The acceleration of AI is tasking merchants to consider leveraging this technology to simplify day-to-day operations. With chargebacks increasing by an estimated 20% every year, combined with the historically manual nature of combating these disputes, it’s no wonder that more and more merchants are investigating how AI can help streamline their chargeback dispute workflow to recover more revenue.
AI in Chargeback Disputes
Adding AI into your chargeback dispute workflow reduces the manual tasks associated with chargebacks while ensuring the quality of your disputes is consistently improving with the latest data.
Merchants can leverage AI across the chargeback process to improve performance, such as:
Improving Dispute Rates by Fighting More Chargebacks
Today, many merchants must prioritize the chargebacks they dispute due to manual limitations — it’s challenging to scale teams to fight the increasing number of chargebacks. As a result, merchants must prioritize disputing only a percentage of their total chargebacks, which leaves money on the table of unfought disputes.
By leveraging AI, merchants can replace historically manual tasks, such as determining if a fraud chargeback is likely first-party fraud and customizing templates based on reason code. This allows their teams to focus on higher-value tasks that improve the quality of the customer experience. As a result, merchants can increase their dispute rates throughout the year, as AI also scales seamlessly when chargeback volume fluctuates during the holiday season.
Increasing Win Rates with Stronger Evidence
AI can also help merchants increase win rates by determining the best evidence to include in a dispute. Most merchants follow network guidance regarding the evidence that would be the most compelling to issuers but do not have the bandwidth to test and improve these representment templates over time.
AI can aid merchants in making incremental improvements by consistently optimizing evidence and templates by type of product, reason code, geography, etc. By allowing the AI model to learn and adapt the templates based on dispute results, merchants can see win rates improve over time with no manual effort.
A Future-Proof Investment
Merchants looking to future-proof their operations should incorporate AI into their dispute process. By leveraging AI, merchants can protect their business from increasing and fluctuating chargebacks while ensuring quality remains high.
Forter’s Chargeback Recovery solution enables merchants to streamline the chargeback process by leveraging automation and AI to resolve disputes intelligently and efficiently. With our network of data, Forter has insights into chargeback, transactional, and order information, as well as cyber intelligence and behavioral data from billions of global customers. Chargeback Recovery harnesses these insights to strengthen the dispute case.
Recently, Forter partnered with Justt.ai. This new partnership and integration extends the use of artificial intelligence (AI) and machine learning to automate one of the most manual aspects of the digital commerce journey to improve win rates and recover lost revenue. To learn more about this partnership, please visit the Justt press release.
