Customer

Customer Service

Advice

 

What To Do When Customers Force Refunds and Chargebacks

 

Customer Dissatisfaction

Dealing with Rude Customers

     

   

Chargebacks are something businesses have to contend with in their dealing with customers. Any eCommerce business cannot work without an online payment operator, and chargebacks are a necessary evil that comes with the package. But first, what are chargebacks?

Instagram reels business spectators

Chargebacks are simply the request for a refund made by the customer to the bank operator for any product or service they have availed from a business. The customer disputes the transaction made, and several reasons could be there behind it. First, it is possible that they mistakenly made the transaction or have been on the receiving end of fraud. Second, they could simply not like the product or service delivered to them and want their money back. There is also the chargeback fraud that one needs to consider as well. Now, the question is what the business should do when customers force refunds and chargebacks.

First, be aware of the chargeback reason codes

Any chargeback request comes with the reasoning behind it. The grieved party has to make the case to the payment provider and the business why they are correct in their dispute, and the matter should be settled as quickly as possible. So, it becomes crucial that the business operator is well aware of the hundreds of chargeback reason codes to properly respond to the claim.

Luckily, these codes are not difficult to understand and are generally divided into eight categories. If the business is aware of the chargeback codes, they can also prevent the refund from taking place.

 

 

 

 

   

Check Chargeback Red Flags

It really should surprise anyone that chargeback is a popular way for fraudulent actors to get some quick money without much effort. Merchants around the world have been on the receiving end of chargeback fraud cases. And while anti-scam technology has been in place for many years, they are not 100 percent secure.

What a business can do from their side is look at the red flags to determine a fraud chargeback claim.

▪ In case there is an abnormally high order value, around 10 to 20x times the prices of an average order. It is common for fraudulent actors to place a bulk order and then make a chargeback claim.

▪ If the user is deploying IP masking, it is very likely a case of chargeback fraud.

▪ Different credit card and shipping addresses are also a red flag that businesses can look out for.

▪ If the account user is newly registered with a relatively new email address, it indicates a fraudulent chargeback claim.

Compose a compelling response

Once the business has determined whether the chargeback claim is genuine or not, all left to do is to submit a response. In case of fraud chargeback attempts, simply stating so would be enough to quell any case against the business. And not only would the claim be rejected, but the fraudster would be notified to the relevant authorities for further proceedings.

Now onto what to add in response to the chargeback claim.

 

 

 

 

   

Now onto what to add in response to the chargeback claim.

For Product unacceptable chargebacks claims:

▪ In case the product is damaged during the shipping or is made of poor quality, then it would be doubtful that the dispute would be settled in the businessís favor.

▪ But in case the chargeback request has been made after the expiry of the return policy, the business must attach the same in the response.

For Products not received chargeback claims:

▪ Shipping is inarguably the biggest challenge faced by eCommerce businesses. There is not much a business can do to fight such a claim.

▪ Having a solid shipping and fulfillment policy can be helpful.

For Unrecognized chargebacks claims:

▪ Treat them as fraudulent chargeback claims and attach the bill copy with the response.
▪ Opt for an appropriate transaction describer to prevent such claims from resurfacing in the future

For Subscription billing chargebacks:

▪ These charges would often come as uncategorized.

▪ Attach the cancellation policy in response

▪ Copies of notification sent to the customer for renewal and the transaction detail of the same.

Naturally, these are just some of the most common chargeback claims and their appropriate responses. Businesses would need to attach relevant documents with each of them and create a compelling case to get the dispute settled in their favor. They also need to be mindful of the dispute response period. Otherwise, the payment provider would automatically settle the claim in the customer's favor.

 

 

 

 

 

5 Reasons Why Your Business Needs Live Answering  ▪  Customer Service Stories