TOOLS, EXPERIENCE AND KNOWLEDGE

Chargebacks are an unfortunate fact of life for card-not-present merchants. Many merchants spend substantial amounts of time and money trying to reduce or eliminate them. Typically, merchants employ a wide assortment of chargeback mitigation tools and methods—often overlooking some of the best options, and proceeding without a comprehensive plan of attack.

But there is a better way. A more efficient way.

Litle & Co.’s Merchant Services Group is expert in helping merchants manage chargebacks.  We review your chargeback history, take the time to analyze your specific situation, evaluate all the tools that are available, and help you come up with a comprehensive chargeback management plan.

Litle’s proprietary chargeback management system offers a rules-based engine that provides a flexible workflow capable of keeping up with ever-changing network regulations.  And, an online chargeback management queue allows our merchants to spend more time growing the top-line and less time managing the bottom-line.

THREE KEYS TO SUCCESS

There are three keys to successful chargeback management.

1. Develop a chargeback strategy.

Although some merchants are successful in virtually eliminating chargebacks, it’s not always a wise economic decision. For example, higher chargebacks may result from better marketing response rates. You need to take a strategic view of chargebacks in order to determine the ‘right’ level for you. Some things to consider include:

• Are you dealing in a high-fraud or high-chargeback product category?
• How do chargebacks impact the lifetime value of your customers?
• What is the true cost of each chargeback?

2. Analyze the reason codes.

Litle & Co. will help you build a custom solution for your chargeback problem, but before we do so, we need to know why chargebacks occur. This requires a thorough analysis of the reason codes that are assigned by Visa and MasterCard to each chargeback and the issuing banks from which your chargebacks are coming.  Once we know the reasons for your chargebacks, we can help you deploy the optimal set of management tools.

3. Mesh with marketing.

Chargebacks can often be driven by decisions made in your marketing department. For example, the decision to alter your refund policy, or the decision to market aggressively outside of your core customer demographic can lead to higher chargebacks.  If you’re facing these kinds of challenges, then Litle & Co.’s online reports will help you monitor the chargebacks created by individual marketing programs and predict how changes in your business model will impact chargebacks.