Whatever business you are running or no matter what kind of products you deal in, chargebacks are bound to happen even if you are the most conscientious retailer. Sometimes the sale doesn’t actually take off as planned. What is a chargeback? It is a kind of transaction reversal (forced) by the bank of the cardholder. Chargebacks can be frustrating, even more, when those are false. If you are a consumer, chargeback acts as a shield between you and the dishonest retailer. But, if the two are at odds, it wasn’t intended to be that way. Ethoca chargebacks help businesses of all kinds to prevent this thing from happening.
To understand chargebacks and their working better, let’s have a look at their background. From a distance, chargebacks can seem similar to conventional refunds. There is a difference here: instead of contacting the business for a refund, the consumer asks the bank forcibly to reverse the transaction. Following this, an investigation is initiated, and if the customer’s request is found to be valid, funds are transferred back to the consumer. There is no obligation of the consumer to return the product purchased. The merchants usually know about the incidents after they happen. A chargeback concept is tilted to the side of the consumer for better protection.
Many reasons give rise to the circumstances that lead a bank to transfer money from the merchant’s account to the customer’s. While some of these arise because of the genuine mistakes of a merchant, others are because of the customer’s discretion. A few things that can lead to a transaction being overturned involve:
- Wrong dollar amount request by the merchant on submission of a transaction.
- Accidental procession of transaction many times.
- Inaccurate product description.
- Bought item is out of stock or back-ordered.
- The customer is trying to commit friendly fraud.
The chargebacks, mainly false ones, are a huge drain of money as well as time. To avoid these as much as possible take the help of Ethoca chargebacks, which help to prevent possible fraud. The company ensures that your business has a chargeback management system in place that understands the workings of the process and reduces the possibility of chargebacks happening. There is no way to afford this to become a part of your day-to-day business.