Case Study
Restaurant Chain saves $1M+ in Credit Card Chargebacks with Automation
Results
$1M+
$1+ million revenue recovered
Scale
Fully automated low value disputes
Growth
Flagged high-value disputes for expedited handling
Company Profile
NYSE-listed restaurant company, operates a portfolio of differentiated restaurant brands across casual, polished casual, and fine dining segments, with hundreds of thousands of team members in over a thousand restaurants serving hundreds of millions of guests each year in communities across North America.
Challenge
Credit Card Chargeback Abuse
Credit card chargebacks are a cause of significant revenue leakage. In hospitality, chargeback abuse can look like gift card fraud, or customers seeking a “free lunch” by canceling charges after service is rendered.
Credit card companies give vendors very limited time frames to respond to these disputes. Limited accounting resources and diverse locations made keeping on top of merchant chargebacks difficult.
Monitoring internal threats was also a concern. Without proper oversight and auditing, there were instances where employees were found creating faulty chargeback requests and approving them for personal gain.
A centralized plan to prevent revenue loss was needed.
Solution
Custom Automation Development
Working together with the organization’s Automation CoE, WonderBotz developed a custom automation to fit the restaurant chain’s needs. The automation downloads chargeback reports from each merchant processor, including BAMS, Amex, and Discover. It applies business-managed rules to identify which restaurant chargebacks to dispute.
High-value chargebacks are sent to accounting for manual handling. Based on the chargeback reason code, the digital worker gathers supporting evidence for the accounting team such as images of signed slip.
Lower value disputes are fully handled by digital workers. The automation takes the collected evidence and logs into the merchant processor system to dispute the chargeback using the chargeback code. If the disputed charge was for a gift card, the gift card is automatically voided in the gift card admin platform.
Once a result is returned by the payment processor, the automation retrieves and reports on final resolution outcome. Automating the chargeback investigation process recovered $1 million in revenue leakage from credit card chargeback abuse.
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