Merchant Guide to Charge back Management Service During Pandemic 

Merchant Guide

Ecommerce practice and customer behavior have experienced a drastic disruption due to the COVID-19 pandemic. Because of this, many merchants need ecommerce chargeback management service advice since a situation like this is not one many were prepared for. Massive cancelations and delayed shipments can only spell distress for a merchant.

Although this is a very wide topic that may need hours of explanation, this condensed guide to ecommerce chargeback management service can help you weather the storm and make the right decisions to cut losses.

Factors Causing Increased Charge backs

Inability to Provide Service or Product: The pandemic has come with many crippling effects that make it hard to fulfill the obligation to the client. This could be because the product is out of stock, flights have been canceled, or even bankruptcy. Some of these failures require that the merchant should refund the client. However note that if the reason for the inability to fulfill an obligation is the result of government orders like shutting the border or closing facilities, you are freed from your obligation to pay chargebacks.

Delayed Delivery: Many shipments are being delayed because flights are in short supply and the labor force of the courier services is greatly reduced. When products take longer than expected to be delivered, many customers believe the merchant has failed to meet their obligation and they file for a chargeback. Sometimes they also feel the product should be free is it is not delivered on time. 

Fraud: With more people making online purchases, fraudsters are busy and they are stealing user information which they use to make purchases. There is an increase in phishing fraud and when customers realize their card has been used illegally, they will demand a refund. There are also cases of friendly fraud that involve a cardholder claiming they did not make the order and demand their money is paid back. Such claims usually require chargeback management experts. 

Rescheduling: A lot of events have been rescheduled to dates when it is believed it will be safer to hold large gatherings. Some clients may not be happy with the new date and will demand refunds. If the customer was not aware of the possibility of rescheduling, then they have a genuine claim, however, if they went ahead and bought a ticket, even after it was communicated that the event could be rescheduled, then the claim is not valid. 

Best Practices to Avoid Charge backs 

Always be Open 

During times of a pandemic, it is best to communicate to the customers beforehand about the possibility of delays in delivery or rescheduling of events. Let them know if the product may be delayed so that they do not file for a refund thinking you failed to deliver on your promise. 

Make Refunds Quickly

When you realize you will not be able to meet your obligation and the fault is yours, do not waste time. Issue a refund even before the client asks for it. 

Issue Refunds to the Original Credit Card

In cases where you have to make a refund, do not offer cash refunds for a payment that was made using a credit card. Issue the refund to the same card that made the payment. This will work as evidence in case a person claims they have not been refunded.

Have an Easy Cancelation Procedure

Many clients will file chargeback because they failed to figure out how to cancel an order. Make sure the procedure is straightforward and always have a clear return policy to prevent disputes. 

Make Use of Fraud Detection Tools

With the increased threat of fraud, you need to keep up to date with the developments in fraud detection and prevention. There are different verification procedures that will prevent fraudulent transactions as well as identify friendly fraud.

When Not to Pay Charge backs 

If the Client Opts not to Use the service: If the client purchases a service but out of their fear decide not to use it, then the merchant has fulfilled their obligation and doesn’t have to make a refund.

The Terms and Conditions Included Cancelation: If the user purchased after agreeing to terms and conditions that included cancelation under certain circumstances, then the user cannot make a legitimate chargeback claim.

When Cancelation is by Government Prohibition: Government regulations can prevent a merchant from fulfilling their obligations and in this case, the merchant doesn’t have to pay charge backs.


With the situations merchants have had to deal with following the coronavirus outbreak, new measures may come in place to deal with charge backs. It is wise for merchants to remain in the know about these procedures or have management services that can help mitigate different situations. You should also review your policies and see if they need to be changed. Remember you should be fair to your customers but do not let unscrupulous people take advantage of that honesty and fairness. Always protect yourself. 


Merchant Guide

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Hi! AJ is the founder and editor of GPF, He is passionate about marketing, trends and business things. Guest Post Feed is an online news, trends and information website that provides meaningful knowledge about business, finance, marketing, lifestyle, and much more.

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