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Lesson 3
Take the Quiz
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Why is knowing your chargeback rate so important?
Select all that apply.
To ensure your company stays below the danger zone of 0.9% + over 100 chargebacks received in one month - since above that you’ll be entered into Visa’s Dispute Monitoring Program
So that you know how much to pay your fraud analysts
So you know how much loss successful fraud attacks are directly causing your business
It’s the main way to keep score against fraudsters
So you know where to focus your efforts to lower chargebacks
How do you calculate chargeback rate?
Select only one.
(Total # of transactions/total # of chargebacks) * 100)
(Total # of chargebacks/total # of transactions) * 100)
(Total # of chargebacks/total # of transactions) / 100)
Why is it important to separate fraud chargebacks from service chargebacks?
Select only one.
Because fraud chargebacks are the fault of the fraud department and should count against fraud KPIs, which is not true of service chargebacks
So that you can blame Customer Support or Logistics for service chargebacks
The causes for these types of chargebacks are different, and the solutions to reduce future chargebacks are different and often handled by different departments
Why might you not be able to rely on reason codes to give a completely accurate picture of the real reason for a chargeback?
Select all that apply.
Customers do not always tell the truth to the bank
Fraud reason codes are the only ones that don’t require documentation or other evidence to support them, so they can become the easiest default codes
Reason code categories are too broad to be useful
Fraudsters cheat reason codes
Why is it important to bear in mind that time is an important factor in chargeback measurement?
Select all that apply.
To use an excuse for why your company is receiving chargebacks
It can take 2-3 months to receive a chargeback
Time is something that should be included in all graphs reflecting chargeback statistics
When you change something in your system to reduce chargebacks, it may take a few months to fully see the impact
Why might your chargeback rate comfort zone vary over time?
Select all that apply.
Chargeback rate comfort zones are affected by company goals and priorities
Your fraud team might get more or less effective at preventing chargebacks over time
Chargeback rate comfort zone may vary somewhat according to the time of year or business activity
Fraudsters might evolve more sophisticated attacks over time
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