Handling Chargeback Representment In-House Vs. Outsourcing

If you have decided to take control of chargebacks, you might ask yourself, “Do I have the resources to handle representment myself or should I outsource?”

While you certainly can have your in-house team handle chargeback representment, it doesn’t always mean you should. It can take a lot of time and resources to effectively fight chargebacks. Consider weighing the pros and cons to each method before deciding for yourself.

In-House Representment: The Pros

One of the biggest pros of in-house representment is the associated cost savings. You don’t have to worry about paying an outside vendor fees for processing your chargebacks. You will also have more direct oversight of your chargeback representment efforts.

In addition, your team will be most familiar with your internal process and financials, which alleviates any time you’d otherwise have to spend getting an outside vendor up-to-speed.

In-House Representment: The Cons

Although you might avoid paying outsourcing fees by using an in-house team, you have to consider how far you can stretch your resources. Will you have to hire additional team members or add to the responsibilities of your current team?

Another factor to consider is the complex, constantly evolving terms of the credit industry. Although your team may be educated on the current chargeback process, it could change in just a few short months. If you’re going with the in-house option, you’ll also have to make efforts to ensure your team members receive the constant training they need to abide by current industry standards and the various credit card providers.

Outsourcing: The Pros

There are a number of positives to using an outside vendor to help you manage chargebacks. For one, you won’t have to worry about stretching your existing resources. You can have peace of mind knowing someone is working for you and completely focused on increasing your number of successful chargeback reversals.

Another positive to outsourcing is the expertise you are able to tap into. These vendors specialize in chargeback representment, and know the ins and outs of what it takes to fight for reversals. They are familiar with the jargon and complexities within the credit industry, and can use their expertise to help you improve your chargeback win rate and your bottom line.

Outsourcing: The Cons

The most obvious con businesses will cite for not outsourcing is the cost. But consider this: If a vendor can help you improve your chargeback reversal rate without exhausting your own resources, does the payout become worth the price?

If your in-house team is struggling with successful chargeback representment, you could be losing money anyways. Plus, consider the cost of hiring salaried workers or paying overtime for current employees that might be needed if you undertake chargeback representment yourself. Although there might be upfront costs with outsourcing, it could save you time, energy and resources in the long run.

In the end, it’s up to you to decide whether handling chargeback representing in-house or outsourcing will work best for your business. Considering the pros and cons of each method will help you make the right decision.