In today' s business world, systems are set up to protect consumers, not merchants. Most chargeback rules favor the customers who initiate chargebacks, and merchants bear not only the burden of proof, but also the risk losing their money (as well as the goods or services in the underlying sale).

For example, customers have 180 days (six months) to decide if they want to dispute a sale. If merchants lose a chargeback, they not only have to refund the customer's money, but they're also charged an additional fee by their processor.

The following are a few tried-and-true ways that merchants can win more chargebacks.

Fill Out Retrieval Requests Immediately

Let's say a customer gets his credit card statement in the mail and doesn't recognize a charge. The acquirer sends a retrieval request to the merchant and now the merchant must send a copy of the receipt to the customer before the deadline on the request. If the merchant sends the receipt on time, all is well. If he misses the deadline, he automatically loses the chargeback and has to give the customerÕs money back, along with paying the chargeback fee.

This is a non-reversible chargeback. If the merchant is on vacation, or too busy to reply on time, he will lose the dispute.

Keep Receipts Organized

When a merchant receives a retrieval request, the request will contain the transaction date, cardholder number and amount of the transaction. No customer name is listed on the request, and there's no indication of what they purchased. To find the appropriate receipt quickly, merchants need to keep their receipts filed and organized according to date or cardholder number.

Depending on your sales volume, you may prefer to arrange receipts by date or batch. To reduce potential security or fraud problems, be sure to store receipts in a locked cabinet that only authorized personnel can access.

Make Sure Customers Don't Take the Store's Receipt

If a customer initiates a chargeback and you cannot produce the receipt, the merchant will lose the chargeback. Be sure cashiers understand the importance of retaining the store copy, and make sure the receipt is stored according to the guidelines outlined above.

By following these guidelines, you can help reduce the time and cost associated with fighting chargebacks, and shift the burden of chargebacks closer to your favor.