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

Use of this video does not constitute an endorsement of any kind by CardPaymentOptions.com

Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.

Schedule a Consultation with Phillip

No Reviews Yet Leave Your Review Below

Leave a Review

Your email address will not be published. Required fields are marked *