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How to Manage Chargebacks in a Card-Not-Present Environment

The cost associated with chargebacks falls on the merchants’ shoulders but there are ways to fight back

The main purpose of a chargeback is to protect cardholders from unauthorized charges to their credit card. It’s not always possible to prevent chargebacks from happening but there are ways to reduce the number by implementing a chargeback management strategy at your business. Being organized is crucial in fighting chargebacks successfully. We’ve got a few basic suggestions to get you started.

  • ‍Provide excellent customer service. It will help to prevent unhappy customers from filing chargebacks. If the issue is resolved quickly and efficiently, the customer will have no reason to file a chargeback.   
  • Pay attention to technical aspects of the process. Promptly void or refund duplicate transactions, use correct expiry dates, and process refunds for returns and cancellations on time.
  • Describe products and services in detail on your website.
  • Track and keep proof or confirmation of deliveries for each sale.
  • Invest in chargeback management training for your employees who process payments on a daily basis.
  • Submit documentation within the time period indicated on the chargeback notification. This is very important because if it’s not done, the chargeback case is automatically lost by the merchant. 

The chargeback mechanism is great when it comes to protecting cardholders. The unpleasant part for a business owner is when a fraudulent transaction takes place or an unethical cardholder uses the chargeback process to get a refund or to game the system, the liability is on the merchant. Having an effective chargeback management program in place is a must to reduce revenue loss and keep your company’s chargeback rate well under 1%.


Tedd Huff

Tedd Huff, VP of Products, is a 19-year veteran of electronic payments, providing businesses with strategic and tactical direction by enabling a value-driven user experience. His goal is to simplify the complexity of payments and promote growth in emerging markets through fields such as mobile payments, e-commerce solutions, online fraud prevention and security. Tedd has headed a FinTech startup and delivered innovation and process improvements for multiple dominant payment organizations. As Vice President of Product for GlobalOnePay, Tedd heads up a team of global payment specialists, helping businesses grow faster by accepting a wider range of payments from virtually any market in the world.