Chargebacks and Chargeback Management

What is Chargeback Management?

Chargeback-Management_BlueThe dictionary definition of a chargeback is a demand by a credit-card provider for a retailer to make good the loss on a fraudulent or disputed transaction. Chargebacks are a necessary evil of card not present commerce. Chargeback management companies provide merchants with assistance in responding to chargeback disputes, in an attempt to recover funds on behalf of the merchant for disputes that were unnecessarily filed by the cardholder or the issuer. Additionally, some chargeback management companies offer chargeback alerts, providing a service to notify the merchant of a chargeback that has not yet been filed, providing the merchant a short window to issue a refund prior to the chargeback being filed, circumventing fees and any fines due to excessive chargeback volume.


CNP companies that experience a high volume of friendly fraud chargebacks benefit most from chargeback management solutions, as those are primarily the chargebacks that can be recovered. Merchants that benefit most from deploying chargeback alerts are those on an excessive chargeback monitoring program through one of the card brands , often with average order volumes over $50.


  1. Visa's VCR: 10 Rules to Win | Merchant Guide
  2. 5 Mistakes Merchants Make That Lead to More Chargebacks | Feature Article
  3. E-Gift Cards & Fraud: 5 Ways to Avoid a Chargeback Hangover in January | Merchant Guide
  4. Subscription Merchants Waiting For Clarification from Mastercard on New Free-Trial Rules | Feature Article
  5. The Merchant Guide to TC-40s
  6. Friendly Fraud Hurts Merchants, Issuers and Cardholders: Here’s How | Feature Article
  7. Chargeback hangover: Dealing with the post holiday chargeback rush | Webinar
  8. What’s My Motivation? 8 Tips to Manage Your Fraud Team During the Hectic Holidays | Feature Article
  9. 2018 CNP Fraud Operations Study Results | Webinar
  10. 7 Insider Tips to Help You Win Your Next Chargeback Reversal | Feature Article
  11. Has Your Fraud Team Hit The Breaking Point | White Paper
  12. Is a CNP Fraud Chargeback Guarantee the Best Choice for Your Online Store? | Feature Article
  13. Chargebacks and Gift Cards | White Paper
  14. 3 Tips for Surviving the Post-Holiday Chargeback Rush | Feature Article
  15. Beyond VCR: How Evolving Regulations Are Changing the CNP Environment | Webinar
  16. 4 Ways You Can Fight Friendly Fraud Chargebacks | Feature Article


Merchant Guide to Visa’s VCR

Visa's VCR: 10 Rules to Win | Merchant Guide

In Spring of 2018, Visa announced a new initiative to streamline and simplify their chargeback/dispute process, dubbed Visa Claims Resolution (VCR). VCR restructures the chargeback/dispute process and includes a number of changes to the terminology, deadlines and process that affect you directly as a merchant. Get our Merchant Guide to learn how VCR will affect your business, improve your dispute/chargeback resolution time, reduce invalid disputes/chargebacks and understand the evidence changes/reason codes.

Get the Merchant Guide to Visa’s VCR

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5 Mistakes Merchants Make That Lead to More Chargebacks | Feature Article

Congratulations—you survived the crush of holiday sales! But now that the dust has settled and business is returning to normal, the post-holiday chargebacks are coming in.

Disputing chargebacks can be tedious and cumbersome, not to mention discouraging; the process doesn’t favor merchants, as banks and credit card companies require little proof on the part of the consumer to substantiate their claims.

Between the complexity of the chargeback process and the sheer volume of transactions and associated information that pour in during the holidays, mistakes are easy to make when challenging a chargeback. But they’re even easier to avoid by taking steps to prevent them in the first place.

Read the Article

E-Gift Cards & Fraud – 5 Ways to Avoid a Chargeback Hangover in January

E-Gift Cards & Fraud: 5 Ways to Avoid a Chargeback Hangover in January | Merchant Guide

According to, electronic digital gift cards are the fastest-growing segment of the gift card industry. As the electronic digital gift card industry continues to grow 29% annually with consumers, they are just as popular with fraudsters. Get our Merchant Guide to understand how fraudsters can access e-gift cards to buy and sell them at discount, learn how to identify e-gift card fraud and the best practices to prevent it.

