Chargeback Mitigation Can Reduce Risk and Increase Revenue
Chargeback mitigation is the process of preventing chargebacks and challenging illegitimate transactions.
Whether you are taking mobile payments or accepting online payments, chargebacks are a fact of life. When a customer disputes a charge with their bank (or issues a chargeback) they are reimbursed almost immediately.
The burden of proof then rests on your shoulders. It is now your job to fight to get your money back by proving the transaction was valid. Chargeback mitigation includes the following actions:
Increase acceptance on valid transactions
Decrease false positives
Decrease acceptance of unauthorized transactions
Identify sources of chargebacks
Minimize merchant error
Fight illegitimate chargebacks
The outcome of a successful chargeback mitigation effort should include the following impacts:
For merchants of any size, chargebacks are expensive. They take money out of your pocket. With fines and penalties, they can disrupt cash flow. Fighting chargebacks takes time…time that you could use instead to grow your business.
The following resources provide additional details on chargeback remediation: