What is a Chargeback transaction?
Chargeback is a transaction in which a buyer disputes a purchase made on their credit card directly with the card issuer. This can occur for various reasons, such as fraud, merchant error, or customer dissatisfaction with the purchased product or service.
It is important for merchants to manage these transactions properly to avoid financial losses and protect the reputation of their businesses.
Impact of Chargebacks at Stone.co
Stone faces growing challenges due to rising chargeback rates and decreasing merchants re-presentations, resulting in significant financial losses and an upsurge in support requests.
Understanding the problem
Due to the high number of monthly support tickets being opened, I decided to begin by analyzing them to identify the main pain points our users face in the chargeback process.
The primary issues experienced by users include:
Struggles in effectively managing their transactions involving chargebacks.
Uncertainty about the correct procedure for initiating a representation chargeback.
A lack of transparency and tracking options during the chargeback representation process.
Analyzing current Chargeback metrics
We uncovered a notable deficiency in chargeback re-presentations by merchants users, primarily attributed to the absence of a more streamlined and user-friendly re-presentment option.
Currently, the sole method available for contesting a chargeback is through email. This approach is manual and intricate, dissuading many users from pursuing the re-presentment process.
Analyzing the solutions offered by the market
During benchmarking, a comparative analysis of chargeback management solutions used by Stone key competitors was conducted.
This analysis identified competitor strengths and weaknesses, aligning them with user needs and desires
Proposal for a solution
Simplifying management Chargebacks
Improving the visibility of a Chargeback
Facilitating the re-presentation process.
Testing the solution
To ensure our solution's effectiveness, we conducted usability tests with users most impacted by chargebacks in the past year.
We presented real-life scenarios, analyzed their interactions with our new chargeback section, and identified areas for improvement to enhance the user experience
With the insights from the interviews, we iterated to arrive at a final proposal for handing off to the developers.
Results
These data reflect significant improvements in operational efficiency and cost reduction, indicating greater confidence and security in transactions.