If you’re an e-commerce company that sells products directly to consumers and businesses, you’ve probably been through the chargeback process at least once.
You see, whenever a customer disputes a charge on their credit card statement (due to something like fraud or an incorrect price), they will usually initiate a chargeback process against the supplier. And as an e-commerce business owner, this is something you have to be prepared for.
However, using chargeback management software can help reduce your risk of getting charged back.
In this blog post, we’ll go over some of the features that you need to look for in the best chargeback management software solution:
1. Real-time Alerts Whenever There’s a Chargeback Risk
The first feature that you should look for when purchasing chargeback management software is real-time alerts whenever there’s a chargeback risk. If a chargeback management system isn’t able to provide you with this type of alert, there’s a good chance you’ll be hit with chargebacks that could have been easily prevented.
Make sure that you receive an alert every time a chargeback is initiated against your business. This way, you’ll be able to take immediate action and hopefully prevent the chargeback from happening in the first place.
2. Recovery Timeline
The next feature that you should look for in the best chargeback management software is a recovery timeline.
With this feature, you’ll be able to keep track of all your chargeback resolutions and see how long it takes to recover each chargeback. This chargeback management software feature will also help you determine the best course of action for each chargeback, as well as show you which chargebacks are taking too long to resolve.
However, sometimes you might be so busy that you forget to follow up with a customer when they initiate a chargeback. With a recovery timeline, you’ll be able to keep track of all chargebacks, regardless of whether they are resolved or not.
3. Automated Recovery Processes
The next feature that you should look for in chargeback management software is automated recovery processes. With this feature, you’ll be able to create a workflow for the resolution of each and every chargeback, including chargebacks that are initiated against your business.
Automated recovery processes will allow you to provide better customer support and show customers that you are taking the chargeback seriously and working to resolve it.
4. Item Tagging
The next feature that you should look for in chargeback management software is item tagging. With this feature, you’ll be able to tag specific products that are being frequently charged back.
You can then use this information to better understand why charges are being disputed and make adjustments accordingly. For example, if you see that certain products are being charged back due to shipping issues, you might consider offering free shipping with those products. This way, you’ll be able to reduce the number of chargebacks for those products.
5. Reprocessing for Failed Transactions
The next feature that you should look for in chargeback management software is reprocessing for failed transactions. This feature will allow you to automatically reprocess failed transactions that have been charged back against your business.
When a transaction is charged back and then successfully settled (meaning the customer’s money is returned), that transaction will appear as “failed” in your chargeback management software. You can then automatically reprocess that failed transaction, which will void the transaction and remove it from your books.
This feature is incredibly useful because it allows you to reduce the number of chargebacks that appear on your books.
As you can see, when it comes to the best chargeback management software, there are several features that you should look for when making your purchasing decision.
We hope that this article has been valuable in helping you understand how chargeback management software works and how to be better prepared when making a purchasing decision.