3 Chargeback Tips Credit Repair Agencies Never Knew They Needed
Why are chargeback tips for credit repair agencies necessary? Because the industry is booming and it’s about to get a lot bigger. Stock analysts around the world suggest that a new mega trend is forming, and it all centers around millennials and how this generation is entering the market in a powerful way.
Millennials outnumber the baby boomer generation and they are starting to spend. Everyday more millennials are entering the mortgage market, entering the car loan market and they are having kids. This coupled with their mounting student loan debt, makes the millennial generation one of the most indebt and financial dependent generations in history.
And they are going to turn to credit repair businesses sooner or later.
Americans are drowning in debt. As of June 2019, the average credit card debt for every American household has reached to $8,398. That amounts to more than $1.07 trillion in total debt for all 128 million households in the United States.
For most of these people, getting out of debt is close to impossible if done alone. That’s why they come to you, the credit repair agency, to help solve their financial problems. And as they attempt to learn more about their predicament, they may be inclined to contact their financial institution to initiative unfair chargebacks.
Credit repair agencies need to monitor their chargeback volume because the financial unsophisticated millennial generation will be one of their most lucrative and most difficult clienteles to manage.
With that in mind, We have create this page to detail chargeback tips for credit repair agencies.
What is a credit chargeback?
It is said that 29 to 79% of credit reports contain material errors. This means that some of the items charged to a credit card may not accurate, which could lead to a dispute.
A credit chargeback is something that a client can demand from the bank for charges that he didn’t authorize or use.
For instance, if a client received the wrong product or didn’t receive it at all but he was charged for it, he can apply for a chargeback with your help. In the case of credit repair agencies, you may incur chargebacks from clients who feel they have been mislead, or clients who no longer want to pay the fees they owe you.
You can avoid this potential problem in advance. You can learn more about this on our chargeback prevention tip resource page.
What can you do to win these chargebacks?
As a credit repair agency, you have the burden of proof to help your client win his chargeback case. Here are some tips to make sure you deliver on that promise:
- Gather the most compelling evidence.
Although most credit card companies have guidelines for disputes, chargebacks are still evaluated differently for each client. This is why it’s very important to gather the most compelling evidence to give your client the best chance at winning.
Most companies would require a signed copy of the service agreement, order invoices, transaction receipts, communication messages and website checkout page copy.
One of the best ways to dispute a chargeback is to keep good records from start to finish.
- Delegate chargebacks within your team.
A dispute can be lengthy and tedious, which means that if you have 20 chargebacks a month, things will easily get overwhelming if you do everything alone.
To make sure that every chargeback is handled properly, try to delegate disputes within your team. This means that no details will be missed and disputes are fought properly, giving you a better chance at winning.
If you’re still growing your business, you have the option to outsource to a chargeback management company. Although you have to be careful with whom you choose to work with to ensure success.
This I one of the few tips to prevent chargebacks that is just not considered often enough. Have a good team that is well informed. At a minimum, partner with a high risk merchant account that can help you through this process and fight for you.
- Always set expectations with your client.
Let’s face it, not every dispute will be successful because it will all depend on the decision of the bank and its evaluating body.
So, no matter how high your success rate is, you should never make false promises to clients that they will get their chargebacks every time. Setting expectations will make everything smooth and avoid dissatisfaction.
It is possible to win chargeback disputes. Many agencies have done it and so can you. It all boils down to how well you present your defense and how strong your evidences are.
The most invaluable resource in a credit repair agency’s arsenal is a well connected and experienced high risk merchant account processor. For instance, we provide not only counseling and consulting for all of our credit repair clients, but we also fight for our clients. We use both prevention and treatment in our strategy.
Make sure you find a merchant account provider that can offer the same level of service. Beyond any other chargeback tips for credit repair agencies, finding a good processor will save you millions in the long run.
If you have any questions about merchant processing, contact us. We have been servicing the credit repair industry for decades. This is our bread and butter. Our business grows if yours grows. Call us now, with no obligation: firstname.lastname@example.org or call: (877) 441-6801.