LFP209 – Making Chargebacks Work For You Whether Consumer, Retailer or Bank/Fintech w/Monica Eaton CEO Chargebacks911

Chargebacks – the ability to retrieve your money from your bank spent when spent via a card in case of dissatisfaction after a purchase and an inability to resolve the situation with the seller – are one of those rare items that affects everyone from consumer through to merchant and including naturally the financial system in between. As we shall here they are super-complicated in reality.

Monica Eaton first came across the challenge of chargebacks way back in 2008 when she had an online retail business but was naive about them and learned the hard way. However she resolved to understand the situation better and conducted extensive research into why she had been suffering from so many chargebacks which led to a website labeling over 100 reasons for them that retailers might be able to avoid, The Force was definitely with her as within a very short space of time major media outlets and retailers wanted to know more and interview/consult with her. Fast forward to today and the company she founded to take this further – Chargebacks911 – now has some 400 staff in four offices around the world and have successfully protected over 10 billion online transactions recovering an astonishing $1bn+ for their clients.

Topics discussed include:

  • cool in Seattle, steamy in Tampa and hot in London
  • chargebacks as the Achilles heel of her retail business
  • the absence of any useful Google search on the matter back in the day
  • what is a chargeback and how they work – they can be don months if not a year later
  • Monica’s research found that she was most at fault for the chargebacks
  • learning from the experience by contacting every chargebacking customer and ending up with 106 different reasons
  • accidental chargebacks
  • contesting chargebacks
  • how Monica’s website on chargebacks went viral
  • now offices in US, UK, India, Singapore
  • they have customers in all parts of FS as well as retailers
  • making chargebacks work well for you qua consumer – what is Monica’s advice?
  • make claims early rather than waiting
  • protection against misrepresentation, no-delivery and many other circs
  • finding the right type of card and right bank up front to ensure any claim will be dealt with well
  • fraud and over-claiming – how the industry manages this
  • how protections work with bank-branded major-scheme credit cards – two layers of protection
  • some differences between different schemes and various use cases
  • the multi-dimensional nature of assessing cards properly
  • UK Section 75
  • for retailers – chargebacks are a growing problem with some 20% yoy growth
  • an ecommerce transaction is 50x more likely to turn into a chargeback than a cardholder present transaction
  • making this process digital turning it into actionable data esp. in a world where the rules are always changing
  • the importance for a retailer for challenging chargebacks
  • 50% of consumers who file a chargeback will do it again within 60days if the chargeback is not contested
  • for Fintechs/Banks – dealing with the huge complexity of changing scheme rules, regions et al
  • a huge challenge that needs technology to sort it efficiently
  • what the future holds…
  • tensions of reducing the numbers yet wanting to make purchasing more frictionless
  • improving ones chargeback performance in a digital world
  • shoutouts for Chargebacks911 services and products – including some alt payment mechanisms
  • a parallel product is FI911.com – dispute processing for banks
  • shoutouts for more employees esp in Singapore and Brazil

And much much more 🙂

Share and enjoy!