CASE STUDY

Credit repair company reduces Visa® dispute volume by 47.41% with Chargeback

Bank of America Merchant Services has partnered with Chargeback to help merchants lower their dispute ratio, improve their win rate and spend less time managing disputes. With payment processing from Bank of America Merchant Services and Chargeback’s dispute resolution platform and tools, you get a solution that can help prevent post-authorization fraud.1

Situation

A leading credit repair company reduced its Visa dispute volume by 47.41% with dispute management from Chargeback. In the first 30 days alone, the company was able to stop 1,827 Visa disputes from becoming chargebacks. Prior to using Chargeback’s dispute resolution platform and tools, the company was exceeding the acceptable limit for disputes in a period. With Chargeback, the company has moved well below the limit.

Chargeback accomplished this by providing details about the credit repair company including its products, policies and contact information to card issuers when disputes were first initiated by customers. The additional data gives card issuers what they need to deny dispute requests and redirect customers back to the credit repair company to receive a refund.

Results2

In the first month, the company had 3,854 Visa disputes initiated against them, representing $295,780. From those, 2,511 prompted a request for additional information which was a 65.15% usage rate by issuers. Equipped with the additional information, the card issuers deflected 1,827 (72.76%) of those Visa disputes, representing $135,254 in revenue and $20,097 in chargeback fees.

Ultimately, in the first 30 days 2,027 Visa disputes were filed against the company — 1,343 that didn’t participate in dispute deflection with Chargeback and 684 that did. In other words, only 52.59% of the total disputes initiated against them were finalized. The result was a staggering 47.41% net reduction in Visa disputes. Additional benefits from deflected disputes include preventing as much as $70,000 in alert fees and $10,000 in labor. The bottom-line, month one net savings estimate is $235,000.

30-day results using Chargeback automated dispute management
STOPPED
72.76%
of Visa disputes initiated
RETAINED
$135,254
of sales revenue
PROVIDED
$235,000
in estimated savings
GENERATED A
47.41%
reduction in Visa dispute volume

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