How Chargeback Reports Help Reduce Risk and Retain Revenue

Chargeback management often seems like more of an art than a science. There are so many variables that are subjective and open to interpretation.

However, if merchants use the right tools, chargeback management can be a science. A thorough chargeback report is one of those tools. It transforms the financial burden from a bunch of random, abstract figures into concrete, easy-to-understand data.

What Information Does a Chargeback Report Share?

If merchants create their own chargeback report, the information it contains will depend upon the effort the merchant puts into data collection.

If merchants work with a professional chargeback manager, the reporting process will be quite extensive. When done properly, merchants are able to analyze the data contained in the chargeback report to detect patterns and evaluate risk. To compile useful chargeback reports, accurate records of the business’s credit card transactions, chargebacks, representments, and pre-arbitration chargebacks should be tracked.

The data contained in traditional chargeback reports allows merchants to:

  • Monitor alerts
  • Measure key performance indicators (KPIs)
  • View month-to-date chargeback rates
  • Review representment win-back rates
  • Identify merchant errors
  • Monitor affiliate fraud
  • Review geographical and demographical areas that are most profitable
  • How Can Merchants Use This Information?

Analyzing data is probably the least favorite task of most business owners. However, data review is essential when it comes to chargebacks. Compiling and analyzing chargeback reports is usually the only way to keep risk under control.

Merchants can better understand how their business practices factor into the consumer’s actions since customer satisfaction is a key component of successful chargeback management. A chargeback report will help merchants identify problems in this area, enhance sale conversions, and increase revenue.

A chargeback report is a reliable tool that helps merchants quickly assess and evaluate risk, liabilities, strengths, and weaknesses. Merchants can easily turn that information into actionable tasks. Reports of this type can often point out flaws and issues a business owner wouldn’t have otherwise noticed.

In general, an effective reporting system will help merchants:

  • Create a more effective chargeback prevention strategy
  • Successfully dispute chargebacks and recover more revenue
  • Improve the merchant’s reputation at the issuer level
  • Predict changes and trends
  • Decrease fraud
  • And much more!

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