Chargeback management is a key level to drive profitability of card issuers, payments processors and merchants. There is a clear need to minimize the impact of chargebacks costs and adhere to the timelines of the process. Fighting the chargeback dragon is key to profitability as we see increased disputes & regulatory focus on this space.
The ultimate goals of a good chargeback process are to prevent chargebacks where possible, contest frauds and maintain an acceptable chargeback ratio. Given the steps in the process (representation, acknowledgement, pre-arb, arbitration etc.), multiple parties (customer, acquirer, network, merchant etc.) having an efficient process management system is needed to scale and handle growth at both sides of the play - issuance and acquisition
Some of the key challenges in Chargeback Management Solution, include :
• Manual & email communication throughout the Chargeback process
• Lack of visibility on status & documentation of disputed transactions
• Lack of audit trail of actions or history, thus lower success rate
• Broken analytics preventing learning from previous chargebacks
• Long TATs & SLAs leading to poor merchant & cardholder experience
New-age Chargeback management solutions address these key tenets:
Streamline workflow & documentation management:
o Automate case management
o Centralized repository for evidence
o API integration with Card Mgmt, Settlement & Communication
Dispute resolution & representation:
o Default note / text
o Network specific representation
o Automate rebuttal submission
Reporting and analytics:
o Chargeback tracking & reporting
o Merchant-specific metrics & risk assessment
o Regulatory extracts
Acquirers and Issuers could significantly benefit from implementing a modern chargeback management to improve bottom-line, build long term value with customers and merchants, reduce chargeback losses, induce operational efficiencies and gather valuable data insights for improving their business.
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