3 Smart Strategies for Fighting Chargebacks as a Student Loan Doc Prep Business

A chargeback is a major pain in the neck for any business and as a high risk merchant account, you will have to fight chargebacks from time to time.

And if you’re a student loan doc prep company that deals with students who owe a lot after they graduate, the risk for chargebacks are higher and it could lead to huge losses on your end and even make or break your business in the long run.

Originally created as a privilege for consumers to exercise their rights, chargebacks have been highly abused that it’s very important to know how to fight them back and eventually win:

1. Take care of the issue in its early stages.

Most consumers don’t actually file a chargeback the moment they see something wrong with their transaction. The natural first thing they do is to reach out to you to lodge a complaint. When they feel that they’re not being heard by your business, it provokes them to file a chargeback instead.

This is when proactive and efficient customer service can really do wonders for you. Make sure that your customer support contact information is clearly stated on your products and website, and that you have people to answer these complaints so consumers will think twice about pursuing a chargeback, which is actually a hassle for them as it is for you.

If you think that the customer’s complaint is valid, refunding is a better option than a chargeback because you can skip the extra fees and protect your business’ interests.

2. Practice the habit of prompt record keeping.

If you’re going to fight a chargeback and win it, you will need to provide strong evidence to prove that your transaction is legitimate. This is why proper record keeping really matters because it allows you to file documents that could be used to back up your fight against a chargeback.

It’s very important to keep signed receipts, delivery notifications, communication between you and the client, proof that the customer lives in the given address and evidence that the customer has previously transacted with you without any problems.

3. Be quick to respond to a chargeback.

Once a client lodges a chargeback complaint against your student loan doc prep business, you should respond quickly and efficiently within the given time frame depending on the bank or merchant processor involved. Take note of all deadlines and make sure that timelines are met to avoid losing your chance to win the dispute.

Some companies have a chargeback response template prepared just in case they need to deal with such a problem, so it’s easier for them to get paperwork done. You can also have designated personnel to gather all the evidences so you can present them clearly to different panels that will scrutinize your response.

At the end of the day, you actually have some control over chargeback rates. As long as you have solid preventive and response measures in place and your credibility to back you up, you’ll surely have a good chance at winning a dispute and protect your student loan doc prep business against the damages caused by chargebacks.

With the right guidance, you can fight chargebacks and win, contact us at First Card Payments: (877) 441-6801.

Mitch Fardell( Merchant Account Specialist )

Mitchell Fardell is a highly experienced payment processor who has worked for First Card Payments since 2019. In that time, he has worked on large accounts, small accounts, and everything in between.