No matter what type of merchant you are or what industry you’re in, there’s one thing that all merchants have in common: the plague of chargebacks. You make a sale. You send the merchandise to the customer. The money is in the bank. You go about your life. But wait? Suddenly, your payment processing company contacts you with a frowny face. That totally legit business transaction that you processed suddenly went awry and now you have to return the money.
Sometimes the customer says there was something wrong with the product. Sometimes the customer claims they never received the merchandise. Sometimes the customer claims that they never made the purchase to begin with. Whatever the reason, banks do very little to protect merchants from unfair or fraudulent chargebacks. While chargebacks are a sad part of mer
Even the most secure payment options can have some minor problems whenever card not present transactions are involved, so it’s important to understand exactly what a chargeback is all about and how your payment processing system can be bolstered to reduce the risk of chargebacks:
What is a chargeback anyway? Chargebacks aren’t the same thing as returns, where the item was delivered to the customer but the customer wasn’t happy with it. Chargebacks occur when the customer believes a fraudulent charge was made with his or credit card number or if the customer placed an order but the item was never delivered.
Who pays for chargebacks? The businesses often end up paying for chargebac