fourteen years in the information technology industry.Read more
fraud library is your first stop to find free research.
Read more 
Read more Chargeback Representment - Fraud Library
The Fraud Practice eCommerce Fraud Consulting Services
Chargeback representment is the process by which a merchant can dispute a chargeback with an issuing bank. The representment process allows merchants to present evidence to prove that a chargeback is not warranted.
Not all chargebacks are equal ...
Chargeback representment is the process by which a merchant can dispute a chargeback with an issuing bank. The representment process allows merchants to present evidence to prove that a chargeback is not warranted.
The success rate for fighting chargebacks can vary greatly from merchant to merchant and from industry to industry. Some vendors offering outsourced representment services claim to have an 85% success rate on the chargebacks they select to represent. These vendors do not fight all chargebacks, they are selective in which ones they do fight.
Considerations When Implementing or Buying This Functionality
- Before you decide to start fighting chargebacks, make sure you analyze your business case. Representment carries a fee from your acquirer, so you may end up spending more money than you will get back from the process. In general, if your loss is less than $25.00 than you should evaluate the costs of representment first.
- Make sure you are doing the right things in your order process such as AVS and proof of delivery, as these go along way with representment.
- Be selective on which chargebacks you fight, not all chargebacks are the same.
- Even if you are selling digital goods, there are chargebacks that are customer service related, that you still can win.
- Don't forget about authentication and verification.
- Check with you acquirer if you are in a high risk market, they can typically tell you if representing makes sense for you.
Estimated Costs – If you are going to pay an outside company to represent for you, the costs can vary greatly. Some vendors offer a pay-for-performance model, which means they only get paid if they win the representment.
Alternative Solutions – Chargeback guarantee, chargeback insurance.
Vendors – Transmedia, Vindicia, Chargeback Experts
Property of The Fraud Practice, all rights reserved, no unauthorized duplication, reproduction or distribution without the express written permission of The Fraud Practice.