As retail merchants celebrate and recover from record-breaking sales in the 2015 holiday season, consumers are starting to receive their credit card statements, revealing their generosity and, perhaps, rethinking and regretting their holiday spending. While most consumers simply will resolve to spend less in the New Year and move on, many will call their credit card companies to dispute the charges in the form of chargebacks. The industry has dubbed this “friendly fraud,” though merchants know it’s anything but friendly.
Managing chargebacks can be overwhelming for some companies. Because it can be time intensive to research the original transaction, determine the right course of action & create rebuttal documentation, some merchants write off the loses due to chargebacks as a “cost of doing business” and choose not to review or respond to their chargebacks.
Originally published on cardnotpresent.com on January 19, 2016, this article explores the merchant benefits to reviewing or responding to chargebacks.