If your business accepts credit cards, sooner or later you’re going to face the dreaded chargeback. Chargebacks can be a significant source of revenue loss–so make sure you understand what they are, and how you can fight back.
When a consumer disputes a credit card charge, the credit card issuer investigates the complaint. If they find in favor of the consumer, the transaction is reversed and the funds are withdrawn from the merchant’s bank account and credited back to the cardholder. The merchant not only loses the funds from the original transactions–they’re also charged additional fees for the chargeback and retrieval request.
Chargebacks aren’t all bad. A big reason people use their credit cards for online and phone purchases is because they know the credit card issuer will protect them. If they don’t receive what was ordered or expected and the merchant won’t correct the problem, they can dispute the charge and get their money back. If it weren’t for chargebacks, merchants would have a much harder time convincing people to buy things online!
Instabill knows that not all chargebacks are legitimate. Chargeback fraud can hit your business hard, so our risk assessment department has put together a list of 6 ways to fight chargeback fraud:
Instabill’s gateway is equipped with AVS and accepts orders with CVC codes to help you reduce chargebacks. The Instabill team is always working on new ways to assist and protect the merchants that we partner with.