Chargeback Management Software in 2025

For many merchants, especially those in e-commerce, chargebacks are a problem that keeps getting bigger and harder to manage with each passing day. With deliberate fraud in card-not-present environments and customer abuse of the chargeback process on the rise, chargebacks pose a growing threat to any business that accepts online payments.

Merchants can't afford to sit back and let chargebacks eat away at their revenue. Fortunately, there are ways to fight back. There are two methods merchant can employ to lessen the harm done by chargebacks: preventing them and fighting them.

It can take a lot of knowledge and resources to bring down a rising chargeback rate. Dealing with them effectively takes a combination of expertise, strategy, and technological tools. Is chargeback management software an effective solution to this ever-present problem?

1. How Does Chargeback Management Work?
2. What is Chargeback Management Software?
3. Balancing Technology and Human Insight in Chargeback Management
4. What is the Most Efficient Way to Fight Chargebacks?
5. Conclusion

How Does Chargeback Management Work?

For merchants who don't have the time to make themselves chargeback experts or the money to hire a full-time team, an increasingly common solution is to partner with a chargeback management company. These companies can handle all aspects of chargeback management using their in-house experts and custom-developed technology, all while providing the merchant with tools that give them insight into the disputes they’re receiving.

The right firm will provide a positive ROI and give merchants the tools and knowledge they need to make meaningful reductions to their chargeback rate.

Balancing Technology and Human Insight in Chargeback Management

The most dependable chargeback strategies rely on a thoughtful combination of technology and human analysis. While software has become increasingly sophisticated, its value grows significantly when paired with experienced oversight.

Technology offers the advantage of speed and consistency. AI-powered tools can scan dispute data, flag irregularities, and organize documentation in ways that support faster response times. These systems are especially useful for identifying repetitive patterns, managing dispute timelines, and consolidating data from various sources for easier review.

At the same time, chargebacks often involve scenarios that don’t follow predictable rules. Interpreting reason codes, understanding issuer behavior, or deciding how best to respond to a specific claim often requires professional judgment. While automation can handle structured tasks, nuanced decisions about whether and how to respond still benefit from human review.

For instance, determining which evidence is most persuasive—or how to frame it in a rebuttal—depends on more than just logic; it also depends on understanding issuer expectations and context.

When both sides work together, software handles the volume, while people handle the variability. This combination improves accuracy, speeds up processing, and makes it easier to adjust strategies as fraud tactics and card network rules shift. In chargeback management, the balance between technology and human input is what keeps strategies adaptable, consistent, and results-driven.

A professional chargeback management company will have expertise in preventing and fighting chargebacks well beyond that of any in-house team. They will also have access to the latest tools for both managing chargebacks and preventing fraud. While this expertise and experience doesn't come cheap, the right chargeback management company will give you ways to evaluate the ROI you're getting from their services in order to demonstrate their value.

At the end of the day, the best way to manage chargebacks is the one that produces the best results for your company. Weigh the pros and cons for each option, and find out the top reasons why businesses decide to hire a chargeback management company in our e-guide, 10 Reasons to Hire a Chargeback Management Company.