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Q: Can representment economics be improved?

Representments, or the process behind responding to a chargeback in the hopes it will result in the recapture of funds that were originally lost to a chargeback, can be optimized. 

While there are numerous reasons a merchant may not fight a chargeback, invalid disputes are a liability to all parties involved: the issuing bank, the card association, and the acquiring bank – not just the merchant. 

Successful representments start with a quality rebuttal letter. This letter needs to include the technical details of the sale as well as compelling evidence disproving the chargeback. The best rebuttal letter is tailored to the chargeback reason code, i.e., fraud, cancelling a recurring transaction, goods or services not received, etc. 

Finally, consumer claims should be addressed directly, whenever possible. All these pieces should be noted in a logical way, one that tells the story of the transaction from the authorization to the sale and delivery of merchandise/services and ending with the nature of the received dispute information. 

Chargebacks cannot be accepted as a routine aspect of doing business. Not only are they costly, but excessive chargebacks may target the merchant as an easy win to issuing banks, resulting in even more chargebacks.

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