How to Dispute a Chargeback

Chargebacks present a real challenge to modern businesses. As the frequency of online transactions increases and the number of companies engaging exclusively in e-commerce grows to unprecedented levels, the number of chargebacks follows suit. Today's companies need to know the proper way to dispute a chargeback if they hope to remain viable in tough economic times.

Instructions

1. Know your chargeback rights, as well as the procedures, for settling such disputes. Take the time to research the issue thoroughly, and consult your attorney if you have any questions about the legal ramifications of chargebacks. The chargeback procedure is well-defined, and knowing and understanding it can help you use it to your advantage.

2. Keep accurate records of all transactions, and make certain you can find them quickly and efficiently whenever they're needed. You'll need them to build your case during a chargeback dispute.

3. Handle valid payment disputes promptly, and issue refunds or charge reversals quickly. While this won't eliminate chargebacks altogether, it will help lower the number of customers who feel they must resort to them.

4. Respond to chargebacks as quickly as possible, being careful to adhere to all deadlines required by law for such disputes.

5. Answer all points made by the customer in the chargeback demand. Your dispute of the chargeback will more likely be successful if you can present a valid response to all parts of the customer's complaint.

6. Present proof, whenever possible, that the cardholder was in fact the individual who made the purchase. Such proof might consist of correspondence sent to you by the cardholder in which he or she discussed purchasing the item in question. Other suitable proof might be a copy of the cardholder's signature on a credit card receipt or evidence that the card was used electronically and received authorization approving its use for the purchase.

7. Consider upgrading your business equipment and record keeping methods to a system that keeps all crucial data in a central location. CRM tools can help you keep accurate track of customer activity and other related account details. Data from servers and customer databases can also be integrated, providing an accurate picture of software downloads, online activity and product purchase or shipping information. One great way to upgrade your overall ability to dispute chargebacks is to outsource the handling of this critical aspect of your business to a company that specializes in this area, effectively placing your chargeback dispute needs into the hands of the experts.