Compelling Evidence for Retail Chargebacks

In the world of retail, chargebacks can be especially damaging. They represent not only a loss of revenue, but often additional losses in the form of products, fulfillment costs, and more. Fortunately, merchants can recover a portion of their lost revenue by fighting illegitimate chargebacks, but doing so successfully can be tricky. That’s why we’re taking a closer look at chargeback evidence in the retail space. What types of evidence should merchants collect, and which are most likely to be successful?

Retail Chargeback Evidence

In the process of chargeback representment, having the right evidence is the key to success. What the right evidence is will vary from one case to another depending on the chargeback reason code and the circumstances of the transaction. But first, let’s discuss the various forms of evidence a retailer might use in representment.

• Transaction Receipt: An itemized receipt showing the reason for the charges, the time of purchase, and other details. For card-present transactions, a signed receipt can be extremely compelling.
• Records of Prior Transactions: If the customer made other purchases that were not disputed, these can be used to counter claims of fraud, especially if there are matching transaction details.
• IP Address: An IP address may be matched with previous purchases or used to establish the customer’s location.
• Geolocation Data: Merchants can use geolocation data to demonstrate that the transaction originated from a location consistent with the cardholder’s information.
• Device Fingerprint: Device fingerprinting can support an assertion that a transaction was not fraudulent, as it was made using the same device previously used by the customer.
• CVV Verification: Proof that the customer's CVV was verified during the transaction adds an extra layer of security, reinforcing the legitimacy of the purchase.
• Terms and Conditions: For some types of chargebacks, the terms agreed to by the customer can be used to prove that the merchant fulfilled their end of the bargain.
• Customer Acknowledgment of Terms: Obtaining explicit acknowledgment from the customer that they have read and understood the terms and conditions strengthens the merchant's position.
• Proof of Authorization: This may include signed agreements, electronic consent forms, or audio recordings of verbal authorizations.
• Customer Communication Records: Documentation of any communication with the customer, such as emails or chat logs.
• Product Descriptions and Specifications: Providing clear and accurate product descriptions and specifications can help demonstrate that the customer received exactly what was promised at the time of purchase.
• Tracking Information: If applicable, merchants should provide detailed tracking information that confirms the delivery status of the purchased items.
• Delivery Confirmation: Obtaining delivery confirmation receipts or signatures provides tangible evidence that the products reached the customer successfully.
• Delivery Photos: While less compelling than a signature, a photo of the delivery can also be used as evidence that the goods were provided.
• Social Media Posts or Photos: If the customer has publicly posted about the product on social media, this can be used as evidence against claims of fraud or non-delivery.

By collecting these kinds of evidence and making them easily available for use in representment, merchants can significantly improve their chances of successfully reversing chargebacks.

Presenting the Right Evidence

The battle against chargebacks is nuanced and requires a tailored strategy for presenting evidence. Selecting the right evidence is not a one-size-fits-all endeavor—in order to maximize revenue recovery, the evidence you present must be specific to each chargeback.

Tailoring Evidence to Reason Codes

The chargeback reason code is the most important factor in determining what types of evidence to present. Different reason codes signify different issues, such as fraud, product dissatisfaction, or non-receipt of goods.

Select evidence that directly addresses the specific reason cited by the customer. For instance, if the chargeback alleges non-receipt, prioritize proof of delivery and tracking information.

If you’re not sure what a particular reason code means or what evidence would be best to use, you can search our reason code database to find more information on that particular code.

Maintaining Brevity and Clarity

Streamline your evidence presentation by excluding unnecessary information. Focus on evidence directly related to the reason for the chargeback to maintain clarity and avoid overwhelming the adjudicator.

Highlight the most crucial pieces of evidence that strongly counter the chargeback claim. A concise and targeted approach increases the impact of your defense.

Catering to Issuer Preferences

In some cases, different issuers will have differing opinions on how compelling a particular type of evidence is. Unfortunately, most retailers simply won’t have the volume of chargeback data required to reliably determine these preferences. However, a company like Chargeback Gurus can aggregate data from thousands of merchants to discover the perfect strategy for each issuer.

Conclusion

In the constant battle between merchants and chargebacks, evidence is the merchant’s greatest weapon. In order to wield it effectively, merchants must adhere to best practices in evidence collection, store evidence in a way that’s both secure and accessible, and tailor the evidence presented to the case at hand.

By understanding the representment process and presenting compelling evidence, merchants can fortify their defenses, protect their financial interests, and preserve their reputation.

Remember, the battle against chargebacks is not merely about winning individual disputes, but about establishing robust practices that secure long-term business sustainability.