By JonCarlo Hernandez, Digital Marketing Manager at Jusst
The holiday shopping season brings both opportunities and challenges for merchants. While sales surge, so does the risk of fraud and chargebacks. With e-commerce reaching new heights – $222.1 billion in online sales from Nov. 1 to Dec. 31, 2023, up 4.9% year-over-year – retailers must prepare for the surge in transactions, and potential increases in illegitimate chargebacks.
How merchants can prevent chargebacks:
Implement Clear Communication & Policies
- Clearly communicate shipping times and return policies to customers.
- Provide real-time tracking information and set up automated return confirmations.
- Make the refund process transparent and quick – notify customers promptly about processed refunds.
- Use billing descriptors that clearly state the name of your business on credit card statements.
How merchants can mitigate the damage of:
Strengthen Data Collection & Documentation
- Maintain robust transaction records, including delivery tracking and communication history.
- Review your data storage and seek opportunities for better data hygiene and handling.
- Calculate your win and recovery rates to identify areas for strategy improvement before the holiday surge.
Be Ready to Prevent the Best Evidence
- Review card scheme rules, including Mastercard’s First-Party Trust and Visa’s Compelling Evidence 3.0 guidelines. Incorporating these programs can make a significant difference and even shift liability for qualified chargebacks.
- Prepare resources to tackle common chargeback reason codes, especially fraud, “not as described,” and “product not received”.
- Prepare to handle chargebacks related to Buy Now, Pay Later methods, which saw significant growth in 2023.
Leverage Automation to Improve Efficiency Amidst Volume Surges
- Address scalability challenges by automating dispute processes.
- Dispute up to 100% of chargebacks within minutes – minimize the risk of missing disputes.
- Choose a solution that is easy to go live with.
- Consider partnering with a flexible chargeback management solution that can handle multiple payment service providers (PSPs).
- Consolidate data into one centralized hub for easier management and analysis.
Preparation is Key
Chargebacks can be a big challenge for retailers during the holiday shopping rush, but with proper preparation, they can be mitigated. Consider partnering with a chargeback management service to help with disputes and representment during the high-volume holiday season.
Justt’s automated chargeback management solution integrates easily with over 44 payment-service-providers to process and dispute 100% of chargebacks on behalf of merchants worldwide. Justt’s customer hub provides easy to understand case status and insights for each chargeback, so merchants can enjoy a more profitable and less stressful holiday season. Are you looking for AI-powered chargeback management solutions for your organization?
