What are chargebacks, why do chargebacks occur, and what can you do to minimize them?
What is a chargeback?
The chargeback process is designed to help cardholders recover their money in the event of fraud, or when goods and services aren’t received or are deficient in some way. So, if a cardholder finds a transaction on their card statement that they didn’t authorize or buys something that doesn’t get delivered or doesn’t live up to expectations, they can contact their issuer (the bank that issued the card they paid with) and ask for their money back. If the issuer feels the cardholder’s claim has merit, they will initiate the chargeback process and investigate the claim. If the issuer upholds the claim, they will retrieve the payment from the merchant’s account and refund the cardholder.
4 common reasons for chargebacks
There are a number of reasons for chargebacks. Here we look at four of the most common.
1. Customer disputes A customer may dispute a transaction for a number of reasons, such as:
- The goods they ordered didn’t arrive (or weren’t available for pickup)
- The goods received were defective or damaged or didn’t meet the specification
- A service they ordered wasn’t performed as expected
- They didn’t receive a credit they were expecting
2. Fraud A customer may report a transaction to their issuer as fraud when they believe it to have been made by someone using their payment details illegitimately. Sometimes a transaction reported as fraud may in fact be genuine. For example, the cardholder may not recognize the transaction because the merchant name on the statement is unclear or confusing. Or it may be a case of friendly fraud (or first-party fraud). Chargeback examples that could be categorized as friendly fraud include:
- A customer choosing the chargeback process over the merchant’s own return or refund policy
- Buyer’s remorse—a customer receives the goods but regrets the purchase, so pursues a chargeback claiming non-delivery
- The customer forgot to cancel a subscription with recurring payments, so pursues a chargeback to get their money back
3. Processing errors A merchant may make a mistake in processing a payment transaction. For example, they may accept an expired payment card or fail to get a card imprint (electronic or manual).
4. Authorization issues Authorization issues typically occur when a merchant attempts to circumvent or override a declined authorization. Effectively, the issuer receives a transaction for which authorization either wasn’t obtained, or was obtained using invalid or incorrect transaction data.
Best-practice recommendations to minimize chargebacks
Gathering evidence to counter a chargeback can be complex and time consuming for merchants, who also have to pay a fee for every chargeback issued—even those that are later canceled. In addition, merchants with high chargeback rates could be fined or may even have their merchant accounts closed. It’s probably not realistic to think you can avoid chargebacks completely, but you’ll want to minimize them to reduce the associated cost and effort and protect your business. Our key best-practice recommendations are as follows.
1. Avoid mistakes Many chargebacks result from avoidable mistakes. To cut down on mistakes, follow card acceptance guidelines closely and ensure employees who process transactions are properly trained.
2. Choose reliable systems For in-person (card-present) transactions, use a trustworthy point of sale system. For eCommerce (card-not-present) transactions, use a reliable payment gateway.
3. Have robust refund and return policies If your refund and return policies are fair, robust and easy to understand, customers are less likely to get frustrated and go the chargeback route. If a customer with a valid dispute contacts you directly, it’s generally better to act promptly and resolve the situation by issuing a credit, to prevent an unnecessary chargeback.
4. Protect against fraud Your fraud management strategy should incorporate a range of tools and filters, including CVV verification, address verification (AVS) and order velocity among the basics. Consider choosing a POS or payment gateway provider that includes fraud prevention and detection tools as part of the service. If you take card payments taken over the phone, have customers provide all the card details—including expiration date and CVV code.
Hello! Do you know if they make any plugins to assist with SEO?
I’m trying to get my website to rank for some targeted keywords but I’m not
seeing very good success. If you know of any please share.
Many thanks! I saw similar text here: Bij nl
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.
