Chargebacks are the issues that a merchant faces on a regular basis. Chargebacks are the one which is treated by the expertise and are hence they are cured by them as well. The business should be well treated and the merchant should feed the business accordingly. Chargebacks occur on a regular basis and hence the merchant should be aware of the repeat problems he is facing throughout. Once the chargeback is filed against the merchant from customer the process itself starts. The cycle starts from the customer to the merchant involving the banks itself. Process Includes These Parties The Customer – The customer is a cardholder who purchases from the merchant. There are many reasons for the customer to file a dispute if he sees an unrecognizable transaction or does not recognize the billing descriptor. Each card network guarantees zero-fraud liability to its customers. Issuing Bank – The issuer provides payment cards to the cardholder. Some examples i...
What are Chargebacks ? The chargebacks are disputed transactions, which take place between a merchant and a customer. A chargeback is security, provided to consumers to protect them from unauthorized transactions. A chargeback happens when a cardholder calls his card issuer to dispute a charge on his account. If your customer files a dispute, you’ll get a notice from your acquiring bank that a chargeback is pending. You can either accept it or request it. When a chargeback is received, you will get a chargeback reason code from the issuing the bank that gives a reason for the dispute. How To Manage Chargebacks Some of the preventive measures to manage chargebacks are: • Case Understanding: There should be a proper method to understand the case and strategize to eliminate it in the future. • Merchant Error And Elimination: The merchant error is the biggest culprit in this situation because, if a chargeback has occurred due to the merchant’s error, th...