Today’s businesses must take electronic payments to remain competitive. However, there is always the fear of the dreaded chargeback. These disputes are time-consuming and can drain the company’s resources. Anyone that takes credit card payments needs to have someone in-house that can handle the conflicts. They are troublesome for all merchants, but the small business owner can struggle with disgruntled customers or being part of a fraudulent scam.
Many businesses don’t even bother to fight these chargebacks because they feel they cannot win. Many myths surround this type of fraud, and it’s possible to persevere against electronic disputes. Here are some of the most common myths about chargebacks.
Myth #1: A Company Cannot Win A Chargeback Dispute
Some call chargebacks cyber-shoplifting, and up to 80 percent of these disputes are based on fraud. However, it’s possible to win at least half of all these disputes. Reclaiming lost dollars takes knowledge and perseverance. Working with the credit card company by filling out all the paperwork and responding to deadlines dramatically improves the odds.
Myth #2: The Monthly Charge Back Ratio Will Decrease With Each Win
The chargeback ratio is figured whether a company wins or loses the dispute. Though a winning means that the business gets to maintain the cash, it won’t reduce their overall risk rating. Once a dispute is filed, it goes into the overall company average.
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