Everything about Chargebacks
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Last Update há 7 meses
A chargeback - also known as a reversal- is a transaction dispute sent from a cardholder to their issuing bank. When a cardholder sends this dispute to their bank, they are requesting that the cost of a transaction on their credit statement be refunded to them. This is because they believe the transaction is invalid.
When a buyer disputes a purchase, the credit card company involved reverses the charge, reimbursing the buyer in full and debiting the business’ account. Chargebacks can reduce a business's income, as being liable for multiple chargebacks can be very expensive, time-consuming and even damaging to the business.
Most chargebacks are due to the fact that your customer doesn’t recognize the description on the statement, granted, there are some dishonest people out there but most of the time our chargebacks are from confused people.
When a chargeback occurs, it is the card issuer, not WAAVE, that determines whether a buyer is successful when they pursue a case related to a card-funded transaction. When a chargeback is won in favor of the merchant, they will receive back the amount on hold.
Chargebacks are designed to protect cardholders from fraudulent transactions. This means that the merchants will always be considered guilty in every situation until they can prove there was no fraud involved.
The chargeback resolution process typically involves the following steps:
Notification of the Chargeback: The merchant will receive a notification from the bank or credit card company that a chargeback has been initiated against them.
Investigation: The merchant will need to investigate the chargeback to determine the reason for the dispute. They may need to gather evidence such as proof of delivery, proof of purchase or customer communication to support their case.
Response: The merchant will need to respond to the chargeback within a specified time frame. They will need to provide evidence and documentation to support their case.
Arbitration: If the chargeback cannot be resolved between the merchant and the cardholder, it may need to go through arbitration or mediation. This can be done through the card network or through a third-party resolution service.
Resolution: The chargeback will either be resolved in favor of the merchant or the cardholder. If the chargeback is resolved in favor of the merchant, the funds will be returned to their account. If the chargeback is resolved in favor of the cardholder, the merchant will be liable for the disputed amount.
It is important for merchants to have a clear understanding of the chargeback resolution process and to have policies and procedures in place to minimize the likelihood of chargebacks occurring. This can include providing clear product descriptions, having a transparent refund policy, and maintaining good customer communication.
For further information, you can refer to other articles in our Knowledge Base about Chargebacks: