08/10/2023

Chargeback Types & Prevention Tips

Insights from i3 Merchant Solutions

Disputes with customers are no fun especially when it comes to chargebacks. Merchants should know the basics of the chargeback process, what typically causes them, and steps to prevent them from happening.

What is a Chargeback?

A chargeback is a payment dispute that occurs when a cardholder questions a transaction and asks their card-issuing bank to reverse the charge. The ability to dispute a payment is meant to protect consumers from unauthorized transactions, but it can mean big headaches for merchants, especially when the payment dispute is issued in error.

The disputed funds are then held from the business until the card issuer sorts things out and decides what to do. If a bank rules against a merchant, those funds are returned to the customer. If the bank rules in the merchant’s favor, they will send the disputed funds back to you. Unfortunately, this can be a complicated and time-consuming process involving a lot of paperwork and documentation.

Please select this link to read the complete blog post from OSAP member i3 Merchant Solutions.