Tracking Chargebacks Reduces Disputes
Incurring chargebacks is a facet of conducting business. Regardless of how frequent your business incurs credit card chargebacks, you would benefit by disputing them.
Tracking your chargebacks is an important step in the process of winning your chargebacks. If the number of chargebacks is high, your merchant account provider would most likely increase your deposit which could be held up to 12 months. If your chargeback numbers are extremely high, you could lose your merchant account.
Most importantly, the reputation of your business would be in jeopardy and your company would lose revenue. For these reasons, you would be wise to track your chargebacks.
Tracking chargebacks serves various purposes. You could determine the answers to the following questions.
- When are the chargebacks happening?
- Which department is responsible for these chargebacks?
- Is your product or service causing the chargebacks?
- Is your product fulfillment process the reason?
- Is it your software/system?
- Are you properly displaying the cost of your product or service?
- Could lack of posting your company policy or terms and conditions be the cause?
- Is your chargeback processing company performing well?
Your business consists of various departments such as order taking, fulfillment and customer service. By tracking your chargebacks, you would determine who is performing their jobs well and who is not. By analyzing the chargeback report and identifying the weaknesses, you could plug the loopholes in your business.
In addition to the aforementioned reasons, preventing fraudulent orders is another reason for tracking chargebacks. For instance, if your company suffers from a security loophole in your order taking or shipping department, online thieves could exploit it by placing fraudulent orders using stolen credit card numbers. Not detecting and canceling fraudulent orders could cost your business a significant percentage of its ROI.
Typically, the data is available, but since you are busy running your business, you might not know how to detect fraudulent orders quickly and cancel them.