Chargeback Representment – How To Do It

Have you received a chargeback that you feel was illegitimate? Then, you’ve come to the right place. Through chargeback representment, you are to submit evidence proving the chargeback is invalid.

Chargebacks can wreak havoc on even the most successful online businesses if not managed properly. While chargeback representment is a last resort, it can still be effective and save money. Having a chargeback management team to do the representment for you can give you a better chance at winning the dispute and save you valuable time.

In the article, we will break down what chargeback representment is, when it should be done, how to submit your compelling evidence, and explain why you should partner with CB-ALERT to have a better chance at winning the dispute avoiding future disputes.

Key Takeaways:

    • Merchants can accept the chargeback and pay all associated fees, hire a chargeback management team for representment, or try to handle the representment in-house.

    • Representment is used to fight invalid chargebacks

    • You will need to submit a rebuttal letter during representment.

    • A chargeback management company such as CB-ALERT can handle representment on your behalf.

What Is Chargeback Representment?

Chargeback representment is a heavily regulated process that allows merchants to fight invalid credit/debit card chargebacks.

Chargeback management companies often carry out chargeback representment as it is a rather time-consuming process. 

During representment, the merchant will submit evidence to the bank to prove that a transaction was valid and that the cardholder’s claim is false and needs to be overturned. 

Unfortunately, modern fraudster’s have caught onto loopholes that allow them to file a win unwarranted chargeback claims with their banks. It is estimated that over 80% of all disputes are from friendly fraud, which results in becoming a merchant’s most significant threat to growing their revenue.

So why are so many fraudster’s able to trick the chargeback system? Credit card brands put chargeback rules into place to protect their cardholders.

For this reason, it is wise to hire a chargeback management company as they know the ins and outs of the industry and how to present data that can overturn the chargeback through representment.

*Chargeback representment is a potent tool when used effectively, and it can be used to contest illegitimate 

Chargeback Representment Options

You have three options if you find yourself with a chargeback that you believe is invalid. You can accept the chargeback, fight the chargeback in-house with a team member, or hire a professional chargeback management company – CB-ALERT.

By partnering with CB-ALERT, you are not only improving your chances of winning the representment significantly, but you are also freeing up valuable time for you and or your staff.

Accepting The Chargeback

If you have a chargeback problem, this has likely been your approach to chargebacks. The only time that this could make sense is if you receive chargebacks rarely and you need proper evidence to win the dispute.

Fighting Chargebacks In-House

While this can certainly be done, the question is whether or not it will be done effectively. Chargeback management professionals understand the frequent rule changes better than any staff member, making them more valuable when it comes to chargeback representment.

Outsourcing Representment To A Chargeback Management Company

Chargeback management is a highly profitable industry because it saves companies millions of dollars in potential lost revenue.

By outsourcing your representment to a professional team, you are increasing your chances of winning the dispute, providing yourself with a team using AI tools to your advantage, and finally, collecting data analytics to put into place to snuff out further chargebacks.

Should you choose a chargeback management company, you must consider your options and opt to go with a company that provides you with a good ROI.

Why Should You Represent?

You should re-present to recover lost funds that are going down the drain. You should also do this to prevent your chargeback ratio from getting too high and causing a severe problem to your business and revenue stream.

Should you choose to ignore friendly fraud, you are not only losing revenue from the chargebacks, but you are also choosing to ignore what is causing the chargebacks in the first place. 

This is the most significant part of the equation, as chargebacks become a problem when the reason they are occurring isn’t taken care of.

What To Do Prior To Representment

Before representment, you will need to get to the bottom of the reason code. It’s important to note that the reason code doesn’t always indicate the accurate reason for the chargeback, but you must respond to it as if it did.

Chargeback Representment Overview

chargeback representment flow

Let’s build out the workflow of a chargeback representment case below:

*These are the steps to take after identifying the reason code for the chargeback.

    1. Determine The Response Time Limit: Determining your time for representment is critical. This time frame varies depending on the card brand and the reason code.

    1. Compelling Evidence/Compelling Evidence 3.0: This is the most significant part of representment. Compelling evidence varies depending on the card scheme (another reason for hiring a chargeback management company); however, here are some examples of compelling evidence that is required in representment.
        1. Copy of sales receipt/sales form

        1. Proof of delivery/tracking numbers

        1. Copy of your return policy with proof that it is adequately documented on your website or point of sale

        1. Descriptions and screenshots of items as they appear on your site

        1. Communication that shows delivery was made

    1. Draft Chargeback Rebuttal Letter: We recommend viewing our article that breaks down rebuttal letters so that this is done correctly. You will need to submit a formal outline of your chargeback case, which is referred to as your rebuttal letter. When writing this, focus on keeping it professional and showing the evidence that proves the transaction was valid. Be sure to eliminate feelings when constructing this article by stating facts and keeping it concise.

    1. Compile Evidence And Submit Representment:  This is the final step of the representment process. Be sure to follow all deadlines. Please meet timelines to avoid a chargeback. All evidence should be submitted to your acquiring bank, which will then contact the issuing bank. 

Throughout this process, you may need to submit additional evidence.

Below you will find the chargeback process:

    • Merchant sends their evidence to the acquiring bank

    • Acquiring bank reviews and sends evidence to the issuing bank to be reviewed

    • Issuing bank sides with the cardholder or merchant or files pre-arbitration.

How To Win Chargeback Representment

While winning representment is not easy, it’s not impossible. Below are some tips from our experts to help you win your chargeback representment:

    • Understanding the system: If you don’t understand the process of representment, you’re not going to win the dispute.

    • Create an in-house system to follow: If you’re filing without help, organization is key. Create a system that allows you to organize and submit your data quickly.

    • Time is of the essence: Be sure to meet all deadlines. Also, swift responses will significantly help.

    • Learn reason codes: To do this efficiently, you need to know the reason codes to begin building your case.

    • Submit a thorough rebuttal letter: The rebuttal letter is one of the most important parts of the equation. Be sure that your rebuttal letter is perfect before submitting it.

Following Representment

Be patient when waiting for the result of your representment. The time can vary, and it’s best to wait until contacted before reaching out again.

The results are as follows:

    • The bank rules in your favor and closes the case

    • The bank rules in favor of the cardholder based on either new evidence or the original evidence

How A Chargeback Management Company Can Help With Representment

First and foremost: a chargeback management company will give you a much better chance of winning representment. On top of this, a good company can help you in all phases of a chargeback to put a damper on as many disputes as possible.

Your chargeback management team will work with you to improve your chargeback defense throughout the entire cycle of chargebacks, including pre-dispute.

Does Representment Vary Between Merchants?

Representment varies between merchants, reason codes, and card schemes.

The evidence needed to be submitted will vary between merchants depending on the services they offer, such as physical goods, digital goods, or services such as marketing.

Finally, it will vary based on whether or not the purchase is a recurring transaction or a one-off.

What Is The Chargeback Representment Win Rate?

The chargeback representment win rate is below 30% when done in-house. When you work with a chargeback management company, you can significantly increase your odds of winning.

Choosing CB-ALERT For Your Chargeback Representment

If you want to save money and time-fighting chargebacks, look no further than CB-ALERT. The entire process of representment needs to be handled swiftly, and it requires countless hours of work.

Pass off your representment to CB-ALERT and continue to grow your business to the next level. We will also put in place measures such as chargeback prevention alerts.

The alerts we specialize in are:

Please fill out the application below to get started with chargeback representment.

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