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Writer's pictureRiddhi Agrahari

Fighting the chargeback dragon is key to profitability!



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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