20th January, 2023
Several factors have complicated chargeback management, and since the travel sector tends to face unique challenges, companies have been evaluating their responsibilities as they attempt to boost recovery. This is because chargeback management demands a timely response to any dispute, so avoiding whatever make the process a complicated, costly and time-consuming affair is vital.
Merchants have to consider several aspects from a travel shopper’s perspective. These are – increase in awareness about chargebacks, their rights, widening of payment methods, the simplification of initiating the process, the fraud rate etc.
In its last year’s study, Fraugster mentioned that customers have been using chargebacks as a revenge tool while ignoring its financial impact on merchants.
Improvement
Specialists in this arena along with travel technology companies are trying to work out a way to improve the position of merchants by counting on data, cutting down on manual reviews, staff’s time etc.
In case of airlines, the ones that are handling more directly bookings, they need to be wary of this issue as a research by Chargebacks911 has indicated that shoppers are less likely to initiate chargebacks via intermediaries but are more active when it comes to chargebacks for direct bookings.
Airlines need to ensure they can handle first-hand evidence in a better way to manage the same. Merchants have to be better prepared in terms of needed representment documentation based on a specific industry and bank partner’s best practices, trends that indicate why chargebacks are happening and what is the way to sort them out, adjusting to regulation and technology changes etc.
It is also worth assessing to what extent the travel industry is paving way for greater industry collaboration, including integrated technology systems and data sharing.
An important metric is related to the outcome of challenging a dispute. Studies have indicated that only one-fifth of merchants reported reversing fewer than 10% of chargebacks. According to Chargebacks911, while many merchants are tracking and managing chargebacks in-house, they’re not getting the outcomes they need.
By Ritesh Gupta, Ai Events
