How are chargebacks dealt with?
A chargeback is any payment that is returned to the registrant by the credit card issuing bank. A chargeback occurs when a registrant asks his/her card issuing bank to reverse a payment. The card issuing bank will do the reversal without question for the registrant. This happens with all MOTO (mail order, telephone order) merchants due to the fact that a signature is not available. The registrant usually receives his/her money back immediately leaving the merchant liable for the amount of the transaction. When chargebacks occur the merchant is solely responsible for the return of these funds. A service charge of $25 occurs for each chargeback.
