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Automated Representments Enhance Win Rates

All players in the Payments Ecosystem get crunched by chargebacks—it’s the unfortunate price of doing business. Merchants large and small get burned as revenue is siphoned from their bottom-line. And ISOs/MSPs, PayFacs and Acquirers take a revenue hit from merchant churn and potential reputational harm. 

Fraudulent chargebacks can sometimes be linked to a poor customer experience, confusing card descriptors or receiving the wrong product. This makes it important for Merchants to set up policies and transparency around product pricing, product descriptions, customer service, terms and conditions and processing protocols (read more on decreasing chargebacks). But at the end of the day, there is no way to completely eradicate the risk of a chargeback. 

For cases cases where a transaction is charged back, Merchants can submit a representment. 


Representments Fight Chargebacks

One way for Merchants to fight chargebacks is by submitting a representment through their Processor. A representment is simply an evidence-backed response that argues against the validity of a charged back transaction. Representments build a strong case using: 

  • Transaction details
  • Why the chargeback is incorrect or fraudulent
  • Proof with supporting documents, customer communication, fraud measures and relevant policies

How can I strengthen my rebuttal evidence? Read on

How Can Merchants Submit a Representment?

  1. Gather Evidence — Representments hinge on building a strong case around why a chargeback is false or fraudulent. Only collect evidence that’s relevant to the individual chargeback. Evidence can include:
    • Order Details
      • Receipts
      • Invoices
      • Shipping confirmation
      • Delivery tracking
    • Communication Records
      • Emails
      • Instant chats
      • Phone logs
      • Other transcripts from customer interactions
    • Proof of Delivery
      • Delivery confirmation
      • Signatures
      • Tracking information
    • Customer Service Records
      • Gather Notes on customer interactions. Include evidence of any concerns and complaints
    • Refund Policies
      • Documentation of refund and return policies


  2. Draft a Rebuttal Letter — This is the Merchant’s chance to present their case in a persuasive manor. Rebuttals contain information on your business, why the cardholder’s claims are false, evidence that highlights your argument and unique Merchant circumstances. Relevant details included in the rebuttal will change from Processor to Processor. Merchants might be able to use Processor provided templates, or they can manually create a templates in-house. Here are some tips for a strong rebuttal:
    • Double check your numbers and guarantee data accuracy
    • Keep the letter concise and well organized
    • Use the tools at your disposal: CVV, AVS, and 3D Secure

  3. Package up the Representment — Though every Processor has different expectations for what is needed in a representment, bundling the assets together is imperative. Bundle the rebuttal and evidence into a .TIF or .PDF file format

  4. Submit the Representment to the Processor — All chargebacks have a deadline that varies based on the Card Network and Processor. Merchants should expect a 10–20-day deadline

  5. Wait for the Issuer’s Decision — As with submitting a representment, the players upstream need time to review submissions. The deadline for an Issuing bank to respond can vary between Card Associations. Expect to wait 30-45 days for the Issuer to review and judge on the validity of the representment

Learn more about compliance thresholds.       Click here


Third-Party Representment Services vs. Representment Builders

Staying compliant is big business. Once dropped by their Processor, Merchants can find getting a new one difficult and expensive. And Processors and Payment Enablers need their Merchants to stay healthy and profitable for longer, because that’s where their own revenue comes from. 

Sometimes a Processor might require their Merchant to use a third-party chargeback service or a representment builder tool. This is particularly commonplace when Merchants start to slip out of compliance. There’s no denying it, these mitigation options make managing representments quite a bit easier than doing it by hand. But like anything, there are pros and cons.

  1. Third-party Representment services can be an easy fix for Processors, but also a costly one. Processors might also have relationships with different third-party services, allowing integration with Merchants’ payment data and a deeper insight into the Processor’s representment requirements. They can help merchants better comply with unique industry/business risks, manage chargebacks and give an ease of mind knowing that chargebacks will be fought.

    There are a few important things to take note of though. Third-party services won’t always have access to the Merchant’s unique billing, delivery or business situations, which can lead to lower chargeback win rates. Secondly, these services aren’t transparent. A technically experienced team can find insight about chargeback causes and win rates from representment data. Lastly, these services have a business model that relies on fighting as many chargebacks as possible—don’t expect them to tell you the root cause of growing issues, because decreasing chargeback volume is decreasing their revenue. And their share of revenue adds up quickly. 

  2. Representment Builders all vary a bit, but they tend to offer similar representment functions. These tools are straight forward. The Merchant fills out the representment fields, generates/writes a rebuttal based on form answers, then attaches relevant information. In terms of fighting chargebacks, Merchants can save more time with a mitigation tool than writing every rebuttal out by hand. A Merchant can also gain more transparency around what’s being argued, how it’s being argued and what evidence is being presented.

    For the Merchant, these representment tools can be a life saver. But one big issue arises—Merchants aren’t always as technically experienced with Payments. Priorities can be focused on growing a business, selling more product, providing excellent customer service, and less about building a strong case against chargebacks and drilling into the root causes. Though faster than creating a representment from scratch, Merchants might still need to spend time filling out fields and hunting down supporting evidence. And they might also not achieve optimized win rates. And there’s the cost issue, future eroding the Merchant’s revenue. 


Slyce360 Optimizes Representments

Unlike any other tool, Slyce360 gives your Payments team insight into the optimal path. You see the opportunities worth pursuing and get the prescriptive solutions and timeframes for optimized success. For opportunities, Slyce360 lets you generate representments from scratch, review and edit as needed, and submit it—all in one place.

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