Effective Compelling Evidence is Crucial for Winning Chargeback Representments
Successfully challenging and winning chargeback disputes requires the effective presentation of compelling evidence. The veracity of the compelling evidence is the determining factor in obtaining a favorable ruling for the merchant. This centrality has sometimes driven certain chargeback service providers to submit inaccurate or erroneous content as compelling evidence. Merchants can successfully challenge winnable chargebacks with a clear understanding of legitimate compelling evidence and how to present it in the dispute representment letter effectively.
What Is Compelling Evidence?
Compelling evidence is the documentation and evidence that merchants present in order to support their representment efforts. It is the central part of the representment package and it is the determining factor in any decision about which party will prevail. Rebuttal letters serve to present the compelling evidence but the compelling evidence itself is ultimately the key subject of consideration.
Match the Compelling Evidence to the Dispute
Compelling evidence must match the reason code given for the chargeback. If the reason code for the chargeback is something relating to the incorrect amount being processed, evidence of a delivery confirmation slip would not be valuable, for example.
Additional details of the initial charge will necessarily guide what compelling evidence should be used. A digital transaction may prompt one variety of compelling evidence (IP address, email confirmations, CVV matching, etc.) while an in-person, card-present transaction might necessitate another (signed receipts, a scan of a photo ID, etc.).
Accuracy, clarity, and depth are crucial elements of good compelling evidence. Poorly prepared or incorrect chargeback responses have a very low probability of resolving in the merchant's favor. Responses with accurate, clear, relevant, and organized content greatly improve the chances of a favorable outcome.
The most important thing is to make sure that the connection between the dispute and the compelling evidence is genuine. Trying to finagle compelling evidence to match a reason code is a recipe for disaster.
Beware Compelling Evidence Misuse
Chargeback mitigation firms that use deceptive methods to manipulate or even outright fabricate compelling evidence may be able to boast of higher win rates in the short term. But this sort of compelling evidence misuse bears long term consequences, including potential inquiries and legal action from the Federal Trade Commission (FTC), state attorneys general, and other regulators. These sort of misrepresentations are dangerous and should not be acceptable to merchants. A slightly higher win rate is not worth the consequences of misuse.
Invest In Compelling Evidence Strategies
The most effective use of compelling evidence begins long before any dispute is initiated. Successful representment strategies begin with adopting business practices that allow for the collection of the sort of data that can be used for compelling evidence and organizing that data in such a way that it is easily available when a dispute is initiated. This allows merchants to make better decisions about when to pursue representment and gives them a better chance to win those representments without engaging in the sort of risky tactics that result in regulatory attention or other negative consequences.
Spending the time and effort upfront to build these data collection and organization systems will pay off when cardholders file disputes. Proactively being prepared for the eventuality of chargebacks is always better than waiting until they are filed and responding reactively.
Merchants would also be well served to find a trustworthy partner to help set up and facilitate these organizational systems. MidMetrics brings decades of merchant experience as well as a unique combination of analytics dashboards and a proprietary representment solution, DisputeGenius. Rather than choosing between fully outsourcing representments to a potentially unscrupulous third party or attempting to handle the complexities alone, MidMetrics strikes the right balance between assisting merchants while still giving them the control over their own compelling evidence and dispute letters.
If you plan to attend the MAG conference in Atlanta from September 9th through the 13th, the subject matter experts from MidMetrics will also be there. You can meet with them to learn more about the effective use of compelling evidence and other chargeback mitigation solutions.