Chargeback Definition: Reasons and How to Fight Chargebacks

Thursday, August 18th, 2022

You deal with chargebacks, also known as friendly fraud when customers dispute legitimate charges. Let’s see why a chargeback happens and how you can fight it. 

Chargebacks: Definition 

With a chargeback, also called a reversal, customers dispute a charge on their bill instead of contacting the merchant first. In the case of a chargeback, banks withhold or withdraw money from merchant accounts and send a notification about the chargeback.

You should take the right measures to avoid a chargeback. Otherwise, your merchant-account provider may place holds on funds and end your account.

The good news is that you can work with a reliable and experienced payment expert like BestPaymentProviders.co.uk that can help you find the best protection from chargebacks. 

Best Payment Providers UK is dedicated to helping you find the most secure, advanced, and lowest-cost merchant-processing services by focusing on terms, complaints, and integration of payment-processing companies.  

Chargeback Reasons and Your Steps 

There is more than one reason causing customers to file a chargeback. For example, they may not like the product or service shipped or fail to receive the product or service. Another reason has to do with unauthorized credit card transactions. Moreover, duplicate or incorrect billing can also cause a chargeback.

In addition, customers may forget about a recurring payment, misunderstand the delivery date, unknowingly initiate a dispute, believe a chargeback is the very refund, or think filing a chargeback will make things easier. 

How can you prevent and manage a chargeback?

• Provide the necessary details concerning the product or service you offer on your website. Specifically, this refers to exact images and product descriptions. Don’t forget to include your contact information, return, and shipping policy. As a result, your customers will be able to contact you easily if they have a complaint instead of filing a chargeback. 
• Don’t forget about the invoice and shipping details. 
• Pay special attention to transactions with multiple orders for expensive products, strange bulk orders, or many orders placed within a short period. 

What You Should Know About a Chargeback

You face a chargeback when your customer formally disputes a charge without contacting you first. Instead, your customer contacts the credit card issuer. Turn to a reputable payment specialist to protect your business and move it to the next level.