How PayUbiz helps you handle customer chargebacks effectively
Chargeback is a mechanism using which the customer can get back his money in the event of any dispute. Chargeback can be initiated on Debit & Credit card transactions upon request of the cardholder, for any reason for card transaction through his/her issuing bank. The reasons to initiate a chargeback request can range from the fraudulent use of a card to dissatisfaction with the good or service received.
Way back when, the chargeback system was created by Visa/MasterCard/Amex/RuPay to protect customers from errant merchants, it ensures the merchant practices remain honest and accountable towards it customers, as it was felt that the merchants can easily defrauds the customers, or may not any recourse to aftersales complaint of customer. To provide customers a sense of security, chargeback management system has been rolled out.
How does chargeback impact your business?
Large e-commerce merchants lost 1.39% of their revenues to chargeback fraud in 2015, compared to 0.6% of their revenues in 2012 as per Paymentsource.com. Fraudulent chargebacks are those where the customer has raised the chargeback even after availing the service or product receipt, primarily to defraud the merchants.
No other phrase instills fear and anger into the hearts of merchants like the word, “Chargeback.”
How PayUbiz helps manage chargebacks for the business?
From a business’s perspective, chargebacks can often be a costly hassle. The burden to prove that a customer has been rightfully charged, falls on the merchant. Merchants are not that equipped and skilled enough to defend the charges.
Defending chargebacks is a tedious process. Once a chargeback has been filed, the merchant must provide relevant documents outlined by the Payment Scheme (Visa/MasterCard/RuPay/Amex) within a definite timeframe, which will then be reviewed by the card issuing bank. Depending on the submitted documentation the card issuing bank will determine the validity of the customer claim and resolves the dispute in favor of either the merchant or customer. Hence it’s critical to analyze the documents before submitting to the bank. A weak documentation will result in the customer get the benefit and loss for the merchant.
PayUbiz empanels dedicated & experienced chargeback analysts who have handled chargebacks in various industries like Airlines, Food Delivery, Online wallet, E-commerce, Govt. organizations etc. They help you in framing your chargeback responses and guide you every way to defend the case and ensure you do not end up losing the case to the customer.
For merchants who cannot hire a dedicated resource for chargeback, PayUbiz takes away all the hassle and allows them to concentrate on their core business.
What PayUbiz does to safeguard its merchant from invalid chargebacks from customer?
PayUbiz’s dedicated team of experienced chargeback analysts reviews your case and help you build the case through their experience and skill ensuring the case shall be resolved in your favor. In cases where merchant have to defend charges on their own, consumers mostly win and the merchant loses both the product sold and the revenue from that sale.
It’s been observed that chargeback documents prepared and submitted by the professional chargeback analyst results in much higher win rate than documents prepared and submitted by the merchant directly.
How do I be informed about the chargeback for any of my transactions?
PayU provides a state of the art chargeback dashboard to its merchants. This dashboard will enable you to view and work all your chargeback cases. Apart from it this system will track all new and un-replied chargebacks for you and will send you daily reminders through emails. So you don’t miss anything.
I am clueless about chargeback? Not sure if I can safeguard myself from customer having an intent to defraud merchant. Also not sure if I can provide the required documentation.
The PayU chargeback analyst will help you at the time of onboarding on this. We arrange a training for you & your team. We will also like to understand the business and accordingly advise you on the required documentations in case of chargeback, so you can be prepared in the event of an actual chargeback being raised.
How can I track the status of my chargeback cases, once I submit the information to PayUbiz?
PayU provides a state of the art chargeback automation system which is linked with your merchant panel. It will provide you a comprehensive view of all your past and present chargeback along with the near real time status of each one of them.
This dashboard also enable you to record your responses for the chargeback, and upload all your supporting documents here through a user friendly UI.
Although a pain, chargebacks are an essential part of any modern-day business that accepts credit/debit cards. PayUbiz with its knowledge and expertise in payments space is the perfect partner for merchants who want to stay safe from losses due to invalid chargebacks.