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Fighting Credit Card Chargebacks
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To avoid the detrimental effect or impact of chargebacks on a business, many business owners are in search of an effective solution. Unfortunately, they seem not to find any. But by reading this article you will be enlightened on what you need to know about resolving such problems in the briefest of ways. If you are aspiring to own a business and you are new to the term “chargeback” this article will give you more than a basic idea of what it entails.
To avoid the detrimental effect or impact of chargebacks on a business, many business owners are in search of an effective solution. Unfortunately, they seem not to find any. But by reading this article you will be enlightened on what you need to know about resolving such problems in the briefest of ways. If you are aspiring to own a business and you are new to the term “chargeback” this article will give you more than a basic idea of what it entails.
What Is a Chargeback?
A Chargeback is a fraudulent act that occurs when a merchant charges a credit card for a transaction, which is followed by a dispute by the cardholder. The effect of chargeback may either affect the cardholder or the merchant involved in the transaction. The cardholder might be a victim of a fraudulent act but it affects mostly the merchants in businesses. How does this occur? The customer files for a chargeback after the conclusion of a business in which the customer did a payment transaction to the merchant. Once this occurs the merchant will lose the money from the transaction.
Causes Of Chargebacks
Although there are various causes of chargebacks, in the business world it is primarily due to friendly fraud. What is a friendly fraud all about? A friend fraud occurs when the customer requests a chargeback after receiving the products or services they purchase. In simpler terms a friendly fraud can occur as a result of the following scenarios or reasons.
– Displeased with products and services
– When the return policy is unclear
– If the merchant name is not recognized by the customer
How To Fight A Credit Card Chargeback Without Losing Your Money
Generally, most chargebacks are always due to the customer trying to outsmart the merchant fraudulently. Hence, you must not assume or speculate that all chargebacks are valid. Instead, you should take the right step that was unknown to you earlier before you started reading this article. There are various advisable steps to take to increase your probability of winning rather than losing your money and products at the same time.
Contact the customer directly
There are times when chargebacks occur when the customer does not recognize the merchant’s name. Sometimes the customer’s family member would be behind the purchase. Hence, it is always advisable to contact the customer directly to find out if there is any confusion or issue that is responsible for their action and how to resolve it amicably.
Act Quickly, Waste No Time
When it comes to winning a chargeback dispute, time is of the essence and it also determines your chance of winning or losing. Although time is of the essence and it is requisite, you should be patient enough to avoid missing important documents.
Have the right documentation ready
This is one of the significant factors that play a large role in winning a chargeback dispute. Once you provide the right document that proves that the customer received the product from the bank, you are certainly going to have your money back.
