Never take chargebacks at face value. Statistics show that over 80% of chargeback requests turn out to be fraudulent, so do not hesitate to contest sketchy disputes.Â
Review chargeback disputes as soon as possible so that you can inform your processor right away if you want to contest them. Next, coordinate with your bank or processors. They will likely ask for evidence like invoices and transaction receipts. Afterward, the issuing and acquiring banks will conduct the investigation — lasting around 90 to 100+ days.
Follow these straightforward, actionable tips to increase your chances of winning against chargeback disputes:
While issuing and acquiring banks allow merchants to dispute chargebacks, you would do well to avoid them altogether. Disputing chargebacks is tedious and time-consuming. Business owners even share that most investigations last three to four months.
You can use modern tools to reduce the risk of chargebacks. Modern systems like the Address Verification Service, 3D-Secure 2.0, and Prevention Alerts do an excellent job keeping fraudulent chargebacks at bay.
Do merchant service providers turn you down for having too many chargebacks? Processing Card has you covered! Check our in-depth comparison review of the best high-risk payment processors for more information.
Wilbur Graham has been writing about mobile payments and POS systems since 2012. He got his degree in Marketing at California State University.
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