- BY PRODUCT
- BY REQUIREMENT
- BY INDUSTRY
- BY ROLE
- TECHNICAL CENTER
- Customer PortalContact Us
Chargebacks are a real challenge facing many digital businesses today. Smart businesses working to resolve chargebacks usually see a positive impact in their revenue results.
Chargebacks can provide an outsider’s view into your business and provide you with valuable information that will not only help your subscription business grow, but help your subscription business evolve into one that attracts and retains the best customers.
The most beneficial approach to chargebacks is one of informed action, where in-depth analysis is done on your chargebacks and, through that analysis, smart decisions are made concerning your chargebacks and subscription business model. Here are some guides for effective chargeback management.
Know Your Payment Processor: Identify account manager and make regular contact. This will help in understanding the requirements for successfully disputing chargebacks, and assist in maintaining a strategic chargeback rate. Understand all the tools your processor makes available to their digital businesses and choose what works best for your subscription business.
Value the Importance of Good Record Keeping: Tracking your chargebacks and the metrics surrounding them can provide invaluable intelligence that can inform your subscription business practices. Monitoring your chargeback rate from month-to-month can alert you to potential problems. If your chargeback rate suddenly spikes, you can trace it back to changes you may have made to your subscription business or pricing models.
Listen to What Your Customers are Telling You: Customers feedback can often bring to light issues about your subscription business model that you are not aware of and can help you make improvements that will attract the best customers.
Appropriately Manage Your Chargebacks: If you have proof that the customer used the service and all of the information you have on file matches the information in the cardholder’s documentation, it is sound business practice to dispute the chargeback. Do not base decisions to dispute solely on reason codes and disputing chargebacks that are issued on transactions that are obviously fraudulent is not good for your subscription business.
Understand Your Chargeback Threshold: Understanding your business’s tolerance level will ensure you maximize your recurring revenue stream while minimizing your chargebacks.