If you ask this question, you know very well that your dispute volume is enormous, and they become expensive and dangerous to the business. Simply put, a dangerous chargeback ratio percentage of chargebacks counts from the total transaction ratio.
You’re in a risk zone if your dispute rate is 1%. If 1,8%, you’re in the dangerous. If a merchant is reaching a 1,8% threshold, transactions can be stopped by a payment provider, and a chargeback monitoring program starts.
Ways to reduce chargeback rate:
- temporary stop all transactions. It’s the best solution for chargeback prevention, worth for business and ultima ration of the payment system.
- fight chargebacks. Represent as much as you can. Provide evidence for disputes and wait for a miracle. It’s a good solution if your chargeback rate is low and the average check is cheap.
- build dispute strategy. Standard dispute strategy includes an ongoing chargeback process, win-lost reasons analysis, changing pieces of evidence, chargeback reason analysis, and chargeback possibility reduction.
Of course, building your company’s dispute strategy is a continuous process. For this, you need specific knowledge and tools. If with knowledge everything is clear – only time and experience are needed for this.
Choosing the right tool for dispute management so not so easy. Specially designed tool better than excel, one tool better huge numbers. But typical office software is not good with complex chargeback flow.
The proper evidence provision is hard work if you don’t know what exactly you need for dispute rebuttal and easy if you know where you can receive your answers.
Our advice – start with a simple dispute flow analysis. It will save money in the future. Then, use chargeback management software to reduce the time spent.
If you want to build your company’s dispute strategy to reduce your risks and start saving money – ask for a free consultation here.