4 Best Ways to Handle Chargebacks

No business owner ever wants to hear this dreaded word, but inevitably, any business accepting credit cards in exchange for goods or services is likely to experience a customer initiated chargeback. Customers can initiate chargebacks for a variety of reasons, it’s possible they were never delivered the item they purchased, were unsatisfied or are attempting fraud. Unfortunately, regardless of the chargeback’s validity the merchant has no choice but to follow due process.

Here are four tips on how to handle chargebacks:

Respond Promptly

Credibility is a key factor in disputing chargebacks. Once it has been initiated and a merchant has been notified, the rate of response is indicative as to how seriously the merchant takes the claim. Disputing a chargeback can be a long, tedious road – it’s important to get as much information regarding the terms of the dispute in your initial phone call.

Look for Opportunities for Prevention

Once you have discovered the terms of the dispute, doing an internal audit in attempt to prevent from a repeat scenario is crucial. Connecting with your merchant service provider to brainstorm about what could be added to your current payment process can be helpful. Something as simple as updating a business name on a processing account or adding CVV verification to online purchases can prevent future issues.


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Provide as Much Documentation as Possible

In order to do this  successfully a business must already have a decent system in place for tracking receipts, reports and purchase details. While disputing a chargeback, the more detailed documentation you have supporting your claim, the higher the likelihood the final decision will be in your favor.

Keep Calling

Many times, the chargeback process gets held up or delayed due to a lack of follow up. Regardless of where you are at in the process, it’s up to the business to take the lead on follow up and ensure the rep handling their case has everything they need to make final decision.

Businesses found at fault in multiple chargeback cases can experience future difficulties with processing accounts and the ability to accept credit card payments. It is always in the best interest of the business to do their best to prevent chargebacks long before they happen.

For more information and tips on handling chargebacks contact us at NTC Texas today!