Today’s businesses must take electronic payments to remain competitive. However, there is always the fear of the dreaded chargeback. These disputes are time-consuming and can drain the company’s resources. Anyone that takes credit card payments needs to have someone in-house that can handle the conflicts. They are troublesome for all merchants, but the small business owner can struggle with disgruntled customers or being part of a fraudulent scam.

Many businesses don’t even bother to fight these chargebacks because they feel they cannot win. Many myths surround this type of fraud, and it’s possible to persevere against electronic disputes. Here are some of the most common myths about chargebacks.

Myth #1: A Company Cannot Win A Chargeback Dispute

Some call chargebacks cyber-shoplifting, and up to 80 percent of these disputes are based on fraud. However, it’s possible to win at least half of all these disputes. Reclaiming lost dollars takes knowledge and perseverance. Working with the credit card company by filling out all the paperwork and responding to deadlines dramatically improves the odds.

Myth #2: The Monthly Charge Back Ratio Will Decrease With Each Win

The chargeback ratio is figured whether a company wins or loses the dispute. Though a winning means that the business gets to maintain the cash, it won’t reduce their overall risk rating. Once a dispute is filed, it goes into the overall company average.

Myth #3: The Business Must Have A Signed Receipt To Win

These days, a signed receipt isn’t always created with each purchase. A company can use many things to help back their evidence. For instance, they can use emails, photographs, and even copies of delivery receipts to show that the cardholder received the merchandise they ordered. Any evidence can help dispute the claim.

Myth #4: There’s No Way To Reduce The ChargeBack Ratio

Many steps can be taken to reduce the chargeback ratio, and it doesn’t mean that a business must decrease their sales. One of the best ways to have customers register their credit card data and validating their information before making a sale. Making valid sales helps fight illegitimate chargebacks that can destroy ratings and cash flow.

Myth #5: Fighting PayPal Disputes Is a Losing Game

PayPal protects both buyers and sellers. They have two classifications for chargebacks. It can be filed as an “Item Not Received,” or it can be filed as “Unauthorized Transactions.” Sellers receive protection for the entire payment amount, and they will also wave any fees involved with the chargeback, if pertinent.

Many chargeback claims are fraudulent, but many claims have solid backings. It’s always best to work with the customer to settle any disputes before a report is filed with the credit card company.