Are You Wasting Money on Dispute Mitigation Fees? 

As chargebacks start streaming in, Merchants have many tools and services at their disposal. Sometimes Merchants are required by their Processor to use a chargeback service, and sometimes Merchants may choose a service that better aligns with their needs and goals. These tools can lead to holes where revenue is seeping out. 

Chargebacks and fraud are expensive. All those tools and services that Merchants’ use to mitigate disputes can have holes where revenue is seeping out. 

Ways dispute tools can hit a Merchant’s bottom-line:

• Duplicate Coverage — Often, Merchants can utilize a handful of different dispute tools, from chargeback services and representment generators to fraud prevention and analytics products. In that stack, there can be overlap in coverage that goes overlooked, and unfortunately, paid for in fees

• Ineffective Coverage — Dispute mitigation isn’t always clear cut. You might be winning chargebacks, you might be declining fraudulent purchases, and you might be staying within compliance. But tools won’t always unpack the root causes for all of these issues. Instead of actively fixing problems and decreasing chargebacks, your money and time is going to be spent on reacting to growing disputes

• Double Refunds – Sometimes a refunded disputes is still charged back. And in that case, you might refund the chargeback again, or fight a chargeback on a false dispute. And every representment costs money

• Misapplied Dispute Mitigation – When disputes are handled behind closed doors, without complete data transparency, you might be getting fleeced. Blindly trusting a third-party can lead to missed opportunity or poorly optimized representment strategy

February 16, 2024