Navigating the Chargeback Storm: Winning the Battle with Chargeflow
Dan Moshkovich, VP of Marketing, Chargeflow.
In episode 87 of The Payments Show Podcast, I spoke to Dan Moshkovich, VP of Marketing, Chargeflow.
Chargeflow helps eCommerce brands recover chargebacks automatically using AI and software.
AUDIO VERSION: thepayments.show
Episode Highlights:
Transforming Extensive Effort into Successful Dispute Resolution
If you have a thousand chargebacks that you're planning on disputing per month, that's close to 1,000 man-hours of work… that’s becoming a major issue for especially some of these larger merchants that process a lot of revenue and a lot of transactions. And even the smaller ones that we service don't have the capacity. They don't have internal teams to handle all this all this work. Our solution is 100% automated. We do all the work for them. We submit everything for them and we're able to do it because we enrich all the evidence using 3rd party signals. We're able to achieve a much higher win rate than the merchant would on their own.
Mastering Chargeback Evidence: A Delicate Art
Financial institutions require ‘compelling evidence’ in order to successfully resolve a chargeback. We need to make sure that that the submitted evidence includes all the right information… and presented in a very specific way. There are very specific templates that need to be built in order for the financial institution to rule in a positive favour. That means that the evidence has to be collected and presented in a certain way and if it's not, that really reduces your odds of winning that chargeback. Merchants struggle with this when they try to do it on their own. They're not really familiar with the nuances that these institutions are looking for in the dispute evidence. So they throw stuff together into the template and hope for the best… and that really doesn't work.
Navigating Friendly Fraud: The Post-Transaction Dilemma
The challenge with friendly fraud is that it's the actual person that the card belongs to. So these fraud filters, fraud engines or anti-fraud prevention engines won't detect that. They will just let that through because it's that person who's making that transaction. It’s only post-transaction when chargebacks become an issue and that person decides that the item didn't arrive, or that the item was defective, or they just decide that they don't want to pay for the item.
