In a perfect world, you make a sale and you get the money, end of story. However in these days of rising credit card fraud, more consumers are scrutinizing their bank statements and some are even openly gaming the system. When a cardholder sees a charge they don’t recognize, they call their bank. Banks routinely grant chargebacks to refund their customer, almost as a common courtesy. Chargebacks are so easy that anyone can abuse them to get your product and take their money back too.
This “friendly fraud” is now the fastest growing ecommerce crime as a result. For example, Visa reported that in fiscal year 2012, merchants faced a total $11.8 Billion in loses from this type of fraud. That’s compared to identity theft, which totaled $2.7 billion in the same year. VISA estimates that rates of friendly fraud increase roughly 20% each year, meaning the 2019 number has more than doubled since 2012.
The merchant has been completely locked out of preventing this rise, until now.
The Solution: Representment
When the merchant makes a sale, they submit the transaction to receive the funds from the customer bank; this is called “presentment.” Chargebacks reverse the presentment process. Hence “representment” is re-submitting a presentment that was reversed by a disputed transaction. It’s the merchant asserting their right to that transaction’s revenue.
Until now, a merchant could only pursue representment after the first presentment is declined by a chargeback, which takes the merchant’s revenue and gives it back to the cardholder. The merchant then has to represent the charge with any additional compelling evidence to prove the cardholder made the purchase. The merchant paid the chargeback penalties AND their processing score took a hit, regardless if their representment succeeded. Representment has been such a hassle that half of all friendly fraud chargebacks go unchallenged by merchants.
Resources on Compelling Evidence
Represent with ChargebackHelp
ChargebackHelp is changing that for merchants. We’ve always taken an aggressive stance against friendly fraud chargebacks for our clients, by fighting the right disputes, helping to capture and organize our merchants’ transaction data, and promptly pressing their case against chargebacks. Now, we are able to send compelling evidence directly to the cardholder as soon as the transaction appears on their statement.
If a transaction descriptor confuses a cardholder, they can now drill down into their online statement and get better product descriptions, merchant contact info, delivery confirmations, purchasing device ID and more. It’s all sent in real time, before the cardholder can even scratch their head, let alone file a chargeback.
With ChargebackHelp Representment, your revenue stays right where it belongs—in your bank. We don’t just “reverse” chargebacks; we also prevent them. That means no lost revenue, no penalties, and better processing scores. ChargebackHelp has tremendous experience with successful representment, such that we can guarantee your ROI on representment cases. Together with our merchants, we are helping to tip the scales against friendly fraud.