Operational Excellence: Chargeback Recovery

Chargeback Recovery Part 1: To Do or Not To Do, That’s the Question

From the last few posts on effective order screening operation, you've probably noticed the following common themes:

o    Optimizing your operation often means winning a lot of little battles between doing the right things and doing things right (with the appropriate nod to Mr. Drucker)

o    Collecting and analyzingdata about what you do helps you refine your screening and decisioning process, as well as identifying new tests or rules to implement

o    You should strike a balance between the appropriate level of detection and the potential for false positives that often translate into suboptimal customer experience

Let’s now talk about chargeback recovery. In a lot of ways, the themes you noted above apply to this complex but important part of your risk management operation. Some merchants may not actively pursue the chargeback dispute resolution process, either from a lack of available resources, or inexperience with the steps involved. Our 11th Annual Fraud Report shows an average re-presentment rate of 53% and a success rate of 42%, for an average overall recovery percentage of 24%  [note: if you simply multiply the two averages you get 22% but we calculate the recovery % for each merchant re-presenting and then average this estimate to get to 24%]. Depending on your chargeback rates, business model, margins, and available resources, you may be considering adding or improving your chargeback recovery efforts. In my next entry, I'll discuss some things we've learned as we've worked with merchants in managing their chargeback dispute resolution processing.

Comments

[John]

Nice Information .Thanks for posting .

chargeback