Tuesday, 2 June 2020

Chargebacks | What is a credit card Chargeback

Chargebacks | What is a credit card Chargeback
16 Sep
5:33

Hello, this is Ricky with CreditCardTerminalscom and today’s topic is: Chargebacks

What is a credit card chargeback and why is it so important for you understand? Let me explain A chargeback is when a cardholder or customer disputes the credit card transaction through their card issuer So, basically, you run their credit card and the customer later disputes it or tells their credit card company that they never made the purchase or that the charges are un-authorized

Chargebacks are important to understand and manage for two major reasons 1 Too many chargebacks will make your company look fraudulent and will get your merchant account closed or will cause your merchant account provider to place a hold on your funds 2 You don’t get paid

At the point of chargeback, you are treated as guilty until proven innocent The credit card issuer will always take the side of their cardholder by default It will then be up to you, the merchant, to prove that you were authorized to charge your customers card and that the product, service or goods where actually delivered to the customer There are some common mistakes that can increase your chargeback rate One of the most common is not having a business name that properly matches the name of your products or services

So for example, let’s say that you are selling cookies and the credit card statement that the customer receives shows the charge as BCB Enterprises Your customer has no idea who BCB Enterprises is so they immediately think their card information was compromised and they dispute the charge You are then left to jump through hoops in order to keep your money Now, imagine this same scenario but the receipt says Bobs Cookie Bakery instead of BCB Enterprises Having a name like that will clear up much of the confusion and keep you in business

This is just one example but there are many ways to keep your chargebacks low You can learn more about processing and accepting credit cards for your business at CreditCardTerminalscom

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