What Is A Process Of Chargeback Representment Cycle

Chargeback representment cycle is a process by which merchants are able to dispute chargeback by showing evidence that transaction was authentic. Based on the evidence provided, card brand reverses the chargeback and refund merchant. In case if the chargeback isn’t represented successfully, then the merchant can go to arbitration, which can result in additional fees.

Every year merchants lose billions of dollars in online frauds. Chargeback is the reason for 43% of them, for a merchant even single dollar starts to add up. Many leave their money on the table instead of recovering it quickly. You are a merchant and want to fight for your right? You should understand how card brand process works.

Role of Card brand in chargebacks

• Customer contacts the brand and explain what happened
• Card brand do research, if it is unreasonable then customer is responsible for payment, and merchant is safe
• If there is a reasonable claim, card brand makes temporary payment to the customerCustomer Issuer Merchant
• Documentation regarding the chargeback is sent to the processor
• If a merchant wants to revert it then claim should be submitted by the due date of the notification.
• If the merchant doesn’t provide enough evidence then there won’t be return.

Why Chargebacks need to be represented?

30% merchants represent all chargebacks, while 60% represent fraud coded only. It is extremely important to keep pros and cons in consideration because some chargebacks can hurt the business. Handling the matter effectively is essential, losing may cost transaction amount, operation costs, as well as actual merchandise. Why chargebacks should be represented? Why business needs to be proactive?

• Chargebacks are not only loss of sale, they come along with fees without warning. Business will lose revenue, additional costs may hurt.
• If there are numerous chargebacks then the merchant may lose the trust from a processor. Many banks assume that merchant is guilty, chargeback representment will assure that your business doesn’t get blacklisted.
• Because you have proof that merchandise was received
• Billing address and shipping address were same, and merchant was received as per post service

When Card Brand Rule out Decision against Merchants?

• If return and cancellation police were clear on the website, emails, recipes, and on areas where you thought it was important to highlight. This can help you win the dispute and card brand will be forced to rule out.
• Customer may claim that goods were not received, but if you use signature delivery such as postal service, FedEx, or other then the brand will rule out. It is not foolproof, but it can help you to some extent.
• You can provide detailed information to the bank, including documentation, to resolve a dispute.
• If customer says that merchandise wasn’t delivered but merchant has the proof
• Cardholder claims that merchandise was defective when it was fine.
• Questioning the quality of a product when a merchant has mentioned it in an online store.
• Cardholder claims that transaction wasn’t authorized.