Chargebacks – What are they?
Almost everyone has an idea of how a credit card SALE works. But even some experienced merchants don’t know the other side of the system; chargebacks. Understanding chargebacks can save you a lot of money. If a cardholder believes a charge is not legitimate, or that their expectations weren’t met, they could come to you for a refund. But they have another option; a Chargeback. Here’s how chargebacks work: Regardless of merit, the issuing bank is obligated to investigate complaints from cardholders, including: • You never delivered the goods and services you promised. • The Cardholder never ordered the goods that showed up on their credit card bill. • The Cardholder received the goods and services, but they didn’t meet their expectations, so they want a refund.
