No business likes to lose money. Unfortunately, however, deductions and disputes are a big source of lost revenue.
Eight out of 10 merchants have noted increased cases of “friendly fraud” in the past 3 years, and this may increase more as time goes by. Because of this, it’s critical that your business has a clear way to manage disputes and deal with the growing number of chargebacks.
Disputes and deduction management software can help with this, but you need to be sure to use the right solution for your needs. Here’s how you can choose the best disputes management software for your business.
What is Disputes Management Software?
The purpose of disputes management software is to help reduce and prevent the costs and problems associated with chargebacks.
Chargebacks can lead to lost revenue as well as added fees and overhead that can hinder your business operations. A large portion of chargebacks are fraudulent, so you need to take a proactive approach to deal with them.
Dealing with these chargebacks can be difficult to do manually, so it’s a good idea to use deduction management software to improve the process.
What to Look For in Dispute Management Software
There are several key things you should look for when choosing dispute management software. Here are the main factors that you should consider.
1. SaaS, Hybrid, or Fully-Managed Service
When getting help with dispute management, you need to decide whether you prefer to use software as a service (SaaS) or hire a fully-managed service provider.
SaaS dispute management software is subscription-based software that will help you manage chargebacks on your own.
Alternatively, a fully managed service company will work on your behalf and will handle the entire process for you. There are also hybrid solutions that mix these two types of services.
All of these can be good options for managing chargebacks, but you’ll need to think about how hands-on you want to be and how much you’re willing to pay.
2. Software Costs
It’s also important to consider the costs when managing disputes. Disputing chargebacks on your own will be the cheapest option but will also be the most time-consuming.
On the opposite end of the spectrum, hiring a fully managed service provider to handle chargebacks for you will be more expensive. However, it might be worth it if you prefer to take a hands-off approach.
Many businesses opt for a balance by getting SaaS software that will work to review chargebacks automatically while also managing the disputes manually.
You should also consider what features the dispute management software that you’re considering has. While different dispute management software solutions will do similar things, some will have advanced features that make fraud detection even easier and more effective.
Be sure to look for great workflow management features, integration with other tools and services, address verification service (AVS) features, and credit card verification code features.
If you want to improve deduction and disputes management, using dispute management software can be a great idea. However, be sure that you consider the costs carefully and ensure that the software you choose has the features you need.
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