From Disputes to Dollars: Unveiling Chargeback Strategies - with Chargeback Gurus
Rodrigo Figueroa, COO at Chargeback Gurus
In episode 95 of The Payments Show Podcast, I spoke to Rodrigo Figueroa who is is the COO at Chargeback Gurus.
Chargeback Gurus helps businesses to prevent chargebacks and recover more revenue with flexible technology solutions.
AUDIO Version: thepayments.show
Episode Highlights:
Unforeseen Revenue Leakage: A Hidden Challenge for Companies
Outside of the cost itself, the worst for me is always the distraction for these companies. It's just a difficult economy out there. You want to make sure that you know exactly what your revenue was, and then you find out a couple of days / weeks / months later that you actually have all of this revenue leakage based on a fraud attack or friendly fraud, whatever it is… like money that they already assumed was in their pocket, and it's not anymore.
Reason Code Fraud and First-Party Abuse
We have to talk about reason codes. The reason why the chargeback was originated, and the very first element that matters there is when you actually look at the reason code fraud. You're going to have to ask yourself that question as a merchant. Is it really true fraud? I mean, was it really a stolen card or is it just “friendly fraud”? To be honest, I hate that term... I actually prefer the term “first party abuse”. So it is a legitimate transaction done from a legitimate customer that now is creating that dispute because they want whatever they bought, they thought they bought for free.
From Understanding to Fighting Effectively
Internally, we actually use this statement: “every chargeback tells a story”. We're always trying to understand that story behind the chargeback. And that will allow us to be much more effective in terms of how we fight… At the beginning we're fighting, but in the background, we are understanding. Why is it that this merchant is getting exposed to this type of chargebacks? What is it that they can actually do on their backend, on their point of sale, on their own practices, even on their terms and conditions?
