Chargebacks can become a hassle for merchants who end up eating the cost of their merchandise when a customer successfully disputes the charges on their credit or debit cards. However, there are ways merchants can fight and win by getting chargeback fraud protection for merchants. These programs are designed to protect merchants from losing profits on merchandise sold by people who literally steal from the company. This happens when they keep the products and falsify information and dispute the charges and win their case. Chargebacks work primarily in the consumer’s favor and are good when done honestly but can hurt the company when fraud is involved.
Chargeback Disputes Through Confusion
It is essential to understand some chargebacks are legit. Others are honest mistakes through confusion, and the select few are in situations where fraud is involved. Almost everything people use today has an app on their phones to cover them in desperate times. Some apps are available to lessen the confusion of chargebacks as it gives the exact information, such as the merchant, time, place, and amount spent at a merchant’s store.
More times than people care to admit, they make mistakes and forget charges they placed on their cards. This usually happens when there is nothing to show for purchase, such as fuel, food, and other one-time enjoyment items.
Digitally, receipts are kept within the apps and remind the user of their charges. This process is safe for the user from getting caught up in fraudulent charges which are legit and those which would have them accused of fraud by falsely disputing specific claims. It is also a safeguard for the merchant, who can also use the apps available to show the charges are legit. Only if there is no record on the apps for purchases can disputes arise for either party.
The Dispute Process
Both the consumer and the merchant have rights when chargeback disputes arise. Those merchants who receive chargebacks that look funny or fraudulent may wonder how to dispute credit card chargebacks. When a merchant gets the notice, they may panic or get upset because the frame of mind could turn to the old saying, “The customer is always right.” However, all the merchant has to do is prove a mistake was made, or deliberate fraudulent activity is taking place. There are some steps that the merchant can do to fight back in their defense which are:
- Gather all the information at the time of the sale from the consumer;
- Understand the deadlines to dispute and file before the deadlines;
- Once the merchant receives the notice, gather all records to prove their case;
- Submit all evidence before the deadline;
- All responses from the merchant must be in writing in their own words to dispute the chargeback;
- The last thing is to wait for the verdict. If the chargeback fails, the merchant will get their money. If the chargeback is approved, the consumer will get back their money. Nothing more can get done until the decision is made.