Get the Merchant Guide to E-Gift Cards & Fraud

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Subscription Merchants Waiting For Clarification from Mastercard on New Free-Trial Rules | Feature Article

“We don’t know what the penalty will be for non-compliance,” Stout said. “Will it be fines? A chargeback liability shift? None of that has been expressed. We’re not telling anyone to do anything yet because I don’t think Mastercard has announced enough to be fully clear.”... For companies that rely on subscriptions—an increasingly popular business model for all kinds of products—a Mastercard announcement last week has set them on edge. The Purchase, N.Y.-based card network said it will require companies that offer free trials to get the approval of cardholders...

Read the Article

Chargebacks a problem? Find out what TC-40s are and how they are affecting your bottom line.

The Merchant Guide to TC-40s

Every time a cardholder claims fraud, issuers file a TC-40 claim for that transaction. These claims are then reported to the card brands and out to all issuers and to the merchant's acquirer. This report is known as the Risk Identification Service (RIS) for Visa transactions and the System to Avoid Fraud Effectively (SAFE) for MasterCard. Get our merchant guide to understand the way TC-40s work, learn the difference between TC-40 & Chargebacks and recognize the steps to determine if the TC-40 is impacting your business and how to address these impacts effectively.

Get the Merchant Guide to TC-40s

Friendly Fraud Hurts Merchants, Issuers and Cardholders

Friendly Fraud Hurts Merchants, Issuers and Cardholders: Here’s How | Feature Article

The harmful effects of friendly fraud are most evident to merchants and issuers, which face direct costs when a cardholder disputes a transaction and a chargeback is raised. But all three parties—merchants, issuers and cardholders—suffer because of this trend. Here’s a look at how: In the card-not-present (CNP) world, fraud liability rests with the merchant. That means when friendly fraud occurs, the merchant loses the goods/services and is saddled with the cost of the chargeback. But that’s just the start.

Read the Article

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Chargeback hangover: Dealing with the post holiday chargeback rush | Webinar

DJ joins Jimmy Westlake from Square, Kevin Lee & Jeff Sakasegawa from Sift Science as they detail how to streamline chargeback and risk management, leverage automation to turn your chargebacks into a revenue opportunity, prevent fraud on your platform to cut down on chargebacks and how visibility into your risk decisions and order details can help expedite chargeback representment

Watch the Webinar

What’s My Motivation? 8 Tips to Manage Your Fraud Team During the Hectic Holidays | CNP Feature

What’s My Motivation? 8 Tips to Manage Your Fraud Team During the Hectic Holidays | CNP Feature

Last year, e-commerce fraud spiked by around 22 percent during the holiday season. This period sees dramatic changes in the amount and types of fraud businesses encounter, from credit card testing and promo abuse to friendly fraud chargebacks and email tumbling.

So, what does that mean for fraud teams? ‘Tis the season to motivate everyone to get through the holiday rush. Here are some tips to make sure they’re in shape to face the madness head-on.

Read the Article

2018 CNP Fraud Operations Study

2018 CNP Fraud Operations Study Results | Webinar

Often, fraud departments are flying blind regarding the most efficient ways to assemble their teams, conduct their operations and evaluate solutions. Join DJ Murphy, Editor-at-Large Karisse Hendrick and Sam Garwood, Fraud Consultant for RISK IDENT, as they detail results of a new survey that asked fraud professionals to shed some light on the processes and tools digital merchants use to combat fraud. Learn how merchants of different sizes and in different verticals compose their teams and KPIs they use to measure success, typical organizational structures and how they affect teams and the mix of fraud prevention tools and manual review processes found across the industry.

Watch the Webinar

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7 Insider Tips to Help You Win Your Next Chargeback Reversal | CNP Feature

If a consumer files a dispute against your business, you can either accept the chargeback or challenge it through what is known as representment: merchants literally “re-present” the transaction to the issuer in hopes of having it reversed... Winning a chargeback reversal is not impossible, but the procedure is complicated and time-consuming, to the point where many merchants feel the end doesn't justify the means... To win a chargeback reversal, you must provide adequate "compelling evidence,” or documentation that contradicts the cardholder's claim and supports your case.

