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Representment is an important step that help merchants dispute a chargeback. This is the only option for merchants to win a dispute if they believe problem lies on customer’s end.
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Representment is an important step that help merchants dispute a chargeback. This is the only option for merchants to win a dispute if they believe problem lies on customer’s end. Chargeback representments give merchants the ability to dispute chargebacks. It has several purposes, including preventing transaction disputes and recouping revenue. If you are a merchant, you must have considered profit versus cost analysis, and certainly you don’t want your profit to decrease. Many merchants accept chargebacks and make their business blacklisted in the eyes of banks. This is where importance of representment is recognized, because most of the time merchants are considered guilty of wronging. You don’t want your business to fail, right? You should understand the representment cycle so that you can make right decision at the right time.
When a customer completes a credit card transaction, the sale is sent to bank to get payment. For some reason if a transaction is disputed, then that sale is considered as chargeback. When merchant files the dispute, the sale goes to the bank for a second review. This process is known as representment of chargeback. Often, there is a limited time associated with a chargeback, and merchants have to respond quickly. When a customer does a friendly fraud, merchant can provide evidence and get rid of chargeback. The process of representing the chargeback require a lot of attention to details. If there isn’t a chargeback specialist in your business then disputes may become a serious problem for you. Representment is important for your business, but it won’t work in your favor if every chargeback ends up going against you.
Cardholder and the bank, both can initiate a chargeback. If they are initiated by banks then they are the result of processing errors. If this type of dispute occurs then acquirer will handle the case without involving merchant. There are certain authorities that lies with the bank so they will do the paperwork and merchant won’t have to be involved.
Except of above case, other type of chargebacks are passed to the merchant. If it is a friendly fraud then merchant can seek representment. Keep in consideration that merchants have a limited amount of time so they need to respond quickly.
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