Whether they stem from customer disputes, friendly fraud, or even criminal activity, chargebacks can pile up quickly, putting your revenue, reputation, and even your ability to process payments at risk.
Chargeback management can feel like an uphill battle. It’s a time-consuming, detail-heavy process that involves strict deadlines, extensive documentation, and constant analysis. If you’re not careful, it can eat up valuable resources and distract you from running your business.
But here’s the good news: you don’t have to tackle chargebacks alone or without a plan. SecureGlobalPay will guide you through the essentials you need to simplify and streamline the process.
Chargeback management is the process of handling and resolving payment disputes initiated by customers through their banks.
When a customer files a chargeback, it essentially reverses a transaction, pulling funds from your account and holding them until the issue is resolved. This process involves multiple steps, including gathering evidence, responding to claims, and, if necessary, disputing invalid chargebacks.
While it may sound straightforward, chargeback management is anything but simple. It’s a complex process that requires attention to detail, quick response times, and a thorough understanding of payment processing rules.
On top of that, chargebacks don’t just cost you the transaction amount. You’ll also face:
For busy merchants, staying on top of chargebacks can quickly become overwhelming without the right systems in place.
Merchants have several options to handle disputes, each with its own benefits and challenges.
Some businesses choose to build and manage their own internal chargeback teams, while others prefer leveraging specialized software or outsourcing the entire process to third-party experts.
For large organizations with enough resources and expertise, building an in-house chargeback management team can be a viable option. This approach gives you complete control over the dispute process.
To manage chargebacks effectively, you’ll need a dedicated team that includes roles such as:
Your team will also need access to tools that streamline the dispute process. This might include a chargeback management platform for tracking cases, payment processor portals for submitting evidence, and fraud detection tools to help reduce preventable chargebacks.
While this approach offers flexibility, it comes with challenges. Hiring and training staff can be time-consuming and expensive. Staying on top of ever-changing chargeback rules and deadlines requires constant attention and expertise.
For small and medium-sized businesses, dedicating resources to an internal team may not be cost-effective compared to other options.
Dedicated chargeback management software is designed to automate much of the chargeback process. It saves time and reduces the risk of human error with features like:
Most solutions should be able to integrate with your existing payment processor and fraud prevention tools, making implementation straightforward.
However, these tools aren’t a perfect fit for everyone. While they reduce manual effort, they still require oversight and expertise to ensure proper use. Additionally, pricing can vary significantly, with some solutions charging flat rates and others using performance-based pricing tied to recovered funds.
For merchants who want to remain hands-on but need help simplifying and speeding up the process, chargeback management software can offer the perfect compromise between a fully manual approach and outsourcing.
Want to take the hassle out of chargeback management entirely? Outsourcing to a third-party service can be an attractive option. These specialized companies handle the entire process on your behalf, from monitoring disputes to submitting evidence and analyzing trends.
Here’s how it works: once a chargeback is initiated, the third-party provider steps in to gather the necessary data, build a strong case, and submit it to the issuing bank. They often have dedicated teams and advanced tools to navigate the complexities of the process — while ensuring compliance with payment network rules and deadlines.
Outsourcing chargeback management to a third-party provider can save time, provide expert handling, and scale efficiently for high-volume merchants with lots of disputes. However, outsourcing comes with costs that can add up and may reduce your control and visibility over the process.
Choosing the right partner is crucial, as the quality of service can vary significantly between providers.
An effective chargeback management strategy focuses not only on resolving disputes but also on identifying and preventing the root causes of chargebacks.
The three most common causes of chargebacks are:
To build a robust strategy, merchants should:
By taking a proactive approach, you can minimize disputes and ensure smoother operations. Remember, chargeback management isn’t just about winning disputes — it’s about creating a seamless experience that prevents them in the first place!
If your chargeback rate is over 1%, your business likely falls into the high-risk merchant category.
SecureGlobalPay offers everything you need to start accepting and processing payments, offline or online. We work with both retail and high-risk merchants. As such, with SecureGlobalPay, you get access to:
By partnering with SecureGlobalPay, you get access to technology and dedicated support that will protect your business, streamline chargeback processing, and keep disputes to a minimum.
Learn more by reaching out to partners@secureglobalpay.net or fill out our online application form: