Optimize Chargeback Delivery and Disputing Mechanisms

Chargebacks are a common problem for many businesses and they can be caused by a number of reasons. But mostly they occur due to credit card fraud while when you purchase online the card is not physically involved and there is a possibility of the data to be stolen and used by fraudsters. First, you need to use fraud protection tools and techniques which will allow you to increase the level of protection. And second, you need to develop a mechanism which will help you to handle chargebacks effectively if they happen.

That’s why you as a merchant or a PSP need to partner with a processor which will provide you with flexible and convenient chargeback delivery and chargeback disputing mechanisms. There are several approaches to these mechanisms which can be offered.

Chargeback delivery used to be performed by mail/fax or e-mail. But these solutions do not suit modern businesses due to the higher amount of transactions processed and chargebacks, consequently. Some processors optimize this mechanism and generate a file associated with a chargeback which can be exported by a merchant/PSP or they use APIs which can send a notification about a chargeback automatically.

There are several approaches to chargeback disputing mechanism as well. Fax is the most commonly used way to send information about original transaction. It can also be done by e-mail. Disputing portals and APIs belong to the new and advanced methods used by merchants to cope with this task.

This is a brief explanation of chargeback handling mechanisms; additional information is available at #UniPayGateway (read the publication). And those who want to find out what the other reasons of chargeback occurrence are and how to reduce their amount can visit the blog called Paylosophy.