Total Chargeback Protection with Representments

Blog Image - Chargeback representments

Total Chargeback Protection with Representments

As a best practice, merchants take every precaution and rely on tools to prevent chargebacks from happening. But when you’re dealing with hundreds or thousands of customers, processing thousands to millions of dollars in revenue, even the best of merchants get chargebacks. 

Main sources of chargebacks - via CB911

Source: Chargebacks911

Managing chargebacks is an important part of business profitability. The negative impacts on your business caused from chargebacks are: 

  • Chargeback fees assessed by the acquiring bank – ~$100 per chargeback
  • Operational costs of erroneous disputes
  • Negative contributing costs to increased processing fees

What are the recommended next steps when you have to deal with a chargeback?

Chargeback Representments

Leveraging a full-service, managed chargeback representments partner like Chargebacks911 integrated into LimeLight, can help with disputing your chargebacks by organizing all the important data and information required to explain to card issuers or banks the charge was done in good faith, and as requested by the card holder (or authorized user).

If you’re successful in demonstrating the validity of this charge, the card issuer or bank will reverse the chargeback and you won’t lose any money. 

This is why we recommend to all LimeLight customers to have both chargeback alerts (Chargeback VMPI) and representments.

How do Chargeback Representments work?

A big part of managing chargebacks is both the prevention and course of action to take to alleviate any further damage a chargeback can cause your business if filed. First things first, you have to make a decision—should you dispute it?

When a customer files a chargeback, you alway have both options: simply accept the chargeback or follow up with a dispute. When you choose to dispute, you’re entering into the process of chargeback representment (also known as Chargeback Reversal). 

Chargeback representment is your opportunity to provide the relevant documentation and data to demonstrate the charge’s legitimacy, moreover that you collected that customers payment in good faith. This process shouldn’t be done lightly, and handled with care and precision. 

At LimeLight we recommend for clients to monitor all chargebacks, and when you need to dispute leverage the experts in the industry like Chargebacks911. That is why we selected Chargebacks911 to be our preferred partner, and integrate with their tools and technology. For every chargeback you decide to accept, you’re also losing revenue and the cost associated to the goods/services you’ve already provided the customer.

Fighting Chargebacks, Fraud and Recovering Revenue

Chargebacks911 are experts in recovering lost revenue caused by chargebacks. With the highest win-rate in the industry, recovering up to 60% of chargebacks through representments.

Source: Chargebacks911

The beginning of a chargeback can be initiated by either the cardholder or the bank. When it’s the bank flagging a transaction, it’s typically because of a processing error. Generally speaking the acquirer will manage the representment process without you even knowing. As long as the bank can get the required information and can submit it on your behalf. 

Other kinds of chargebacks are more likely to be passed to you (the merchant), and it’s your job to make a case and recover this lost revenue. Note: You have  a limited amount of time (7 days) to respond.

What information do you need?

Winning a chargeback dispute via representment is dependant on each case, and is largely dependent on the relevant supporting documentation and data. Knowing the chargeback reason code is helpful to prepare the right documentation for each case. Here are some documents you will need to strengthen your Representments case:

  • Copy of the original purchase receipt 
  • Uncovering if the purchase was made by an authorized card user vs. card holder
  • Proof of purchase with customer signature on file, if items received in-person 
  • Shipping tracking numbers and confirmation of delivery and who signed (if physical goods)
  • Relevant customer communications i.e., email or support inquiry related to the purchase
  • Social media screenshots can often prove receipt when clients post pictures of disputed purchases 

It’s important as a merchant in today’s online sales environment to understand how chargebacks and revenue recovery are organized. You’ll have very little chance of winning a dispute if you don’t understand the ins and outs. 

Having the right data is important, that’s why LimeLight provides and assists merchants with PCI level 1 compliant ecommerce platform to store, and recall customer information and purchases. 

If you ask any merchant “what could be worse than a chargeback from a customer,” they will likely respond as “getting another one.” This is why LimeLight works closely with Chargebacks911 to offer both end-to-end accountability and on-demand services. 

Knowing the rules and regulations to manage the chargeback representment process is important, and equally valuable is knowing the people behind these cases, evaluations and determinations. CB911 is known for providing the industry’s most comprehensive reporting and detailed diagnostics, they get to know the banks and the people who work there. Chargeback representments as a process is mostly organized, managed, and reviewed by real people.  

Chargebacks911’s representment experts customize the response to each dispute, taking them through an 8-point process, which helps merchants improve their reputation with issuing banks.

That’s why Chargebacks911 has strategies available to your Client Success Manager to help you with the daunting work associated with preventing fraud and managing Chargebacks Representments. 

Your LimeLight Client Success Manager will know exactly how successful your chargeback representment efforts could be with the help of Chargebacks911. Our team will look at the costs and revenue opportunities to understand how you can protect your business reputation, prevent Chargebacks and most importantly, increase your bottom line. 

To get started or if you have questions about representments, speak to your designated Client Success Manager or contact our support team.