicators?
The best chargeback defence program will be one that avoids getting chargebacks. An early warning system that a chargeback might be likely to occur would be very useful. Maybe consider looking at customer service scores, surveys or online reviews and consider tracking back to see if there is a pattern for chargebacks that get raised. If you can learn to spot potential chargebacks situations before they happen then you can act to prevent the chargeback being filed.