To build a strong chargeback response process, you need to be collecting the right data.
Sadly, some companies I’ve consulted with did not collect the correct data to set themselves up for success in their chargeback response process. As described in the chargeback response article, you must build a skeleton that speaks to why an order was processed. User data is the bones of the skeleton. Here are some data points that you should consider recording within your platform to ensure that you do not become one of those unfortunate few.
Order verification at time of purchase
I strongly recommend collecting order verification for risky orders. My process dictates that users with orders considered to be risky are sent an order verification email where the customer responds to verify the order with specific order details. There are many variations of order verification, which can be used as customer communication for the chargeback response.
Order feedback post delivery
Can users leave a review of products they order? If they review an item, it is excellent proof against most dispute reasons. If you offer a service, consider milestone check ins where the customer rates the service and signs off on the deliverable.
Proof of delivery
Record the tracking numbers for at least half a year after a charge is placed as customers have up to 6 months timeframe to submit a chargeback. For services, preserve time stamped deliverables.
Build email support that is easily trackable with thorough order data to reference in your dispute response. If you have phone support, consider recording transcripts. Customer communications help to provide the context within the chargeback response.
Customer history and activity
For every chargeback response, you can include a list of the user’s entire order history with complete orders details such as card used, shipping and billing, IP address, whether it was reviewed, disputed, etc. I recommend automating this process.
In addition, have a look at whether the user has been active since the disputed order was placed and whether the IP address of activity has fluctuated. All user activity that can be monitored and recorded could help in chargeback responses.
Customer Identity Verification
WhitePages Pro is just one of several sources that can be used to verify the identity based on email, phone, addresses, IP, etc. This is useful in both identifying fraudsters and proving friendly-fraud.
Check out the Chargeback & Fraud Prevention Series Overview for more articles.