Table of Contents
- What Is a Chargeback Report?
- Why Track Chargebacks?
- Why use a Chargeback Management Service?
- Frequently Asked Questions
Every business has to deal with chargebacks. However, with the proper tracking and reporting tools, every business can find ways to decrease the number of chargebacks they receive and win more of their chargeback disputes.
What Is a Chargeback Report?
A chargeback report is a way to condense a large amount of data about a business's chargebacks and disputes into a format that can be more easily interpreted and acted upon.
Ideally, a chargeback report should contain all of the available data on chargebacks incurred by a merchant. This includes:
- Chargeback ratio
- Representment win rate
- Status of active disputes
- Chargeback alerts
- And more
Chargeback reports can help you see where you might be running into problems with your chargeback management process, identifying potential areas of improvement.
Why Track Chargebacks?
Tracking your chargebacks is the first step toward reducing your chargeback rate. While reducing chargebacks can save money for any business, it can be incredibly important for businesses that receive a lot of chargebacks. If your chargeback ratio increases, your merchant account provider will most likely increase your deposit. If it exceeds certain thresholds, you could face issues with payment processors, or even lose your merchant account entirely.
Additionally, a high chargeback rate often means a lot of unsatisfied customers, which hurts your business's reputation.
In today's flooded marketplace, word-of-mouth is increasingly important for attracting new customers, so you may be doing yourself a disservice if you're not tracking chargebacks to identify areas where you may be leaving your customers unsatisfied.
Tracking chargebacks can help you answer the following questions:
- Is the quality of your product or service causing chargebacks?
- Is your fraud protection insufficient?
- Is your shipping service not meeting expectations?
- Are you properly displaying the cost of your product or service?
- Are your policies, terms, and conditions unclear?
- Are your chargeback management tools performing well?
By tracking your chargebacks, you can determine who is performing their jobs well and who is not.
Analyzing the chargeback report and identifying weaknesses can help you plug any holes in your processes.
Tracking chargebacks can also help 
prevent fraud. For instance, if your company suffers from a security loophole that's gone unnoticed, online thieves could exploit it by placing fraudulent orders using stolen credit card numbers.
A chargeback report can help you identify which chargebacks are the result of true fraud, shining a spotlight on the problem.
Why Use a Chargeback Management Service?
A chargeback management service will typically provide you with an online reporting tool that you can log into at any time and check the real-time status of your chargeback rates, disputes, representment, etc.
Typically these tools allow you to sort and graph any available data to make interpretation easy. Of course, a chargeback management service can also bring the expertise of its analysts to bear when it comes to preventing and fighting chargebacks, helping you find areas of improvement that you might not spot on your own, while chargeback reports keep you up-to-date on exactly what your chargeback management is doing for you.
FAQ
How do you manage chargebacks?
Thanks for following the Chargeback Gurus blog. Feel free to submit topic suggestions, questions or requests for advice to: win@chargebackgurus.com
