Improve Chargeback Management ROI

How Midigator Recovers Revenue with Fewer Costs and Higher ROI

What would you think if someone told you it was possible to recover revenue that you’ve unfairly lost to illegitimate chargebacks without lifting a finger or exerting any effort?

What if you were also told that the revenue you’d recover would far exceed the costs you’d put into earning it?

If you think that sounds like a far-fetched claim or an impossible reality, then you don’t want to miss the story Oscar’s Outdoor Odyssey* has to share.

The Story of How a Merchant Recovered More Revenue with Fewer Costs and No Manual Labor

This is the story of how a merchant used Midigator® automation to fight chargebacks more successfully and efficiently.

The Situation

Oscar’s Outdoor Odyssey, an online retailer that sells wilderness survival supplies, was experiencing notable year-over-year sales growth.

Oscar was excited about the influx in revenue but was also overwhelmed by all the day-to-day responsibilities of running a successful business. One area, in particular, where Oscar struggled was chargeback management. This shortcoming was especially worrisome because chargebacks were becoming more and more of an issue as sales increased.

It pained Oscar to lose money to chargebacks. He knew in his gut that a good portion of those transaction disputes were friendly fraud. He really wanted to fight back and recover the lost revenue, but there were so many challenges to overcome:

Chargeback Response Win Rate

24%

Quarterly Revenue Recovery

$5,500

Return on Investment

-26.5%

Client: Mid-Size eCommerce | Q3 2017 Revenue: $1,427,762 | Q3 2017 Chargeback Count: 648

The Takeaway

Oscar was losing almost $8,000 to chargebacks each month. He realized he didn’t have a sustainable business model. As sales increased, chargebacks would increase too.

So, Oscar reached out to Midigator. He was able to easily hand off his chargeback management responsibilities and let Midigator fight on his behalf.

The Outcome

Oscar’s Outdoor Odyssey saw an immediate improvement in their ROI.

ROI Before Midigator

Q3 2017

26.5%

ROI After Midigator

Q4 2017

281%

Total Increase in ROI

Q3 to Q4 2017

↑ 1,163%

ROI improved because of two key factors: revenue recovery increased and costs decreased.

↑ Revenue Recovery Increased

Midigator was able to fight more chargebacks than Oscar could, so there were more opportunities to recover revenue.

Because Midigator knew what to submit and how to submit the chargeback response packages, the cases were more compelling and had a higher win rate.

And because responses were submitted almost instantaneously, Oscar’s Outdoor Odyssey capitalized on every opportunity to recover revenue; there was no risk of cases expiring or revenue being forfeited.

BEFORE Midigator

Q3 2017

Win Rate

24%

Recovered Revenue

$5,500

AFTER Midigator

Q4 2017

Win Rate

81.9%

Recovered Revenue

$18,976

↓ Cost Decreased

Midigator’s technology-enabled pricing was less expensive than the value of Oscar’s time. Also, the technology knew what should and shouldn’t be fought, ensuring resources weren’t wasted on cases that had no chance of winning.

Combined, these elements resulted in a 34.1% decrease in management costs.

Overall Results

Decrease in Management costs

↓ 34.1%

Increase in Revenue Recovery

↑ 241.3%

Total Increase in Management ROI

↑ 1,163%

Oscar learned a very important lesson. Chargebacks are not just a cost of doing business. There are cost-effective ways to fight back against friendly fraud and recover lost revenue.

*Our client requested their actual name remain anonymous.


Do You Want to Recover More Revenue and Achieve a Higher ROI?

If you would like to fight chargebacks and recover revenue with greater success and efficiency, Midigator can help. Our technology provides a completely automated solution--no manual labor or expertise is required.

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Midigator is risk mitigation technology, featuring customized automation and relevant, real-time analytics. By revealing what is happening and why it is happening, Midigator empowers merchants, acquirers, and ISOs with data-driven decisions.

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