Why More Customers Are Misusing Chargebacks
Customers who do not understand how chargebacks fully work might unintentionally use the process to get funds returned to them when it might have been better to have contacted the business directly to dispute a transaction or obtain a refund.
What is Chargeback Fraud?
If a customer makes a purchase and then deliberately files a chargeback falsely claiming the product or service was not delivered or received as described, then that is chargeback fraud.
What Do I Do If My Business Gets a Chargeback?
Understanding how your business should respond to a chargeback can be helpful in preparing you for what to do if there is ever a chargeback filed against your business.
Chargebacks, What Your Business Needs to Know
A chargeback occurs when the cardholder contacts their financial institution to request a refund for a transaction, instead of contacting your business to raise a concern. When a cardholder files a chargeback, your business will be debited because of the request to return the funds to the cardholder’s account.