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Education

worth the purchases they make. When it comes to navi-
gating fraudsters and problem customers, it is important
for retailers to know what they can do to protect them- When asked, 44 percent of
selves, even if it is after the problem shows up.
U.S. consumers participating
Following are tips on what merchants can do to push back in a study said they consider
against fraudulent chargebacks and protect their busi-
nesses. chargebacks to be an
• Document everything: The most important busi- appropriate way to politically
ness practice any business owner can participate in pressure companies.
is maintaining complete records of all business in-
teractions (see https://tinyurl.com/4adu8ejw). The un-
fortunate fact is that not all customers are operating
with your merchants' best interests at heart. Indeed, To ensure that things work in their favor, merchants
quite a few shoppers might be looking to take ad- must be attentive and maintain active communica-
vantage of merchants. Having a clear record of all tion with the financial parties involved. There may
interactions can help combat this. be questions to answer and more evidence to share,
but they need to see it through to prove they de-
While types of documentation can vary, it is im- serve the money they are owed.
portant that merchants maintain active records of
all communications between themselves and their • Know the risks of too many chargebacks—and
customers, a record of every purchase they make, adapt as needed: Chargebacks, particularly fraudu-
and evidence of the deliverables they offer—wheth- lent ones, are a threat to businesses success. Even if
er that is a shipping confirmation on a bar of soap or a merchant is offering services as described, repeat-
a time-stamped digital download. This documenta- ed chargebacks can easily get the merchant flagged
tion is crucial when it comes to navigating the law. as a major risk. Ultimately, this can cause problems
between the merchant and certain platforms or fi-
• Pull the receipts: When all of their documenta- nancial institutions.
tion is in place, merchants can do something cru-
cial when faced with fraudulent chargebacks: pull A business may need to take active steps to thwart
the receipts. Being able to provide documentation potential fraudulent attacks so it can continue to
on the entire interaction is essential for navigating maintain its rank or selling status on certain plat-
chargebacks. Remember, to prove that they did de- forms. These platforms want partners that make
liver as described, they need documentation that them money, and that won't happen if people are
shows this is the case. continuously demanding refunds. Staying up to
date on certain trends related to fraudulent behav-
Merchants suddenly faced with chargebacks will iors can help merchants alter business practices to
want to focus on collecting all of the essential doc- reduce the risks associated with these behaviors.
umentation. Being able to show the inquiring fi-
nancial institution evidence of every aspect of the In a perfect world, a business would sell a quality product,
interaction—and proof of the provided product or and the customer would be satisfied. While this might be
service—can go a long way in helping merchants true for the majority of a merchant's sales, it might not be
ensure that they receive payments they are owed. true for all of them. Knowing how to navigate dishonest
customers with ill intent can help businesses stay ahead
• Contact the financial institution: To dispute a of fraud risks and navigate them more effectively, so help
chargeback, a merchant will need to contact the your merchants stay informed.
financial institutions involved. This means being
prepared to talk with their own bank or service,
as well as the one that issued the chargeback. They Nicholas Cucci is the co-founder and COO of Fluid Pay LLC. Cucci is also
will need to submit what is referred to as a rebuttal a graduate of Benedictine University and a member of the Advisory
letter (see https://tinyurl.com/mkppbsbp). Board and Anti-Fraud Technology Committee for the Association of
Certified Fraud Examiners, as a CFE himself. Fluid Pay is the ONLY 100
A rebuttal letter is a concise letter that demonstrates percent cloud-based Level 1 PCI Payment Gateway processing trans-
why the chargeback is fraudulent. They will want to actions anywhere in the world. Contact Nick at Nick@FluidPay.com.
explain the situation in its entirety and share docu- Benefits of crypto for the underbanked
mented evidence that what the person is claiming
is inaccurate. This will allow them to show that the
problem is the consumer, not them.

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