Manage chargebacks

Implementing a strong dispute prevention strategy helps protect your business from financial losses and maintains a healthy dispute ratio. Here's how you can minimize disputes through various approaches.

Authentication measures

Implement 3D Secure (3DS)

3D Secure adds an extra authentication layer to your checkout process. When a customer makes a payment, they must verify their identity with their card issuer, typically through a one-time password or biometric authentication.

The benefits of using 3DS include:

• Protection against unauthorized transaction disputes.

• Liability shift to the issuing bank for fraud-related disputes.

• Reduced risk of costly chargebacks.

• Lower likelihood of entering dispute monitoring programs.

Important

While 3DS offers significant protection, you may still be liable for non-fraud disputes such as "product not received" or "product not as described."

Transaction screening

Card acceptance policies

Develop clear policies for accepting cards based on:

• Geographic location

• Card types (credit, debit, prepaid)

• Issuing banks

• Historical performance

For international transactions, consider implementing additional verification steps or restrictions for high-risk countries.

Risk-based authentication

Consider implementing a dynamic approach to authentication:

1. Allow trusted customers to check out with minimal friction.

2. Apply stricter verification for:

   1. High-value transactions

   2. New customers

   3. High-risk shipping addresses

   4. Unusual buying patterns

Clear business practices

Transparent pricing and policies

Ensure your website clearly displays:

• Product descriptions and images.

• Pricing details including taxes and fees.

• Shipping costs and timeframes.

• Return and refund policies.

• Terms of service.

• Contact information.

Recognizable billing descriptors

Your billing descriptor appears on customer's credit card statements. Make it easily identifiable by:

1. Using your business name consistently.

2. Adding a phone number or website if space permits.

3. Keeping it simple and memorable.

Best practice

With Xendit, your descriptor comes from the business name you used during registration. Ensure this name is clear and recognizable to your customers.

Communication best practices

Order confirmation

Send detailed order confirmations containing:

• Order number

• Purchase date

• Item descriptions

• Payment amount

• Shipping address

• Estimated delivery date

• Your contact information

Shipping updates

Keep customers informed about their orders:

1. Send tracking information promptly.

2. Provide updates about delays.

3. Alert customers when orders are delivered.

4. Follow up to ensure satisfaction.

Customer service

Maintain strong customer service practices:

• Respond to inquiries within 24 hours.

• Document all customer interactions.

• Address issues promptly.

• Process refunds quickly when warranted.

Responding to disputes

When you receive a dispute, time is critical. Follow these steps to manage the process effectively.

Initial assessment

1. Review the dispute reason.

2. Check if the customer contacted you first.

3. Verify the transaction details.

4. Assess the strength of your case.

Gathering evidence

Different dispute reasons require different types of evidence. Here's what to prepare based on common scenarios:

For physical goods

• Order details and confirmation

• Proof of delivery

• Communications with customer

• Product photos and descriptions

• Return policy acceptance proof

• AVS/CVV verification results

• 3DS authentication records

For digital goods

• Access or download logs

• IP address information

• Device details

• Usage history

• Subscription terms acceptance

• Previous undisputed transactions

• Customer account activity

Submitting your response

When submitting evidence to Xendit:

1. Organize documents clearly.

2. Include all relevant information.

3. Submit within the specified timeframe.

4. Follow up to ensure receipt.

Important

You typically have 30 days to respond to a dispute. Missing this deadline usually results in an automatic loss.

Dispute resolution outcomes

Dispute withdrawal

If a customer agrees to withdraw their dispute, collect:

1. Full name

2. Transaction date

3. Transaction amount

4. Withdrawal reason

5. Scanned ID (KTP)

6. Credit card front scan

7. Bank confirmation

For safety and security reason, advise them to send directly to chargebacks@xendit.co.