What is a chargeback?
A credit back to a cardholder’s account, which occurs when a cardholder informs their credit card issuer, acquiring bank, or the processor that a particular charge was not authorized or that goods or services were not delivered or provided as promised. If a customer alleges the goods or services paid for were not delivered or provided, then the merchant has seven days on average to produce evidence proving the goods or services were delivered or provided or that the cardholder’s account was credited. A high Chargeback history can often times result in a Processor holding funds and, in excessive cases, closing the Merchant Account. Excessive is usually considered to be over 2.5% by a standard Processor using international banks. Typical fees range from USD 25 to 40 per Chargeback.
A. A procedure whereby the credit card issuer reverses all or part of the amount of a credit card sale back to the originating merchant in accordance with Visa and MasterCard regulations. A chargeback is initiated when a cardholder or a cardholder’s bank disputes a charge against the cardholder’s credit card account.
A chargeback, also known as a reversal, occurs when a buyer asks a credit card company to reverse a transaction that has already cleared. A buyer may file a chargeback with his/her card issuer based on credit card association regulations and timeframes. Although a chargeback may appear similar to a PayPal claim, it’s actually a process that is granted to a cardholder by their credit card company and initiated outside of PayPal. In a dispute over a chargeback, the decision is ultimately made by the credit card company and PayPal can’t control the outcome. Two common reasons for reversals or chargebacks are: • A buyer’s credit card number is stolen and used fraudulently. • A buyer makes a purchase, but believes that the seller failed to fulfill their side of the agreement (for example, they did not ship the item, shipped an item that was very different from the seller’s description, or the item was damaged when the buyer received it). All sellers who accept credit card payments run the r
