What
is a chargeback?
- by iMerchantNetwork.com
A chargeback
occurs when a customer calls their credit card company
and declines to pay for the product purchased from
the merchant (for whatever reason). Since someone has to pay
for the product, and it’s not the customer, it is charged back
to the merchant to foot the bill.
Note: when applying
for a merchant account, remember to review the chargeback
fee. in the application. It can range as high as $10 - $35
per incident (yes, that is in addition to the amount of the
product
itself
being charged back).
A good rule of
thumb is to credit a customer directly before it gets to
the point of a chargeback. "The customer is always right."
A credit can almost
always be done thru the merchant’s terminal or payment
gateway and requries the
same short amount of time it would take to process a sale.
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