Chargeback Management

What you need to know about Chargeback Management Software in 2021

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Table of Contents

  1. How does chargeback management work?
  2. What is chargeback management software?
  3. Is chargeback management software right for me?
  4. Is chargeback management software effective?
  5. What are the different approaches to chargeback software?
  6. What are the three types of chargeback software?
  7. What is the most efficient way to fight chargebacks?
  8. What is a chargeback tool?
  9. How do you track a chargeback?

For many merchants, especially those in eCommerce, 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 parts to addressing the chargeback problem: preventing chargebacks and fighting them.

Chargebacks are a unique problem, and they require unique solutions. Dealing with them effectively takes a combination of expertise, strategy, and tools — and one of the most important tools in the fight against chargebacks is chargeback management software.

How does chargeback management work?

Chargeback management is the process of recovering revenue lost to chargebacks while analyzing your chargeback data to prevent future chargebacks from occurring. Companies that manage chargebacks effectively have more secure transactions, higher customer retention rates, and improved overall satisfaction rates.

What is chargeback management software?

Chargeback management software is a tool merchants or their partners can use to help prevent and fight chargebacks by managing internal records, analyzing chargeback data, and integrating with external tools like chargeback alerts. This software can be run by merchants directly or by chargeback professionals.

Is chargeback management software right for me?

Chargeback management software can provide automatic responses to incoming chargebacks based on your preferences. Tracking and reporting functions can provide you with actionable information about how to win chargeback disputes and make operational improvements that will reduce chargebacks in the future.

The caveat is that chargebacks are too dynamic and diverse to be handled entirely by a piece of software.

Chargeback management software is only as effective as the person operating it and acting on the information it provides.

For merchants who don't have the time to make themselves chargeback experts, an increasingly common solution is to hire a chargeback management company to deal with the problem for them. These companies can handle all aspects of chargeback management while providing the merchant with tools that give them insight into the chargebacks they receive and the ROI of hiring professionals.

Is chargeback management software effective?

Chargeback management software can help you apply your skills to a greater number of chargebacks without getting things mixed up, but at the end of the day, it's still human expertise that's at the core of chargeback management.

What are the different approaches to chargeback software?

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Chargeback management software generally focuses on one of three areas: stopping true fraud disputes, stopping chargeback fraud disputes, or responding to disputes. Some software integrates external tools in order to handle more than one of these areas.

What are the three types of chargeback software?

Chargeback management software comes in three basic types: SaaS platforms that merchants can license for self-management, managed software used by third-party chargeback management experts, and hybrid solutions that combine aspects of both for flexibility.

What is the most efficient way to fight chargebacks?

For merchants that receive very few chargebacks, learning how to manage them in-house is often the most cost-effective solution. For those who deal with chargebacks more often, it's often correct to outsource chargeback management to professionals.

New call-to-actionA 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, a good 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 eGuide, 4 Reasons to Hire a Chargeback Management Company.

FAQ

What is a chargeback tool?

A chargeback tool is another term for chargeback management software, which can help merchants prevent and fight chargebacks by handling alerts, analytics, and record keeping.

How do you track a chargeback?

An individual chargeback can be tracked simply by making a note whenever you initiate or are notified of a new stage in the process. Multiple chargebacks can be tracked more effectively using chargeback management software.


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Get the guide, Chargebacks 101: Understanding Chargebacks & Their Root Causes