While subscription businesses may be vulnerable to friendly fraud chargebacks, they are also equipped with the data and evidence necessary to win these disputes and protect the revenue they’ve collected. Most subscription businesses work hard to cultivate customer relationships, communicate about billing policies, and successfully deliver their goods or services. This means that when a dispute occurs, merchants have plenty of evidence to submit — items like a transaction history of undisputed charges, refund and cancellation processes, and proof of goods or services delivered are all instrumental in creating a successful dispute response.
However, putting together an effective response is only half the battle; subscription merchants need to be able to leverage these responses across their entire dispute volume to be protected from losses. Manual methods of fighting chargebacks are costly — compiling all of the evidence to create a compelling dispute representment is a time and labor-intensive process when done by hand. Manual processes also don’t scale to address business growth or seasonal fluctuations. By investing in technology partnerships and automation, subscription merchants can achieve a scalable and performant chargeback process that addresses 100% of friendly fraud and recovers maximum revenue without inflating costs.
For any business, a subscription billing model can be the key to unlocking growth – but be aware that it can also increase exposure to chargebacks and friendly fraud. In order to maximize revenue and grow successfully, businesses should be sure to make friendly fraud and scalable dispute representment a part of their overall payments strategy