Chargeback Definition

Merchant Account Chargeback Explained:

What is a Chargeback? A Chargeback occurs when a customer formally disputes a charge by contacting the issuer of the credit card. Customers usually dispute charges if they do not recognize the amount or business making the charge, or if they disagree with the transaction. Merchants can take steps to avoid Chargebacks by ensuring that the proper business name appears on the customers’ statements, providing itemized receipts, implementing fair return policies, and working cordially to resolve disputes before they become Chargebacks. If merchants feel that a Chargeback was unfairly issued, they can fight it by submitting proof that the customer approved the transaction. This can be done with signed receipts, invoices, or other tangible proof of authorization.

Merchants should work to avoid Chargebacks because too many can result in actions by merchant account provider such as placing holds on funds and terminating the account.  Providers may also raise the transaction fees, or even place a merchant on the Terminated Merchant File if the Chargebacks are suspected to be caused by fraud. The typical fee for a chargeback is $25-$35 per incident.

Chargeback Video Explanation

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I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.

From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.

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