CC processing / dispute question
 

Need some input here from someone knowledgeable ...

For example, if a company is doing 2% CBs/retrievals and winning 75% of those disputes for a total of 0.5% lost disputes, would that company be considered in good standing or no?

I feel I may have been under the mistaken assumption that only the amount of disputes LOST was evaluated by the banks.

Thanks for the help.

No processing dudes around today?

I'll give your service a plug for the feedback :P

While it's definitely better to successfully dispute 75% of your chargebacks and retrievals, the very fact that you are getting them in the first place indicates an issue for many acquirers. I would say that most acquirers/ISOs would consider the percentage of CBs/retrievals you receive as part of their risk management, but they will take some consideration as to your success in reversing them.

Winning chargebacks doesnt help your percentage. But it's mitigating if you ever go over your threshold.
DUke

you can't go over 2%. they have costs to dispute them. they have costs to deal with chargebacks. they don't want you to get to that point.

Hmm, I'm investing a lot of effort in combating disputes, which is fairly effective - but it's frustrating to find out that doesn't even matter too much.

It is worth your time/money in combating disputes. Although the CB ratio is a hard line with VISA/MC, that can result in fines to the acquiring bank, the Retrieval Request ratios are not. Successful reversal of RR's will keep you from going over that hard line.

Obviously, a high number of RR's will make Risk Managers of banks and processors a bit nervous, but it certainly helps a great deal when you are consistently reversing the RR's to keep under the 2% level.


Unfortunately, when it comes to most adult membership (non-tangible), transactions, most issuing banks do not even issue a Retrieval Request, but simply issue a Charge Back, which does not allow the adult membership merchant a chance to dispute it.




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Thanks Michael

We're doing tangible items, and are probably under the threshold at the moment for both disputes as a whole, and way under in terms of disputes actually lost. But I'm just realizing now that the total number of disputes (won or lost) is what's factored heavily.

I know everything has always been slanted towards the consumer, but it's still amazing to me that a customer can order something, not read the terms at all, sign for the shipment, still dispute it, AND keep the product. Makes me feel like I'm missing something...

Let me know if I can ever be of any help to you Brian.




:)

brian, the % is cb's.. whether or not you win or lose the disputes it doesnt matter.

it helps to recover revenue to dispute each chargeback, but the % counts against you.

are you in any monitoring programs?

I notice when you buy expensive appliances etc now they put these big inserts around the item saying " DO NOT RETURN TO STORE CALL 1-800-whatever".

Not sure what kind of support # / service you ship with your product but perhaps you might want to look into making it clearer , maybe it will help keep the initial cb's lower.

example. IF YOU HAVE ANY PROBLEMS AT ALL WITH THE PRODUCT PLEASE CALL 555-555-1212