Professionals & In-House Teams

Chargebacks are an ongoing challenge for merchants across all industries. In response to this challenge, many merchants grapple with the decision of whether to rely on in-house chargeback teams or enlist the services of professional chargeback management companies.

While these options may seem mutually exclusive, merchants need not choose one over the other. Instead, they can embrace a collaborative approach that combines the expertise of both in-house teams and chargeback management companies to create the best possible chargeback management program.

Professional chargeback management companies and in-house teams can work together harmoniously to tackle the complex issue of chargebacks. Through this collaboration, merchants can optimize their resources and enhance their ability to combat fraud, reduce chargebacks, and ultimately improve their bottom line.

What an In-House Chargeback Management Team Provides

In this kind of collaborative relationship, each company brings certain advantages and areas of expertise to the table. Let’s go over some of the benefits an in-house team provides:

In-Depth Knowledge of the Business: In-house teams possess a deep understanding of the company's products, services, and operations. This knowledge is invaluable when investigating chargebacks because it allows them to assess transactions within the context of the business.

Internal Relationships: In-house teams can have an easier time communicating with other departments and advocating for changes on operations or processes that would reduce chargebacks.

Familiarity with Internal Systems: An in-house team will already be familiar with the internal systems and tools used by a business, such as CRM software, payment gateways, etc.

Goals and KPIs: While the best chargeback management companies will strive to align with the goals and KPIs of each client they serve, there's little doubt that an in-house team will have a more comprehensive understanding of these objectives.

Having an in-house chargeback management team allows businesses to manage their chargebacks with a higher degree of customization and control.

However, in-house teams may not always have the specialized expertise and resources needed to combat fraud and chargebacks with maximum efficacy, which is where the collaboration with professional chargeback management companies becomes valuable.

What a Professional Chargeback Management Company Can Provide

While having an in-house chargeback management team offers several advantages, there are distinct benefits to partnering with a professional chargeback management company. These specialized firms are equipped to enhance a merchant's chargeback management efforts in the following ways:

Expertise and Specialization: Chargeback management companies are dedicated to this specific area, employing experts with in-depth knowledge of the ever-evolving landscape of fraud and chargeback regulations. They’re typically able to achieve higher win rates than in-house teams, increasing revenue recovery.

Advanced Tools and Technology: Professional chargeback management firms typically invest in cutting-edge technology and analytical tools to collect and analyze chargeback data. These resources can provide merchants with a significant advantage in identifying vulnerabilities and preventing chargebacks.

Scalability: Chargeback management companies can quickly adapt to fluctuations in chargeback volumes. This scalability ensures that businesses can receive support during peak periods without the need to hire additional in-house staff.

Resource Efficiency: By outsourcing chargeback management to professionals, businesses can redirect their in-house teams’ focus to core operations, cross-department education and training, or revenue-generating activities.

Compliance with Regulations: These firms are well-versed in industry regulations and compliance requirements. They can help businesses navigate the complex landscape of chargeback rules and ensure that they remain in good standing with card networks.

Cost Savings: While chargeback management companies charge fees for their services, these costs are often more than offset by the savings achieved through reduced chargeback losses and more efficient operations.

Industry Relationships: A chargeback management company may be able to leverage existing relationships with card networks and issuers to address problems and obtain insights that a merchant wouldn’t be able to.

By collaborating with a professional chargeback management company, merchants can tap into a wealth of industry-specific knowledge, resources, and experience that may not be available within their in-house teams.

This partnership can bolster a company's chargeback management program, helping to mitigate fraud and minimize chargeback-related losses, ultimately resulting in a more profitable and secure business environment.

How Chargeback Management Companies and In-House Teams Can Collaborate

Collaboration between a professional chargeback management company and an in-house team can harness the unique advantages of each, creating a more effective and efficient chargeback management program. Here's how they can work together:

Resource Allocation

A chargeback management company can either take on the task of assembling complete dispute packages, freeing up internal team members to channel their expertise into other critical areas of the business, or they can handle chargebacks that the in-house team lacks the bandwidth to manage. This is especially beneficial during seasonal influxes of chargebacks when internal teams may be stretched thin.

Enhanced Expertise

In-house teams have an innate understanding of the company's operations, products, and customers. By collaborating, they can leverage this specialized knowledge in tandem with the chargeback management company's broader industry expertise. This creates a potent combination of in-house insights and external experience for more effective chargeback handling.

Regular Reviews and Improvements

Continuous performance assessments, fueled by the combined knowledge of both teams, allow for regular reviews and improvements in the chargeback management program. This ensures that strategies remain effective and adapt to evolving fraud and chargeback challenges.

Data Synergy

Chargeback management companies have access to a much larger amount of chargeback data. This extensive data set allows them to draw insights about specific issuers and particular types of chargebacks that an in-house team might not have the capacity to uncover. By sharing this valuable data, both parties can refine their strategies for prevention and dispute resolution.

Let’s delve into that last point a little deeper, as it’s an important one.

Leveraging Data Insights to Reduce Risk and Grow Revenue

One of the most compelling benefits of partnering with a professional chargeback management company is the ability to harness the power of data analytics for broader business improvements.

These insights, driven by advanced data analytics technology, provide actionable information that extends far beyond chargeback management.

Internal teams play a pivotal role in translating this information into meaningful action, reducing risk, enhancing customer satisfaction, and fostering revenue growth. Here are a few examples of this kind of collaboration:

Product Performance Analysis

Data analytics might reveal that a particular product is frequently not meeting customer expectations, resulting in chargebacks. An internal team could investigate whether there's an issue with the product itself that needs to be addressed, or if it's a matter of marketing setting unrealistic expectations

Shipping and Fulfillment Insights

For e-commerce businesses, analysis might reveal a consistent trend of customers claiming their goods didn't arrive. Internal teams could work closely with the fulfillment department to determine whether there's a genuine issue with shipping logistics or if additional delivery confirmation methods are needed to combat false claims.

Problem Locations

When a business has multiple locations, a chargeback management company might discover that a particular location is receiving a disproportionate number of chargebacks.

The in-house team could work on training staff at that location on best practices for chargeback prevention, such as EMV chip compliance, authorization and processing, or policy communication.

Repeat Offenders

A Chargeback management company can use data analytics tools to help a business identify repeat offenders—customers who repeatedly make purchases and then file chargebacks. Once identified, an in-house team can determine the best approach for dealing with these customers, such as blocking future transactions, setting purchase limits, etc.

Fraud Detection and Prevention

Chargeback management companies are well-equipped to distinguish between chargebacks caused by legitimate fraud and those driven by false claims. By sharing this data with internal teams or third-party providers of fraud tools, they can work together to improve fraud detection and prevention.

Taking the Next Step

The collaboration between professional chargeback management companies and in-house teams represents a powerful synergy. In-house teams offer a deep understanding of the company's operations, product offerings, and customer base, while chargeback management companies provide specialized knowledge, advanced data analytics technology, and scalability.

By working together, internal teams and chargeback management companies create a dynamic and adaptable chargeback management strategy that aligns with the company's goals and customer-centric values.

To learn more about enhancing your chargeback management strategy, visit Chargeback Gurus during the Money 20/20 Conference in Las Vegas. You can stop by Booth #6051 to chat with one of our experts, or book a meeting in advance. We hope to see you there!