Too often chargebacks are considered the cost of doing business.
Merchants believe that if they want to accept card payments from their customers, they simply have to be prepared to suck it up and shake off their losses when a claim is made.
Of course, some will try to dispute chargeback claims on their own, but the recovery statistics are dismal at best…
According to a recent report by eCommerce solutions company Radial, only one in four chargebacks is recovered.
How come so few merchants come out on top in a chargeback dispute?
In our experience, it comes down to three key reasons:
First and foremost, the system is designed to safeguard consumers, not merchants.
The whole reason chargebacks were created was to protect cardholders from unauthorized payments—which means it’s up to the merchant to provide proof that the purchase was valid.
Second, most merchants (especially smaller businesses) have neither the time nor the resources at their disposal to jump through all the hoops required to dispute a chargeback, so most of the time they don’t even bother trying.
Third, all too often merchants simply don’t understand how the process works.
Truth be told, it can months of back and forth communication to determine whether or not a chargeback is valid—and a big part of the process involves the merchant providing enough evidence on their behalf.
Any of these sound familiar?
We thought they might. Now consider this little tidbit, also from the Radial report:
63% of chargebacks can be attributed to fraud.
Add to that another 14% for customers claiming non-receipt of goods and services (which, call us skeptical, can likely be chalked up to delivery fraud) and you’ll see why we think things need to change.
If you’re tired of losing thousands of dollars every year to chargebacks, we want to hear from you.
The merchant security experts at MyWatchmen will conduct a thorough analysis of your merchant account and help you implement a time-proven process to successfully fight chargebacks and collect what’s rightfully yours.
And when chargebacks do come up, we negotiate on your behalf to help you reclaim lost profits.
In just 15 minutes we’ll show you how to increase your company’s revenue—starting with a better way to combat chargebacks.