You have done everything you can to prevent fraudsters from purchasing from your online store, but one day it hits you – a chargeback. Funds are immediately withdrawn from your account, and you haven’t even had a chance to defend your business.
Chargebacks will occur for many reasons, a few of the more common ones being:
- The customer is claiming that they received something other than what they ordered
- The customer is claiming that the merchandise never arrived
- The cardholder is claiming that they have no knowledge of this transaction or it was a “card not present” transaction
In any case:
- Investigate immediately. Allowing time to pass may cause you to miss the dispute deadline, or allow a fraudulent order to leave your company.
- Find out who initiated the chargeback and what order the chargeback corresponds with. Often times, little information is provided and you will not even have a name to reference. The information that will be available is the date of the transaction and transaction amount.
- Note – It is very important to keep organized records of all transactions that can be easily accessed.
- Once you have found the corresponding order, you will want to see if this order has shipped. If it has not, place the order on hold immediately until the chargeback can be resolved. The last thing you want is for your merchandise to go out the door while the cardholder’s payment has been taken from you. If this is a dispute where the cardholder is claiming that they have no knowledge of the transaction, you will need to cancel this order and allow the chargeback to go through as it is being declared as fraudulent by the owner of the credit card. Unfortunately, if this order has shipped and it is a “card not present” situation, there is not much you can do about retrieving the funds.
- If this is not a “card not present” chargeback, but one of the other common disputes due to customer dissatisfaction, your best option is to reach out to the customer and request that they drop the dispute so that you may sort out the issue through your normal processes. Resolving a dispute with the card issuing bank directly can take a lot of time, research, not to mention a lot of paperwork. This process can go on for months at a time.
- If the customer is unwilling or unable to resolve the chargeback with your company directly, you must begin building your case for a dispute. Collect any evidence you have pertaining to the order:
- Transaction Receipts
- Order Confirmations
- Proof of delivery
- Email correspondence with the customer
- Screenshots of your policies that relate to the customer’s dispute
- Make sure that your case number is written clearly at the top of each document
- The larger the paper trail, the better your odds are of having the chargeback reversed.
- Send all of the information you have to the contact listed on the chargeback by the deadline. Your case may be reviewed after the deadline, but there are no guarantees.
- Lastly, follow up to make sure that your documentation was received and that no additional information is needed from you.
As mentioned earlier, from this point on any type of resolution can take months to occur. Once the card issuing bank has made a decision concerning your case, you will receive a notification stating that either the chargeback has been reversed in your favor, or the chargeback has not been reversed. Fortunately if you have a valid reason to dispute a chargeback and you provide a thorough case, the majority of the time you will be reimbursed for any withdrawn funds.
Chargebacks will never be completely preventable and they may always be time consuming and frustrating to combat once one (or many) appear. Let iGlobal Stores take on all of the risk and responsibility that comes along with selling internationally so that you can reap the benefits of your eCommerce business and skip the headache.