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How Chargeback Management Software Can Help You Fight Payment Disputes

When you sell products or services directly to customers, you risk chargebacks. A chargeback occurs when a customer disputes a purchase and notifies their bank to reverse the charges. If you sell directly to consumers, you’re also at high risk of facing false or fraudulent chargebacks. 

Any chargeback can lead to problems with communications. That is why it’s essential to receive alerts about chargebacks and take care of them immediately. This is more easily done when you have chargeback software in place.

What Is Chargeback Management Software?

Chargeback management software (CBMS) is a tool that helps eCommerce sellers decrease their chargeback rates. It can help you detect, prevent, and fight false chargebacks as well. Use the software to refund money for disputed transactions and to keep your merchant account in good standing. 

The software assists you in identifying the reasons for a transaction dispute, thereby helping you solve issues at the source. It also helps you to better communicate with customers. The best chargeback management tools provide all of the above mentioned features along with end-to-end tracking. This allows you to see the entire process, from an order being placed to the charge being disputed and reversed.

Why Installing CBM Software is So Important

Chargeback management software helps you avoid chargebacks and false claims from customers. This keeps your business from suffering financially.  If a customer files a chargeback against you, CBM software can help you win the dispute. 

Using the software will also prevent you from paying the associated fees. By using a CBMS app, you’ll build a more efficient team as well. With real-time tracking in place, you can see what’s happening with an order each step of the way. This can help you prevent issues before they surface and lead to a transaction dispute.

What Is Typically Involved in a Chargeback Process?

Customers might file a chargeback for a variety of reasons. They might not recognize the company name associated with a purchase, or they might not have received a product or had a problem with delivery. 

Once the chargeback is filed, the bank has a certain amount of time to process the transaction – usually 45 days. The bank will then reverse the original transaction and debit your account. They might also send you a letter informing you of the chargeback. 

How Chargeback Software Can Help You Resolve Disputes

By having a CBM software program in place, you can investigate chargeback disputes and resolve problems efficiently and quickly. 

For example, respond immediately if a customer files a false chargeback against you. Verify the order with the customer. Then ask them to confirm their purchase. This will help you identify the differences between the initial purchase and the dispute. 

When facing a genuine dispute, again, you need to act fast. Assess the situation. Take a look at the dispute and determine if it’s legitimate. If the customer is correct, you might want to offer a partial refund or another form of compensation. 

If the customer is wrong about their claim, once more, respond without delay. Offer a feasible solution and ask the customer to retract the disputed claim.

Why You Need to Include CBM Software for Handling Chargeback Disputes: A Quick Recap

 When you use CBM software, you can quickly reduce chargeback disputes and fight false chargeback claims. You’ll automatically elevate your customer support services at the same time. Having real-time software that tracks data will help you quickly and efficiently respond to chargeback issues. You’ll also be able to win more genuine disputes, which will give you an edge competitively and financially.


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