Hi there, it’s Janice. I started this newsletter to provide a straightforward, guided approach to understanding and managing the complex dispute process. That includes disputes from the issuing bank, acquiring bank and merchant's perspectives. Subscribe and never miss an issue. Questions you’d like to see me answer?
What does compelling evidence mean?
This is the essential information a merchant must provide to support the re-presentment process and demonstrate that a transaction was valid. The card networks require specific evidence to successfully challenge a chargeback and prove that the customer's claim is unwarranted. Consider this your "receipt folder" – a collection of documents and data points that show you delivered the goods or services as agreed upon, and the customer's dispute is without merit. By presenting this compelling evidence, you can fight chargebacks effectively and protect your hard-earned revenue.
Type of Evidence by Chargeback Reason (Basics)
Fraud: If a customer claims they didn't make a purchase, you'll need to provide proof that they did, such as IP address, device fingerprint, or proof that the payment was processed with proper authorization.
Goods Not Received: Proof of delivery, like tracking information or proof of pickup.
Not as Described/Defective/Damaged: Quality photos or videos of the product, along with detailed descriptions, can help prove that the item matched what was advertised.
Cancellation: Provide a copy of your cancellation policy.
These examples cover the basics of what is considered compelling evidence for each chargeback reason according to card networks.
An extensive breakdown for each chargeback reason will be covered in separate articles which will help in crafting the most effective representment that will result in the reversal of disputes and recovery of revenue.
Ensuring Evidence is on Hand
Do:
Keep detailed records of all transactions, including:
Order details (product, quantity, price, etc.)
Payment information (method, date, amount, authorization)
Customer communication (emails, chat logs, phone records)
Use a reliable shipping service that provides tracking and delivery confirmation for physical goods.
Take photos of the delivered package whenever possible to prove successful delivery.
Provide clear, accurate product descriptions and high-quality photos showcasing important details and features.
Ensure product descriptions match the actual item and don't exaggerate or mislead.
Require customers to agree to your terms of service prior to completing their purchase.
Make your terms of service easily accessible and clearly visible during the checkout process.
Ensure your terms of service thoroughly cover dispute-related topics, such as:
Refund and cancellation policies
Shipping and delivery timeframes
Product warranties or guarantees
Conditions for returns or exchanges
Dispute resolution process and customer's responsibilities
Respond promptly to customer inquiries and complaints.
Address concerns quickly and professionally to prevent disputes from escalating.
Offer solutions or compromises when appropriate to maintain customer satisfaction.
Don't:
Skimp on shipping or delivery confirmation to save costs.
Investing in reliable tracking and confirmation is crucial for proving delivery and avoiding "item not received" chargebacks.
Use generic, vague, or misleading product descriptions.
Inaccurate or incomplete descriptions can lead to "item not as described" chargebacks and damage your reputation.
Hide your policies in fine print or make them difficult to find.
Transparency builds trust and ensures customers are aware of their rights and responsibilities.
Ignore customer inquiries, complaints, or red flags.
Proactively addressing concerns can prevent disputes from escalating to chargebacks.
Fail to train your staff on chargeback prevention and management best practices.
Ensure your team fully understands the chargeback lifecycle, its requirements and card network regulations.
Ensure your team understands the importance of documentation, communication, and following policies.
By following these guidelines, you'll be better prepared to fight chargebacks and protect your hard-earned revenue. The key is to be proactive, thorough, and transparent in your business practices. This not only helps you defend against chargebacks but also builds trust with your customers and enhances your reputation.
Need Help?
If you need help in managing your chargebacks, or simply need advice:
I offer a range of services to help businesses effectively manage payment disputes and protect their revenue:
Chargeback Management: Comprehensive strategies to minimize the impact of chargebacks, including prevention techniques, representment, pre-arbitration and arbitration guidance, and dispute resolution best practices.
Risk Assessment: Thorough assessments of your current payment processing practices, identifying vulnerabilities and providing actionable recommendations.
Data-Driven Insights: My recommendations are based on thorough analysis of your business data, industry trends, and best practices, enabling confident decision-making.
Training and Education: Customized training programs to empower your team with the knowledge and skills to handle payment disputes effectively, as an issuer, acquirer, payment processor or merchant.
Strategic Consulting: Tailored strategies that align with your unique business goals, ensuring long-term success in the face of evolving chargeback challenges.