What is a chargeback?
Chargebacks are the result of a transaction being disputed either by the cardholder or by the card issuer. If a chargeback is processed against your merchant account, you will be debited for the amount of the original sale plus applicable chargeback fees. If you receive a chargeback, and information has been requested, please submit the requested information as soon as possible or by the date indicated on the chargeback notice. The credit card associations only allow a limited amount of time in which to respond. It is necessary that your response be provided by the date indicated on the chargeback notice.
A chargeback is when a consumer claims their card has been charged and the merchant has not delivered the product or performed the service. Your bank processor will notify you if a chargeback occurs and will ask you to provide information about the order. If you do not respond to the chargeback notice or if your bank processor does not accept your explanation, you will be charged a chargeback fee of in addition to the original charge to the consumer. Chargeback fees are usually around $25 and will be stated in your merchant agreement. A chargeback fee is NOT charged when a merchant issues a credit to a consumer.
A charge back occurs when the bank that issued the debit or credit card to a person who bought goods from your business, reverses the transaction, even thought it had previously been cleared. A charge back can happen at any time, sometimes months after the transaction took place and for a number of reasons. Sometimes the shopper claims that they never received the goods, or that the goods were defective in some way.
Occasionally, a cardholder will dispute a charge that appears on his/her monthly bankcard statement and/or it may be discovered that the proper bankcard acceptance and authorization procedures were not followed at the point of sale. If this happens, you will be notified of the dispute and the amount will be debited from your settlement/deposit account.
