Chargeback Management

Checkout Champ helps ecommerce stores reduce chargebacks and prevent credit card fraud. To do this, we use custom-developed screening tools and chargeback management integrations.

Chargebacks are a huge risk for ecom store owners. Lost revenue is bad enough, but dealing with chargebacks is also a life-or-death risk for the business if a key merchant account gets shut down.

Too many chargebacks will get a Stripe or PayPal account frozen, disrupting sales, and requiring a lot of admin time to follow up and contest the decision.

Losing access to Tier 1 merchant services forces store owners to use higher-risk merchant account providers with more expensive services that eat into margin. Some high-risk merchant accounts also have withdrawal delays that affect cashflow.

What is a Chargeback?

A chargeback is a transaction that the cardholder disputes. The card’s issuing bank may request further information from the seller’s merchant account provider.

Then the issuing bank sends a demand for a refund, which comes out from the seller’s merchant account, as well as any penalty fee. But the loss of money is not the biggest problem with chargebacks - it’s the loss of time that is really damaging.

Although fraud activity and unethical business practices are both sources of chargebacks, they only account for a small percentage.

The #1 reason for chargebacks is simply that the cardholder does not recognize the item on their credit or debit card statement. In many cases it’s something they bought or a subscription they signed up to but forgot about.

Despite this, business owners will often just give up and refund the money even if the chargeback was in error or because of fraud - because contesting them takes a long time and eats up human-hours that could be better spent on growth tasks.

Chargebacks are very expensive for ecommerce store owners - In addition to the transaction's lost income, firms must additionally pay a chargeback fee (typically $30 to $40). And receiving more chargebacks results in higher merchant account fees and increased processing costs for the store owner.

Too many chargebacks may result in credit card processors banning retailers. Even where a reputable online store is a victim of fraudulent sales and criminal activity, they can quickly lose access to merchant processing and have their sales go to zero overnight.

How to Prevent Chargebacks Online?

Here are the 3 biggest ‘needle-movers’ you can put in place to prevent chargebacks from happening:

Use A Secure Checkout Process And Technology

Your website must have an SSL certificate and all of your pages must be securely encrypted. Keep your customer’s payment information safe and secure.

Implement Simplified Customer Support

Make it easy for your customers to reach you. Include email and telephone contact information on every page of your website and make it easy for customers to find. Set a quality standard of responding to customer inquiries in no more than 24 hours, or even less if you have the resources. The faster you reach out, the quicker problems get solved BEFORE the customer makes the decision to chargeback.

Invest In Fraud Detection

Checkout Champ’s Fraud Manager pre-identifies and prevents fraudulent transactions from happening. Together with our chargeback management integrations to help you manage cardholder disputes quickly and efficiently, getting ahead of chargebacks removes a huge risk factor from your business, and lets you see the difference in your bottom line too.

What to Do If You Receive a Chargeback?

When you get a chargeback, contact your customer right away and see how you can make things right with them. Many times, chargebacks can be resolved simply by communicating - but if this doesn’t resolve the issue, you can file a dispute with the issuing credit/debit card company.

If you are able to successfully dispute the chargeback, you will be refunded the amount of the transaction.

If you are not able to dispute the chargeback, you will lose the revenue from the transaction.

Checkout Champ's chargeback management integrations can help you effectively manage chargebacks and credit card fraud.

Why Checkout Champ Is The Best Chargeback Solution

Checkout Champ CRM chargeback management software connects to leading chargeback solution providers for real time dispute updates, helping ecomm store owners manage and prevent credit card fraud.

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