CNP Expo: Take Charge(Back)

May 20, 2015

CNP Expo: Take Charge(Back) According to experts speaking at a Wednesday session of the CNP Expo in Orlando, chargebacks are the symptom of a bigger problem: not gathering enough information in the early stages of a transaction.

Reducing chargebacks is accomplished by being thorough during the signup process, said Mostafa Beshir, director of revenue accounting operations for Carnival Cruise Line, even though customers often don’t want to give out a great deal of personal information. Merchants also should align chargeback policy with the company vision and do everything they can to try to get customers to call the retailer rather than the bank, said Mike Davis, vice president of sales at

It’s important to develop a strategy to fight chargebacks, rather than contesting each one individually, Beshir said.

“You have to be able to produce good analytical reports and sell your case [to management],” he said. “Explain that chargebacks are just another diagnostic tool that companies fail to look at.”

Friendly fraud, when customers just refuse to pay for or deny they received a product, is expected to grow quickly in the next few years. And, according to Davis, collaboration and education at conferences like the CNP Expo is an important part of that effort.

“Can you fight friendly fraud?” he asked. “Yeah, but it’s going to be difficult if nobody raises a voice in the industry.”

Keeping an eye on security and continuing to research the problem will enable merchants to prepare.