Chargebacks are commonly considered to be a friction point between merchants and customers. But it doesn’t have to be. Merchants that take the initiative can put chargebacks into the win column with a few easy steps taken before, during and after a disputed transaction.


As they say, a stitch in time saves nine. If you’re getting chargebacks, you need to ask yourself why your customers are going to their banks when they should come to you for a refund. Are your descriptors clear and recognizable? Are you providing cardholders with adequate contact information to come to you with any issues? And are your returns policies so strict that they are driving cardholders to chargebacks? Finding answers to these questions will help you to prevent chargebacks and improve customer relations.

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We say it all the time, but you need to capture usage data on all your customers. This data is used not just to fight chargebacks, but to also know how your customers are using your site. For example, if you get chargebacks where a product or service was not delivered as promised, you can use this data to retrace that customer’s experience. Data capture like user logs helps you better understand “UX” — geekspeak for “user experience” — to identify problematic areas.


A chargeback doesn’t mean you’ve lost the customer entirely. Follow up with the cardholder whenever possible. This is mostly in cases of friendly fraud or where products/services were not delivered as promised. You should recap to them the actions you took to resolve the dispute and incentivize the cardholder to return. It’s no different than when you extend an offer to any dissatisfied customer to bring them back into the fold.

Chargebacks are a challenge. But with the right approach, they’re also an opportunity. Chargebacks inform merchants of their vulnerabilities, and when those are addressed, it makes the merchant stronger. Chargebacks can also present a chance to gain or retain a customer when the merchant takes the initiative to make things right with the cardholder.

These are just a few steps merchants can take to turn the chargeback frown upside down. Find out more ways to reduce chargebacks and thrive by contacting us at ChargebackHelp. Drop us a chat down on the right, shoot us an email, or go old-school and call us 1.800.975.9905