Dealing with 'item not received' disputes is now easier with PayPal Tracking ID. This feature adds tracking information to PayPal transactions, making the resolution process more straightforward.
Dishonest customers are exploiting the system and claiming refunds for goods they've actually received. These false claims, once processed by the issuer and card network, usually result in a chargeback, a cost borne by the platform.
Occasionally, customers even work together with couriers and replace the authentic delivery image with a low-grade, non-compliant one after receiving the items, for example. These malicious actions have led to a rising trend in what's ironically known as ‘refunds-as-a-service.’ It sounds like a plot straight out of a heist movie, yet it’s a reality.
Without compelling evidence on your end, once the consumer files a dispute with their issuer, this claim can quickly turn into a chargeback, affecting your dispute ratio to card networks. What’s more, a lack of clear shipping evidence can also upset the balance with supply chain partners. And digging up tracking and item details is not an easy task if done manually.
One way to tackle friendly fraud and refund abuse head-on is by tightening policies and procedures, particularly for non-deliveries. However, a firm clampdown on policies is rather a reactive step that could also affect the experience of genuine consumers.
For transactions processed using PayPal payment method, you can now provide the tracking numbers of the goods shipped to prevent from having disputes under the ‘goods not received’ reason. As there is proof of shipping, those disputes are automatically closed in your favor - which means no more hassle in trying to investigate the issue further to prove you don’t hold any liability.
The tracking ID and its crucial role in solving disputes
A tracking ID is a unique string - a combination of numbers and letters used to identify a specific order. This ID is generated by the carrier handling the delivery, making it convenient to trace the order and confirm whether it was delivered to the end customer. ‘Goods not received’ disputes can be automatically resolved with proof of delivery through the tracking ID, eliminating the need for manual workload and saving time and effort to trace and reconcile related payments.
Dispute resolution
The integration of tracking information within payment acts as strong evidence, empowering platforms to validate whether an order was delivered fully or if there were any underlying issues during the shipping process. Disputes tagged as ‘goods not received’ can be automatically resolved if there is proof of delivery through the tracking ID. Since there's proof of shipping, these disputes are automatically closed in the platform’s favor. This essentially cuts down the required time and effort to trace and reconcile the related payments, making the process far easier.
Your Customer Success Manager stands by to walk you through the feature so you can learn how to create the shipment tracking, what the accepted values are, and what the workflow looks like.
To find out more about how Mangopay can help you select and connect the products you need to succeed, get in touch with us.
