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Did you know? The shipping industry saw a 25% rise in chargebacks in 2023. In response, freight forwarding companies have stepped up their game by implementing better documentation and verification processes, successfully reducing dispute rates from 3.2% to 1.8% of total transactions.

Common Causes and Prevention

Chargebacks in shipping often stem from service disputes, errors in documentation, unauthorized charges, or customers being unhappy with delivery performance. Some common triggers include surprise fees, delays in delivery, claims of damaged cargo, and misunderstandings about service terms. To prevent chargebacks, freight forwarding companies focus on clear pricing, detailed service agreements, proactive communication, and thorough documentation of their services.

Dispute Resolution Process

When it comes to chargeback procedures, companies need to gather solid evidence, such as signed service agreements, delivery confirmations, communication records, and proof that the service was completed. Freight forwarding companies have to respond within strict deadlines (usually between 10 to 30 days) with detailed documentation that backs up the validity of the charge. Keeping thorough records, maintaining clear communication with customers, and responding quickly to disputes can significantly boost success rates.

Technology and Risk Management

Today’s payment systems come equipped with tools to help prevent chargebacks, including transaction monitoring, customer verification, and automated documentation. Freight forwarding companies are adopting comprehensive documentation systems, customer communication platforms, and proactive dispute resolution strategies. Those with strong chargeback management practices report success rates of 60-70% in resolving disputes and enjoy better customer relationships thanks to their transparent approach to handling payment issues.