What is a chargeback?
A Chargeback is a reversal of a payment and occurs when a cardholder files a dispute with the financial institution that issued the card. A chargeback differs from a refund or “credit,” which is agreed to and initiated by the merchant. When a chargeback is initiated, the card issuing financial institution will investigate the dispute, and will “charge back” the value of the original transaction directly from the merchant account processor, which is obligated under card network rules to pay the card issuer. The merchant’s processor will then attempt to recover an equal value of the chargeback plus a processing fee from the merchant’s bank account. Chargebacks can be overturned if the merchant can prove the transaction was legitimate, or goods and services have been rendered to a customer claiming otherwise. To protect against chargebacks, merchants should list the DBA their customers are familiar with on the cardholder statements and make sure the customer fully understands the products
A chargeback is a payment dispute initiated by the cardholder with their credit card issuing bank. The amount of the disputed transaction is immediately withdrawn from the Vendors account, and the Vendor can dispute the chargeback with proof of purchase, signature, proof of delivery, etc. A chargeback fee is usually assessed to the merchant on top of the actual transaction. A chargeback is usually generated when a cardholder disputes a transaction because of one of the following criteria: • Non fulfillment of product or Service • Unauthorized purchase • Product/service expectations not met • When a chargeback is generated, the issuing and acquiring banks must research the facts to determine which party is responsible for the transaction.
A chargeback is when a merchant processes a credit card, and after processing it, the merchant’s customer submits to their bank that the merchant’s transaction is was not authorized. Customers can dispute transactions for a number of reasons. Some examples are that the card may have been stolen and used to purchase merchandise, the customer may have been dissatisfied with service or product, or simply that they do not recognize the business information provided on their credit card statement. Should you ever receive correspondence from Innovative Merchant Solutions regarding a chargeback or inquiry on a transaction, please contact us as soon as possible to resolve the issue, as you have a limited amount of time to respond before you are no longer able to dispute it.
A chargeback occurs when a customer disputes a transaction. Unacceptable transactions can be charged back to you. All merchants who accept transactions where the card is not present are encouraged to request an authorisation. Action transactions according to the response code that you receive after obtaining an authorisation. Please note that you need to be aware that getting an authorisation only confirms that the card number is valid and in some cases that there are sufficient funds available in the cardholder’s account. It does not confirm that the person seeking to perform the transaction is the legitimate cardholder. A transaction can still be charged back even if you obtained an authorisation.
A chargeback occurs when a customer tells their credit card company that they did not authorize a purchase that appears on their month-end statement. A chargeback is the reversal of a sales transaction by the customer’s credit card issuer. Chargebacks most often occur when a cardholder disputes a transaction and you, the merchant, cannot provide adequate proof that the transaction to the cardholder’s account is valid. A chargeback can also result from processing errors, authorization issues, and/or any other irregularities. When a purchase is charged back to the merchant, a $20 fee and any fees charged by the customer’s credit card issuer will be deducted from your checking account in addition to the value of the sale. A chargeback is the reversal of an earlier sale, and is initiated by the cardholder and the card issuing bank. A cardholder may dispute a charge for many reasons.
