Credit Card Merchant Account Chargebacks

Friday, April 20th, 2018

Are you dealing with chargebacks? Why does your credit card merchant account get huge chargebacks? Are you interested in chargeback disclaimer? How can you easily get approved for the most affordable merchant services? To get answers to your questions, just read this article.

What You Should Know About Chargebacks

A chargeback is a kind of demand – a credit-card provider’s demand for a retailer to make up the loss on a fraudulent or disputed transaction. Are you taking mobile or online payments? If yes, you should be aware of this and have a chargeback prevention strategy in place. Otherwise, you won’t be able to reduce chargebacks occurring.

Sometimes, credit card processing can really be confusing. There’re a number of important things that merchants should be aware of and take into account to fight chargebacks successfully. So, if you’re running an online business, you can’t do without knowing about chargebacks.

Well, let’s start from the beginning. Customers or cardholders apply to banks for credit cards. These banks are called “issuing banks.” Chargeback, also referred to as reversals, begin when cardholders file a complaint concerning fraudulent transactions on their statement. After the cardholder files a dispute, the issuing bank initiates an investigating into the complaint.

If the transaction is found out to be fraudulent, the cardholder will get a refund from the bank. What about the merchant? If the transaction isn’t found to be legitimate, the bank will take back the whole value of the transaction from your account, plus an additional fee. This chargeback fee may vary from $0 to $100. It all depends on the merchant bank sponsoring your account.

If the customer denies a payment illustrated on his/her bank statement or claims he/she haven’t received goods, he/she will be reimbursed immediately by their bank or credit card company. In the UK, this applies to transactions accounting for not more than £100, commonly referred to as the chargeback scheme.

So, if you’re a merchant looking for the best protection from chargebacks, you should turn to a reputable payment processor in the field. The best way out is to work with a payments expert like Best Payment Providers to get approved for the right credit card processing services, including the cheapest merchant services UK.

Best Payment Providers is focused on providing merchants with the best deal for their businesses. With Best Payment Providers, you can enjoy free consultation and reviews contracts, rates, as well as fees. The integration requirements are equally as much important as fees and customer service. So, Best Payment Providers checks each provider’s integration process to be sure you’re enjoying a smooth transition and onboarding process.

What Are the Most Common Reasons for Chargebacks?

Below you can read about the main reasons for chargebacks:

• Fraudulent Transactions

In fact, these are the most common cause of chargebacks. Fraudulent transactions happen when the credit card is used without the cardholder’s authorization and consent.

• Credit Not Posted to an Account

This is one of the common reasons. In this case, the cardholder receives an item that’s different from what he anticipated. Then, he/she requests to get his/her money back but claims credit isn’t posted to the account.

• Item Not Received

This one is among the most common causes of chargebacks. In this case, the customer doesn’t receive the item which he/she has paid for.

• Technical Issues

Technical issues occurring during the payment processes are another reason for chargebacks. Because of technical problems between the issuing bank and the merchant, the cardholder may be charged twice for the same transaction. Problems with the authorization process can also result in chargebacks.

Chargebacks can create headaches for merchants all around the world. In fact, chargeback cases can be won if an honest seller presents the correct evidence. Tough the time and efforts that your business will spend can still be a problem. The best solution to dealing with chargebacks is to take all the necessary steps to avoid them.

For this, you just need to apply to an experienced and reliable credit card processing company that can help you prevent chargebacks successfully. A respectable comparison company can help you find the true professional without challenges.