Excessive chargebacks can hurt a business's profitability. Litle & Co.'s Merchant Services Group is expert in helping merchants manage chargebacks through developing a chargeback strategy, analyzing reason codes for chargebacks, and meshing chargeback mitigation with marketing efforts. Their tools, experience, and knowledge can help merchants reduce or eliminate chargebacks.

1. Excessive chargebacks can ruin your profitability.
We can help.
MANAGING CHARGEBACKS
TOOLS, EXPERIENCE AND KNOWLEDGE
Chargebacks are an unfortunate fact of life for card-not-present merchants. Many merchants
spend substantial amounts of time and money trying to reduce or eliminate them. Typically,
KEY BENEFITS OF WORKING merchants employ a wide assortment of chargeback mitigation tools and methods—often
WITH LITLE & CO. overlooking some of the best options, and proceeding without a comprehensive plan of attack.
1. Proactive Merchant Services But there is a better way. A more efficient way.
We constantly monitor your
activity to identify ways to help Litle & Co.’s Merchant Services Group is expert in helping merchants manage chargebacks.
you lift sales, lower costs and avoid We review your chargeback history, take the time to analyze your specific situation, evaluate
problems. all the tools that are available, and help you come up with a comprehensive chargeback
management plan.
2. Reporting that works
Reconcile quickly. Investigate THREE KEYS TO SUCCESS
deeply. All the data you need, when There are three keys to successful chargeback management.
you need it, in a format that makes
life easy for you. Our payment 1. Develop a chargeback strategy.
processing reports do all that work Although some merchants are successful in virtually eliminating chargebacks, it’s not always
for you. a wise economic decision. For example, higher chargebacks may result from better marketing
response rates. You need to take a strategic view of chargebacks in order to determine the
3. The best options in alternative ‘right’ level for you. Some things to consider include:
payments • Are you dealing in a high-fraud or high-chargeback product category?
We support the alternative payment • How do chargebacks impact the lifetime value of your customers?
options that you need to offer to • What is the true cost of each chargeback?
your customers. From PayPal to
2. Analyze the reason codes.
Bill-Me-Later to eChecks, to
Litle & Co. will help you build a custom solution for your chargeback problem, but before we
installment billing; we make the
do so, we need to know why chargebacks occur. This requires a thorough analysis of the
‘best of the best’ payment options
reason codes that are assigned by Visa and MasterCard to each chargeback and the issuing
available to you.
banks from which your chargebacks are coming.
4. Streamline your internal operations
Once we know the reasons for your chargebacks, we can help you deploy the optimal set of
We’ll make life easier for your
management tools. For a list of some of the tools that are available, see the reverse side of this page.
operations staff by allowing them to:
• Get rid of your payments gateway. 3. Mesh with marketing.
It’s unnecessary, expensive and
Chargebacks can often be driven by decisions made in your marketing department. For
unreliable.
example, the decision to alter your refund policy, or the decision to market aggressively
• Eliminate the paperwork outside of your core customer demographic can lead to higher chargebacks.
associated with errors handling
• Automate chargebacks If you’re facing these kinds of challenges, then Litle & Co.’s online reports will help you monitor
the chargebacks created by individual marketing programs and predict how changes in
your business model will impact chargebacks.
LITLE.COM Litle & Co. | 900 Chelmsford Street | Lowell, MA 01851 | 1-800-548-5326

2. CHARGEBACK MANAGEMENT TOOLS
Conventional wisdom in the Payments Industry suggests that you should implement certain chargeback reduction methods
automatically if you have chargeback problems.
Unfortunately, a simple mechanical implementation of these methods may not help—in fact, they could make matters worse
by lowering your sales.
Before you undertake a chargeback management program, you should seek expert advice about all of the tools that are
available, which ones are most likely to benefit you, and the best way to implement those right for you.
Contact the Litle & Co. Merchant Services Group for guidance and help.
Common Chargeback Reasons
CUSTOMER DOES CANCELLED RECURRING NON-RECEIPT OF FRAUDULENT
PREVENTATIVE MEASURE NOT RECOGNIZE TRANSACTION MERCHANDISE TRANSACTIONS
Use Address Verification Service (AVS) P P
Require consumers to provide Card Security Code
(CVV2, CVC2, or CID) P
Ship only to addresses with AVS match P P
Use clear and detailed billing descriptors P P P
Post your refund policy prominently P P
Have an accommodative refund policy P P
Notify customers via e-mail when product ships P P P P
Provide online order status with tracking numbers P
Obtain evidence of delivery (signature service) P P
Use Verified by Visa and MasterCard Secure Code P
Use clear and detailed billing descriptors P P
Make sure that your product or service is
described accurately P
Proactive use of customer service contact
with customers P
LITLE.COM Litle & Co. | 900 Chelmsford Street | Lowell, MA 01851 | 1-800-548-5326