Useful tips for merchants to handle chargebacks

Useful tips for merchants to handle chargebacks

Accepting credit card payments for an online store is pretty much expected these days. For the online merchant, getting hit with credit card disputes (a.k.a. chargebacks) is also inevitable. There are things that a merchant can do to mitigate the losses from chargebacks.

Merchants can fight chargebacks with evidence

While merchants may not always win credit card disputes, having proof of delivery can help their case. This is especially useful for customers that initiate chargebacks due to non-delivery of goods. With the help of the courier having the recipient sign for the delivery or taking a photo of the item being delivered, merchants can build a strong case that they are being defrauded.

Response speed is key to defending your case

Merchants must respond within a reasonable period of time with evidence to support their case. Failure to do so will mean that the card issuer will proceed with the chargeback request.

Chargebacks are not always due to malicious fraud

Unfortunately, people can get forgetful at times about what they’ve purchased recently. If they see a transaction in their credit card bill that they don’t recognize then automatically most people will just file a credit card dispute. That’s known as a friendly fraud.

Merchants can mitigate this by contacting the buyer to clear things up. It also helps if the billing descriptor is clear enough on the identity of the online store. If the store name and billing descriptor don’t match, then the merchants only have themselves to blame if anyone files a chargeback request.

Protect online stores with FraudLabs Pro

When dealing with bad actors making fraudulent purchases on online stores, a good solution is to use the FraudLabs Pro fraud prevention service. FraudLabs Pro can easily screen the order details for potential fraud signs such as repeated orders from same IP address within a short period of time. It can also detect any blacklisted credit cards or email addresses.

Using FraudLabs Pro, the online merchants can rest easy that most orders being made in bad faith will be caught. The highly effective fraud screening algorithm in FraudLabs Pro can flag these orders for either manual review or reject them outright.


Merchants can screen up to 500 orders for free with FraudLabs Pro so they should install the FraudLabs Pro plugin into their web shopping carts. This will definitely improve their revenue stream once the fraudulent orders are stopped in their tracks.

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