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B2B Vault Episode 31: Chargeback Rescue Part 2

Written by Allen Kopelman

December 17, 2021

merchant statement analysis

Video Transcription

Hey everybody, today, B2B vault the payment technology podcast. We will bring you an episode about retail chargebacks and how to project how to protect your business chargeback rescue part two.

So, you know, for chargebacks on the internet, there are many different services that merchants can subscribe to, and they help the merchants, you know, deal with, um, chargebacks from, from that standpoint. But in retail restaurants, bars, there’s just a lot of chargebacks going on right now. I’m not sure if it’s related to customers trying to be scammers or customers who weren’t paying their bills. And then the financial institution is, is, um, running these chargebacks. And often, you know, they’ll send out chargebacks and hope that the business owner does not answer them. So it’s always wise. If you get charged back to answer them promptly, um, if you’re in the card, present business and to consult with somebody so that you learn how to write the letter correctly, or you hire somebody that can help you put the letters together, sit down, you don’t lose chargebacks because it’s getting the fighting. The chargebacks are getting a little sophisticated. It used to be years ago; you could send in a copy of the receipt and show that it was an EMV transaction or before EMV. The card was swiped, And that was it. It was pretty much done. Now they’re adding all kinds of stuff.

So, I will go over some of the standards, um, chargeback reasons that we’re seeing come in from our customers, duplicate processing. So customer claims they were charged twice, and they might have two or more sales at your business. So how can this happen? Somebody comes up to the counter, and they buy two clothing items. And then they had another thing they thought about. Maybe they walked out of the store, and they come back, you know, whatever, an hour later, two hours later, 10 minutes later, they buy the second item and run a second sale. Then they get their bill, and they forget, oh, did I believe two things that ABC clothing store? And they click on it. The chargebacks have become so easy now because of the, you know, everybody working at home and the limited workforce. And I think some of the, you know, so now you can click on it and tell them you want to dispute the charge. So they don’t even have to call up, sign anything it’s become, you know, boom, it’s just done. And then, to fight the chargeback, you have to see what you’re doing. You got to send in all the receipts, and you got to write a whole letter app explaining, you know, that this entire thing, but duplicate transaction happens in restaurants and bars.

Every week, we see a person goes to the bar and has a couple of drinks. Then they close out their check. Then they go to the table, and then they eat. Then they claimed duplicate processing. So this, you know, you have to be, you have to, uh, it’s you have to spend time and fight these things, um, paid by another method. So they claim they paid by it with another card or with cash. This one, I find kind of funny because they’re just trying to get out of paying. And you know, so you have, again, you have to put together a letter send in documentation, did not receive goods and certain goods or services. We’ve seen this a ton. Like, I don’t know how that, you know, they, I don’t even know how the card issuers that give people credit cards even allow this. I mean, they can see that it was a card-present transaction. They were in a retail store. You’re not paying for a shirt, or you’re not paying for your lunch until after you eat it, like the shirt, you walk up to the counter, you hand them the shirt, they put it in a bag, and then you put your credit card in the machine, but this is what’s going on. Uh, and you got, again, you got to send in documentation, you got to write a letter cardholder was expecting a refund or a partial refund.

This we’ll see in almost every chargeback, no matter the reason code is, they’ll include a whole bunch of other stuff. And that’s why you have to be very detailed in the letter writing. And we’re experts at that. We offer a service to our merchants called chargeback rescue. You get a chargeback. We help you fight it. We know all the rules. We’re constantly keeping up with the authorities. We talked to the chargeback department all the time. So it’s, it’s very, very important, the wrong amount charged again, the same thing. They’re just trying to get out of paying again. You got it down. It’s all the same point of interaction error. This one, I didn’t even know what it was until a few months ago, we started to see these popups, and oh, I’ll call the chargeback department. And they go, oh, well, the customer claims that you know, you charge them the wrong amount or something. Uh, I don’t know. Um, and then you see these nonfinancial requests for information are critical to responding. If you do not respond to the nonfinancial requests for information, otherwise it used to be referred to as the retrieval request, then that charge automatically goes to chargeback. You’ll get another letter, and you automatically lose it.

So that’s, you’re done other ones where you lose all the time as if you don’t have EMV readers in your business. And somebody makes a nonfinancial finance request for information, and you send them the receipt, and it doesn’t show that it was processed by chip. Then you’re going to lose. You’re going to lose the chargeback because it was an EMV fallback transaction, which dates back to 2015. So that’s six years now, um, with that. And there are still businesses that, that are getting those. So it’s imperative. You know, you can’t stop chargebacks. I mean, you can do things like put information on the bottom of your receipts, all sales final, so right, right where they have to sign everything. There’s a lot of things you can do to, you know, and we do that as part of our business, we consult with merchants, and we talked to them, oh, do you need a footer on your receipt? All sales final, whatever it is, we get, we get it for them so that they can properly as I said, you can’t stop people from charging back because it’s part of their cardholder agreement that they have the right to do a chargeback.

We educate merchants on fighting a chargeback properly and format the letters correctly. You know, we show them how to be detailed in the response. We help them write the letters. Um, so we have a program pro chargeback rescue. If you’re doing merchant services with us, we help you with your chargebacks. And it’s vital. You know that you can put minor roadblocks or speed bumps in the way of the scammers to kind of slow them down. And you can PR by having proper policies on your invoices, on your sales slips, um, you can assign, and your business does not help. You need to have something within one inch of the signature. And that pretty much, you know, will help you win the chargeback. So we have another slide, Justin, or that’s it. Okay. So, you know, that’s, what’s going on with chargebacks and the, and you know, e-commerce chargebacks, as I said, there’s a lot of different services that can help you protect your business with that. And with retail chargebacks, there’s retail, restaurants, bars, you know, you have to, you have to see what kind of activity you’re getting, what’s going on. And then, you know, you can slow down the, you can slow down the scammers. You can’t stop them from charging back. I’ve seen people put on invoices, and you can not do a chargeback; that’s doesn’t matter though, going to do the person who’s going to do a chargeback, going to do it anyway. So you have to, you know, have stepped in place and have a system in place, either learn to do it yourself. But if you’re losing a ton of chargebacks, or you’re even losing one chargeback, and you don’t want to lose any more chargebacks, you know, contact us.

Visit the website NPSbank.com. You can also go to chargeback rescue.com, find out about what we offer, and you can set up a call, and we can, uh, discuss your business and how we can help you with chargebacks. Thank you for listening; today is another episode in B2B Vault, and you can follow us on all the popular podcast networks and YouTube. Thank you very much. Carpe diem seize the day.

Merchant Statement Analysis | Merchant Services Statement Analysis
Merchant Statement Analysis | Merchant Services Statement Analysis
Merchant Statement Analysis | Merchant Services Statement Analysis

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