Creating A Seamless Process To Reduce Holiday Chargebacks


The growth of eCommerce not only increased the number of orders but also returns. After the arrival of the holidays, the retail sector faces the challenge of allocating more staff hours and having everything in place to make sure customers are satisfied. Picking up errors, dealing with duplicate or identical gifts: the arrival of the holidays marks the beginning of the peak season for the retail sector. In a context where e-commerce grew 124% last year, the boom in gift delivery brings with it a large volume of returns. Because of this, most businesses face the challenge of having to reduce holiday chargebacks every year.

The Consumer

Consumers choose to buy products that have flexible return policies, which makes reverse logistics very important. It is essential to be able to return a product purchased on the web and before ordering, it is something that should be easy to do. This is what will build customer loyalty with the brand and make them want to buy again. If the experience of returning the product is not seamless and successful, a customer will likely not want to do business with the company again.

For this reason, it implies a great challenge for retail companies who must prepare in advance to face the increase in their activity both in shipments and returns. Reverse logistics not only entails higher costs, but the return times requested by companies must be taken into account.

Preparing for the Holidays

There are several things that companies can do to reduce holiday chargebacks. These include:

  • An improvement in the buying process by streamlining the staff workflow, possibly using automated systems to avoid human error.
  • Prioritizing how to handle dispute resolution by having the process built into the system. If the cost of the chargeback is less than the hours needed to handle the dispute, then it may not be best to take the first option.
  • Make sure that you include a website URL or a direct contact number on the bill so the customer can make contact immediately. This makes it easier for the customer to identify whether the purchase was made by them.
  • Be sure that you have a smooth business operation and process, so you don’t have too many chargebacks during the holiday.
  • Outsource the process. Let a third party take care of the chargebacks for the holiday. This frees up your time to do more valuable things.
  • Create a process where you can control data collection, allowing you to make adjustments to future business practices.


Now that you have an idea of how to how to reduce credit card chargebacks, it is best to start making changes ahead of all major holidays. This will put you in control and the process should be smoother the next time around.

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