A chargeback, sometimes also called a reversal, is when a consumer asks their credit card issuing bank to reverse funds after a transaction has already been made. This usually happens when a consumer is not satisfied with the quality of a product, or when the transaction was the result of a fraud. The steps are: the consumer calls their card issuing bank and ask them to refund the money spent on a product. Then the bank determines if the cardholder has enough evidence to claim a chargeback. If there is enough evidence, the bank contacts the merchant’s bank, and follows the process to recover the money. A lot of merchants have to deal with this, and it is important they know how to do the proper chargeback management. |
Types of Chargebacks
Consumers usually ask for chargebacks when they find the quality of the product is not what it was promised when they bought it. Another common reason for a chargeback is when the consumer claims he or she did not authorize the transaction; this usually happens due to fraud or identity theft. Also, sometimes there are clerical errors; the consumer is charged the incorrect amount so he or she asks for a reversal.
Why Merchants Must Monitor Chargebacks
It is important merchants have a good chargeback management in order to maintain their account in good standing. Chargebacks usually cause the merchants and their bank to lose money. It is also important merchants are aware of the rules that different banks have regarding chargebacks. Some of the things that can help merchants make the process easier are to keep good records of their sales and products so they have quick access to the information needed to respond to a chargeback. It is also better to always respond fast to chargebacks, and to show you want to solve this matter.
Chargeback.com offers a proprietary software system that keeps CNP credit card processing accounts in good standing with Visa/MasterCard by preventing credit card Chargebacks, protecting against malicious and friendly credit card fraud and helping Merchants become and stay compliant. For more information about chargeback management, Contact us today! (http://www.chargebackguardian.com/our-solutions/chargeback-response-support/)
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