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Has Your Fraud Team Hit the Breaking Point

Has Your Fraud Team Hit The Breaking Point | White Paper

Most fraud teams begin with one person responding to customers who are calling because they saw an unfamiliar charge on their credit card bill. Or, maybe a company is experiencing chargebacks for the first time and one person is tasked to learn about the issue. In any event, for small merchants, the process is intensely manual. As a company grows, it may add a person or two, but merchants can gain substantial size without significantly altering the way they fight fraud. This can result in a personal cost for the employees. Get this white paper to learn how to manage growth and fraud prevention in an 'always on' environment.

Read the Whitepaper

Is a CNP Fraud Chargeback Guarantee the Best Choice for Your Online Store

Is a CNP Fraud Chargeback Guarantee the Best Choice for Your Online Store? | CNP Feature

By Rafael Lourenco, Executive Vice President, ClearSale

Merchants who sell online have access to markets and channels that traditional brick-and-mortar stores can't match. But those opportunities come with fraud risks that card-present transactions don't have because of the EMV liability shift. And as EMV has reduced fraud opportunities at point-of-sale terminals, fraudsters have gone all in on CNP fraud. One possible solution for online merchants is chargeback insurance, more commonly referred to as a chargeback guarantee, provided by some fraud-prevention services. Should merchants use a chargeback protection service? There's not a standard answer to this question.

First, why do some online fraud prevention companies offer chargeback guarantees? It usually depends on whether the company offers decisions or scores. Those that offer decisions...

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Chargebacks and Gift Cards

Chargebacks and Gift Cards | White Paper

Understand the e-gift card landscape: Get this white paper to understand actionable recommendations that will mitigate your risk in a channel where fraud is taking an increasingly significant bite out of revenue, examine the full scope of gift card fraud and learn how to identify and prevent fraud schemes affecting open-loop, closed-loop and e-gift cards while maintaining a healthy sales flow.

Read the Whitepaper

3 Tips for Surviving the Post-Holiday Chargeback Rush

3 Tips for Surviving the Post-Holiday Chargeback Rush | CNP Feature

A record-breaking season of holiday shopping is over, having generated $7.8 billion in revenue. That means the chargebacks have just begun! The massive increase in order volume over the holidays can wreak havoc on shipping companies and the USPS. Before Q4, FedEx and other companies like to set customers' expectations low by letting them know that their items might arrive late—or not at all.

Dishonest customers often take advantage of that messaging to file a chargeback, claiming they never received an item that's been sitting under the tree for weeks. And, it's not just scammers: impatient shoppers whose items might be on the way, but who are frustrated with the delayed arrival time, might file chargebacks too. The post-holiday chargeback rush is no joke. Here are three tips to help you make it through.

Read the Article

4 Ways You Can Fight Friendly Fraud Chargebacks

Even if you’ve been good all year, the holiday shopping rush always ends up dropping the worst kind of coal under fraud analysts’ trees: chargebacks. Friendly fraud chargebacks—when the cardholder disputes legitimate transactions—are among the worst pain points for e-commerce sites. But by harnessing the power of your fraud-fighting tool, you greatly increase your chances of recovering funds from friendly fraud chargebacks after the holidays. Here’s how.

To dispute a chargeback, you’ll need to gather “compelling evidence.” According to Visa’s chargeback dispute rules, merchants who present compelling evidence can prove a chargeback is invalid and recover funds. Compelling evidence includes:

Read the Article

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Beyond VCR: How Evolving Regulations Are Changing the CNP Environment | Webinar

Visa Claims Resolution brought some of the biggest changes the payments industry has seen in years. More policy overhauls are coming soon, and merchants are asking two key questions:

  1. What were the impacts of VCR? Did it solve the issues it was meant to?
  2. What’s next? Should we expect to see more reforms in payments?

Join Monica Eaton-Cardone, COO & Co-Founder of Chargebacks911, as she reveals the findings from their new study on the impacts of Visa Claims Resolution. Be the first to learn these stats and insights, and get the insider's perspective on what else is on the horizon. Learn how the VCR model will be utilized in other places in the payment ecosphere and how merchants can prepare, and even benefit, from these changes.

Watch the Webinar