How Chargeback Defense Works

How Chargeback Defense Works

Chargebacks are an unavoidable part of doing business which is why having a solid chargeback defense is of the utmost importance. In some cases, chargebacks are warranted, and there isn’t much a merchant can do about it. But, in many cases, chargebacks are submitted on transactions in which the merchant did everything right and has no responsibility to part with the revenue from the disputed sale — if they file a proper response on time. 

Unfortunately, that’s a big if, because many merchants fail to file proper chargeback responses, losing out on revenue they rightfully earned for one reason or another. And it isn’t just lost revenue — in many cases, the inventory from disputed sales is also never recovered, compounding the loss even further. Finally, too many chargebacks strain a merchant’s relationship with their payment processor and the card companies, potentially leading to higher fees or even outright termination of service. 

With so much at stake, chargeback defense should be a top priority for every merchant and their payment processing partners, and the BAMS chargeback defense program is designed to make managing the dispute response process faster and easier than ever.


Chargeback Defense with BAMS Dispute Assistant Manager

BAMS merchants get free access to an advanced chargeback defense system called Dispute Assistant Manager. While outright avoidance should always be every merchant’s primary chargeback defense strategy, Dispute Assistant Manager is designed to ensure that the inevitable disputes that do come in can be handled more efficiently and more effectively, leading to more wins and less lost revenue. 

The system works by tackling each of the most problematic areas of chargeback response — the initial notification, the evidence collection and submission process, and tracking ongoing cases to make sure they resolve as favorably as possible. 


Chargeback Defense Method: Instant Dispute Notifications

You can’t fight a chargeback you don’t know about. That might sound obvious, but it’s incredible how many merchants lose disputes because they either find out about them too late to file a proper response, or don’t find out about them at all until the money is already gone. 

Dispute Assistant Manager makes missed chargebacks a thing of the past by automatically providing “day zero” email and SMS notifications of new disputes as soon as they happen. If action isn’t taken, follow-up notifications also go out on day one and day three. With such a tight and strict window for response, every day matters, and Dispute Assistant Manager ensures merchants will always have the maximum amount of time possible to mount a strong chargeback defense. 


Chargeback Defense Method: Online Dispute Response

The traditional dispute response process is antiquated and inefficient, making successful chargeback defense extremely time-consuming. Filing a response often means packaging up copies of documents and physically sending them in, or in some cases even faxing documents over — a real headache in an era when many small business owners don’t have fax machines anymore, and some of the younger ones may not even know what a fax is!

Dispute Assistant Manager eliminates all of the headaches and logistical nightmares of chargeback defense, bringing the entire process online and allowing merchants to manage everything from a single point of control. The system tells the merchant exactly what documents need to be submitted for a successful response based on the reason code. Documents can be easily uploaded in digital format and sent directly to the payment processor’s chargeback review team, without ever having to leave Dispute Assistant Manager. The system also provides instant confirmation of delivery, eliminating the need for the merchant to track packages or follow-up to manually confirm delivery.


Chargeback Defense Method: Automatic Status Updates

Once a dispute is submitted, a merchant’s job isn’t always finished because sometimes the payment processor will need more documentation before making a decision. That request for additional documentation will be sent out by the processor, and if the merchant fails to respond in time, the case will be automatically decided in the customer’s favor. 

Dispute Assistant Manager offers an easy-to-use dispute dashboard that enables merchants to keep a close eye on the status of all their ongoing and historical cases. The system also sends out automatic email and SMS notifications whenever a dispute’s status changes, ensuring merchants will always have complete situational awareness over their chargeback defense efforts. 


Chargeback Defense Method: ISO Intervention 

Chargebacks don’t just impact merchants; they impact everyone involved in the payment chain, including processors and independent sales organizations (ISOs.) When a merchant has trouble with chargebacks or fails to file proper responses, it can be extremely frustrating for its partners, who may even see cutting ties as the only option. That isn’t ideal for anyone. 

BAMS Dispute Assistant Manager recognizes that not all merchants will stay on top of their chargebacks even when they have the ability to, and gives ISOs the option to monitor and manage disputes on behalf of merchants to ensure chargeback defense is never neglected. Whether ISOs choose to offer response management as a paid service, or simply intervene when necessary to help their merchants and protect their own reputations, Dispute Assistant Manager represents an extremely valuable tool that benefits everyone involved in a sale, from the merchant on up. 

Chargeback defense through BAMS Dispute Assistant Manager is available to all merchants and independent sales organizations working with BAMS at no additional cost. To find out more about how a BAMS merchant account can help you minimize the impact of disputes and your monthly merchant statement, click here to start your free custom five-point price comparison now.