The Best Defense Against Chargebacks Is A Good Offense

Disputes between merchants and customers happen every day, but whether they are initiated because of a poor product or improperly performed service, they not only reflect poorly on the merchant, they can also affect their bottom line and day-to-day or month-to-month operations.

Are merchants actually contributing to the problem through faulty advertising and contract terms? And is there an easier way that merchants can recover lost funds?

Monica Eaton-Cardone, founder of Chargebacks911 believes this is the case, and spoke to PYMNTS.com about her company’s innovative new solution to this age-old issue.

PYMNTS.com: Give us a quick overview of what Chargebacks911 does and how you operate in the payments space. What are you trying to improve within the industry?

Monica Eaton-Cardone: Chargebacks911 provides solutions to charge disputes. We not only help recoup the loss of funds as a result of increasing chargebacks, but also help merchants curb future chargebacks so that they can retain their processing abilities. Chargebacks 911 services merchants, consumers and the majority of banking institutions.

How did you get the idea to start Chargebacks911? Was the idea based on feedback you heard from merchants, personal experience, etc.?

I spent many years as a merchant struggling to find a solution to chargeback issues. There was no solution so I created this company as a result of my personal experiences.

I’m interested in the Top Five merchant practices Chargebacks911 lists – No. 3 is “automated rebate offers,” so dive into why your company actually believes that’s a bad idea.

Some companies exercise a rebate offer to provide incentive, avoid giving refunds or reward customer loyalty. Anytime something is advertised as “automated,” but requires the customer to complete a form, wait a long period of time or receive a company check, you will likely end up with more chargebacks because customers are impatient and leery of anything that doesn’t offer instant gratification.

Same question, but for No. 4, which is “no refund policies.” How does this lead to more chargebacks?

A “No Refund Policy” drives more customers to their bank for resolution when they’re unhappy with a product or service. Even if you fight and win each dispute, you didn’t do yourself any favors because the real harm with chargebacks is the negative statistic you cannot reverse. The best policy is to avoid them altogether.

As eCommerce and mCommerce become more popular, how do you see the chargeback industry changing? Or will these changes not impact chargebacks?

I expect to see chargeback rates increasing unless there is balance in the industry. Consumers have the upper hand and many merchants are losing out as a result. But what consumers don’t realize is that they are in a losing situation, as well – merchants have to offset chargeback fees somehow and the answer is higher rates and product prices for consumers.

So now that we know more about the industry, what’s the number one way you feel is best to fight chargebacks? How does Chargebacks911 help merchants eliminate this problem?

Merchants must be proactive in limiting chargebacks in order to keep their businesses thriving. They have to reject the popular stance of “ignoring” chargebacks. The only way to reduce chargeback cases is to maintain a position of offense and tackle them head-on.