Payments Blog

Chargebacks and the Representment Process

The holidays are a joyous time for everyone in the digital commerce world. Consumers, caught up in the season, are often looking to buy a good deal of products, whether it be for them or for their family and friends, which means merchants are capitalizing on all these additional sales. Any uptick in transaction count is also good news for issuers, card networks and other organizations in the industry.business documents on office table with smart phone and digital tablet and graph financial with social network diagram and man working in the background

After the holiday season, merchants tend to feel very good about their results, and with good reason. This is likely the most profitable period of the year for many of them, making it easy to get swept up in this success.

But just a couple weeks after the start of the new year, these merchants will begin to see chargebacks trickle in. They will be initiated by consumers who are either unhappy with their order or those who have realized they were the victim of fraud after-the-fact.

Some consumers, however, will initiate unjustified chargebacks if they’re having second thoughts about a specific product or if a friend or family member has informed them that they feel the same way about a gift. In these instances, it’s not unlikely for merchants to feel somewhat helpless, as chargebacks are often rewarded to the consumer.

But, through the representment process, merchants can dispute these unjustified chargebacks and recoup the funds they lost from the initial chargeback. There are many factors that go into this process, including the timing of the chargeback. It’s important to act quickly, as merchants must file for representment within a certain timeframe.

Additionally, while the holidays can be hectic, any merchant hoping to file for representment needs to maintain as much information as possible regarding the consumer and their transaction. This includes purchase receipts, shipping and delivery receipts, business records and other important documents that could be useful in a case.

While this option is available to merchants, unfortunately, it’s often not effective. The best way to recoup funds from a chargeback is to avoid them altogether. The Cardinal Authentication Network, powered by data from both merchants and issuers, can help reduce the risk of chargebacks because of this enhanced data.

With this new data, issuers can make better, more efficient risk decisions on all their transactions. This means fewer fraudulent transactions will slip through the cracks which, in turn, means there will be fewer chargebacks on the other end.

The Cardinal Authentication Network is focused on helping mitigate the risk of chargebacks, and through years of innovation, we have been able to deliver on this promise.

With the Cardinal Authentication Network, Cardinal puts Authentication First.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: Fraud, chargebacks, Cardinal Authentication Network

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