kamagra gel: Kamagra Oral Jelly pas cher – Acheter Kamagra site fiable
kamagra gel: kamagra gel – achat kamagra
kamagra 100mg prix: acheter kamagra site fiable – achat kamagra
Achat Cialis en ligne fiable: cialis prix – Pharmacie en ligne Cialis sans ordonnance tadalmed.shop
Cialis en ligne: Tadalafil 20 mg prix en pharmacie – Cialis sans ordonnance 24h tadalmed.shop
Kamagra Commander maintenant: Kamagra pharmacie en ligne – acheter kamagra site fiable
cialis sans ordonnance: Acheter Cialis 20 mg pas cher – Cialis sans ordonnance 24h tadalmed.shop
Cialis sans ordonnance pas cher: Acheter Cialis – cialis sans ordonnance tadalmed.shop
vente de mГ©dicament en ligne: pharmacie en ligne sans ordonnance – pharmacie en ligne france livraison internationale pharmafst.com
kamagra en ligne: Kamagra Commander maintenant – kamagra pas cher
kamagra en ligne: Acheter Kamagra site fiable – Kamagra Commander maintenant
acheter kamagra site fiable: Kamagra Commander maintenant – kamagra oral jelly
Cialis generique prix: Cialis sans ordonnance pas cher – Acheter Cialis tadalmed.shop
pharmacies en ligne certifiГ©es: pharmacie en ligne pas cher – Achat mГ©dicament en ligne fiable pharmafst.com
pharmacie en ligne france pas cher: Pharmacies en ligne certifiees – Pharmacie sans ordonnance pharmafst.com
indian pharmacy online shopping: indian pharmacy online – top online pharmacy india
mexico drug stores pharmacies: mexico drug stores pharmacies – Rx Express Mexico
mexican online pharmacy: pharmacies in mexico that ship to usa – mexico pharmacies prescription drugs
my canadian pharmacy reviews: Express Rx Canada – vipps canadian pharmacy
best canadian pharmacy: Canadian pharmacy shipping to USA – canadian pharmacy tampa
mexico pharmacies prescription drugs [url=https://rxexpressmexico.com/#]mexican rx online[/url] Rx Express Mexico
best canadian online pharmacy: Generic drugs from Canada – canada discount pharmacy
legitimate canadian pharmacy online: ExpressRxCanada – safe canadian pharmacy
canada ed drugs: Buy medicine from Canada – canadian pharmacy world
adderall canadian pharmacy [url=https://expressrxcanada.shop/#]Buy medicine from Canada[/url] pharmacy canadian
pharmacy website india: medicine courier from India to USA – Medicine From India
indian pharmacy online: medicine courier from India to USA – indian pharmacy online shopping
mexico pharmacy order online [url=https://rxexpressmexico.shop/#]Rx Express Mexico[/url] mexican online pharmacy
buy prescription drugs from canada cheap: Buy medicine from Canada – reputable canadian online pharmacies
thecanadianpharmacy: Generic drugs from Canada – canada rx pharmacy world
buy canadian drugs [url=https://expressrxcanada.shop/#]Buy medicine from Canada[/url] escrow pharmacy canada
вавада зеркало: вавада – vavada вход
пин ап казино: pin up вход – пин ап вход
продажа аккаунтов соцсетей площадка для продажи аккаунтов
купить аккаунт с прокачкой https://marketplace-akkauntov-top.ru/
пинап казино: пин ап казино – пинап казино
безопасная сделка аккаунтов https://magazin-akkauntov-online.ru/
купить аккаунт https://ploshadka-prodazha-akkauntov.ru/
pin up casino: pinup az – pin-up
пин ап казино официальный сайт: пинап казино – pin up вход
заработок на аккаунтах https://prodat-akkaunt-online.ru/
магазин аккаунтов социальных сетей маркетплейс аккаунтов соцсетей
профиль с подписчиками услуги по продаже аккаунтов
вавада зеркало: вавада казино – vavada вход
vavada: vavada casino – вавада официальный сайт
пин ап зеркало: пин ап казино – пинап казино
pin up: pin up az – pin up azerbaycan
Account Trading Service Account Buying Platform
Guaranteed Accounts Buy and Sell Accounts
Account exchange Buy Pre-made Account
Buy Account Account Sale
pin up az: pin-up casino giris – pin-up
Account exchange Secure Account Purchasing Platform
Buy accounts Account marketplace
Account Trading Secure Account Purchasing Platform
pin up: pin-up – pin up casino
Ready-Made Accounts for Sale Buy accounts
пин ап зеркало: пинап казино – пинап казино
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.
Accounts market Account Buying Platform
Secure Account Purchasing Platform Account Catalog
pin up вход: пин ап вход – pin up вход
Ready-Made Accounts for Sale Account Selling Platform
пин ап вход: пин ап казино – пин ап вход
pin up casino: pin up casino – pin up
find accounts for sale buy accounts
secure account sales sell account
account sale sell account
пин ап вход: пин ап казино официальный сайт – пин ап вход
accounts for sale find accounts for sale
пин ап зеркало: пин ап вход – пин ап вход
вавада официальный сайт: вавада казино – vavada casino
вавада зеркало: vavada casino – vavada casino
accounts marketplace sell pre-made account
buy pre-made account sell accounts
account trading service find accounts for sale
secure account purchasing platform account trading platform
pin up: pin up azerbaycan – pin-up casino giris
account exchange online account store
secure account sales ready-made accounts for sale
pin up az: pin up casino – pin-up
account buying platform accounts-marketplace.org
account sale buy accounts
accounts for sale website for selling accounts
account buying service database of accounts for sale
account market account selling service
verified accounts for sale account catalog
ready-made accounts for sale verified accounts for sale
пин ап вход: пин ап зеркало – пинап казино
pin up вход: пин ап казино – pin up вход
account selling service online account store
social media account marketplace buy and sell accounts
account acquisition secure account sales
пинап казино: пин ап казино официальный сайт – pin up вход
buy accounts https://marketplace-social-accounts.org/
пин ап вход: пинап казино – pin up вход
account exchange website for buying accounts
marketplace for ready-made accounts account store
website for selling accounts find accounts for sale
find accounts for sale online account store
account trading platform account store
secure account sales social media account marketplace
buy and sell accounts guaranteed accounts