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Managing chargebacks
A chargeback is the formal process that occurs when a traveler raises a dispute via their issuing bank to request the money back from the merchant of record. Travel Technology Investment Trends research asked payments leaders in travel about the challenges they face when managing chargebacks.
Top challenges when managing chargebacks:
%
Difficulty gathering the evidence we
needed to challenge chargebacks
%
Hard to keep up with the specific card
scheme rules around chargebacks
%
Hard to manage chargebacks when
the sale is made through partners
%
Lack of skilled staff
to manage chargebacks
The top concern was the difficulty travel companies face collating the evidence required to effectively challenge chargebacks (47%). This chimes with research Outpayce carried out last year, which found chargebacks are growing at an annual rate of 30% per annum. This growth is driven by increased traveler awareness of the dispute mechanism and the ease with which chargebacks can now be initiated via mobile banking apps.
For a travel merchant to effectively contest a chargeback it must collate information from a wide variety of sources. For example, can the organization show this passenger actually boarded the plane and therefore received the service? Can collated payments data show the card purchase was authenticated? Doing so, supports the merchant during the formal chargeback process, preventing potentially significant revenue leakage relating to chargebacks.
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