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Insights and Expertise

Access to data is fundamental to

success in the payments sphere

Addressing them requires precise and actionable in-
sights—something only data can provide. Today, we're
able to exemplify how the aggregation and analysis of
data can mitigate these risks effectively.
By collecting chargeback data from thousands of mer-
chants, we're able to identify patterns and trends across
industries. For instance, detecting spikes in chargebacks
linked to promotional offers or identifying merchants
more susceptible to fraud. This granular understanding
enables merchants and payment processors to take pre-
emptive measures, such as refining fraud prevention sys-
tems or revising return policies, to reduce the likelihood
of disputes.

Access to data also fosters collaboration across the value
chain. Payment processors, acquirers and issuers can
work together to create cohesive strategies informed by
By Roger Alexander shared insights. This collective approach transforms data
Chargebacks911 from being a static resource into a dynamic tool for proac-
tive risk management. Without such access, stakeholders
f artificial intelligence (AI) has been the big tech would remain reactive, addressing chargebacks only after
story of the past two years, then data has been the financial and reputational damage has already occurred.
story of the past two decades. It has been said that
I data is the new oil. If that's so, we're in the middle of Optimizing operational efficiency
the oil rush of the early 20th century, and it is making the
companies that can control the flow of data just as wealthy Efficiency is critical in the fast-paced world of payments,
and powerful as John D. Rockefeller. where delays or errors can disrupt the customer experi-
ence. Data access plays a pivotal role in ensuring seamless
The reason why is easy to see: while oil can power pro- operations by reducing friction and enhancing decision-
ductivity, data optimizes it. Sufficient data, analyzed cor- making processes.
rectly, can vastly improve efficiency in just about every
facet of life. The ability to centralize and analyze chargeback data of-
fers a compelling example. By collating information from
The payments ecosystem is a vast and intricate network disparate sources—merchants, payment gateways, and
where the effective flow of funds depends on the exchange card networks—it provides a single, comprehensive view
of accurate and timely information. Data has emerged as of chargeback activity. This integration eliminates redun-
the backbone of this ecosystem, offering insights that drive dancies and streamlines dispute resolution processes.
operational efficiency, risk mitigation and innovation.
For merchants, this means quicker resolutions and fewer
In this article, I'm going to explore why access to data is resources spent on manually handling disputes. For pay-
indispensable across the payments value chain, using the ment processors, it translates to reduced operational over-
example of how data can be leveraged to address the per- heads and a more predictable workflow.
vasive issue of chargebacks.
Additionally, the insights derived from this data allow
Enabling proactive risk management stakeholders to automate repetitive tasks, such as docu-
ment submission for chargeback rebuttals, further im-
Chargebacks—disputes initiated by consumers to reverse proving efficiency.
transactions—represent a significant challenge within
payments. They result in financial losses, strained rela- Data also enhances communication across the value chain.
tionships and regulatory scrutiny. For example, when merchants are informed about the root
causes of their chargebacks—be it unclear refund policies,

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