The amount of customers who buy goods online has increased significantly. The development of e-commerce has led to the growth of online fraud. Fraudsters are constantly creating methods and techniques which would allow them to steal credit card data. And it is one of the reasons why chargebacks occur. Businesses use different fraud protection techniques in order to decrease their amount. But what do you need to do to handle chargebacks effectively?
Merchants and PSPs need to be aware of two important aspects of chargeback handling: chargeback delivery (merchant/PSP receives the information on chargebacks), and chargeback disputing (merchant/PSP disputes the chargebacks and provides all the required information to support his/her point of view). Consequently, you need to find a processor which will offer you the most convenient delivery and disputing mechanisms from the available options.
When online payments were not so popular the information on chargebacks was sent by mail or by fax. Later letters and faxes were replaced by e-mails. These solutions are no longer used and there are the attempts to optimize this process. There are processors which generate the data file associated with a chargeback and let merchants export it from the system. Other processors use APIs which can automatically send a notification to a merchant about chargeback occurrence.
Merchants can also use different methods to send the information about the transaction. Fax is still the most widely used option. This information can also be send via e-mail. Sometimes merchants can send the text file with the main information about the charge which is supported by the documentation send via e-mail or fax. Processors tried to optimize this process as well that’s why they suggest special disputing portals and APIs.
You can learn more about the challenges of chargeback handling mechanism from the new publication at UniPay Gateway . Additional information on the concept of a chargeback is available at Paylosophy Payment Advice Portal.