How to Fight Visa Chargebacks

As one of the two biggest credit card companies in the world, Visa has a staggering amount of business clout. If the number of chargebacks on your business gets too high, they can blacklist you, which brings a lot of stress you don't need to your business. If you find yourself having to fight chargebacks from Visa, you should plan carefully and adopt a number of steps.

Instructions

Difficulty: Moderately Challenging

1. Prepare ample paperwork for your claim. This means keeping careful records of any sales, saving signed receipts from customers, tracking orders charting the path of shipped items, filing quality control documents from the warehouse and retaining any other piece of documentation that shows you conducted the sale in good faith. If you can present sufficient evidence to Visa, you can fight the chargebacks much more efficiently.
2. Act quickly. Visa responds well to businesses that present their grievances in a timely fashion (within 7 days). Most steps in the process have set time limits regardless. Don't set the issue aside to deal with later but respond to it as promptly as you can, especially during the first few chargebacks when your leverage with Visa is stronger.
3. Ask for reasons for the chargebacks. You have a right to know why your customer(s) canceled the charge and whether it was from something on your end or some other issue out of your control. Visa should provide that for you and give you a chance to respond to the issue properly.
4. Familiarize yourself with Visa's chargeback policies. The company publishes a merchant relations manual (see Resources below) that outlines its corporate position on the subject. The more you know about your rights in such a situation, the more readily you can respond.
5. Sign up for the Merchant Chargeback Monitoring Program from Visa. This analyzes the rate of chargebacks from your business and lets you know if the number exceeds an acceptable amount. It will help you anticipate any problems and prepare for a fight if need be.
6. Take steps to prevent fraudulent credit card transactions. The best way to fight chargebacks is to prevent them from happening in the first place. Demand proper documentation from your customers, don't accept credit cards that are declined or have expired, make sure all sales receipts are legible and check your books carefully to avoid overcharging customers.

Tips & Warnings

• It pays to be proactive when you fight chargebacks. Establish an open line of communication with Visa from the get-go--before any chargebacks show up on your record--and it will be easier to fight them successfully when and if chargebacks do show up.