The bane of businesses today is the dreaded chargeback. Put simply, a chargeback is when the customer tells their issuing bank that a charge on their account is invalid, which results in the bank reversing the charge by giving the customer a credit in the amount of the disputed charge. At the same time, the issuing bank debits the business’ merchant account, which then removes those funds from the merchant’s business itself. Chargebacks are a tremendous hassle for businesses, both in terms of time and money. Even worse is that enough chargebacks can result in the business having their merchant account frozen or terminated altogether. The chargeback is becoming increasingly common in today’s marketplace as most transactions are now done with debit and credit cards over the phone or internet. High risk businesses, such as eBay sellers, are at a greater risk of chargebacks due to the nature of their products, services and areas of operation.
Merchant Processing Advisors is here to help our clients understand some proven methods for chargeback prevention. Our professionals are always happy to go the extra mile and offer solutions so that potential pitfalls in the form of chargebacks are less likely to occur. We will discuss helpful steps, such as displaying your “Terms & Conditions” with a clear refund policy that a high risk business can take to protect themselves. We will connect you with professional third party providers that offer the best software and tangible assistance to mitigate chargebacks if such an occasion arises.
The reality is that in today’s financial climate where online and phone sales are booming, chargebacks will eventually occur. Many of these will be due to some small misunderstanding, but some will be deliberate attempts to fleece the business. Remember that every chargeback costs you money and eats up valuable time, not to mention the accompanying stress. Let the professionals at Merchant Processing Advisors help you navigate and avoid such pitfalls by contacting us today.