A Brief Look at Chargebacks

A chargeback is simply the overturn procedure of sales where a cardholder deducts the transactions from his visa account and receives a credit over it that makes him free from any financial obligations of the deal.

In this process, a card holder deducts the total amount of a transaction, which will further be deducted from a merchant’s account. However, in case of chargebacks, merchants can face dual drop with transactions and related merchandize.    

     

       

Why Chargebacks Occur?

Reasons like fraud transactions, customer disputes, authorization or processing errors and illegible copy requests are some factors resulting in chargebacks.

Keeping your business transactions literally free from chargebacks is impossible, but with some relative planning the amounts can be reduced or avoided up to a large extent. That’s why, proper processing procedures while transactions with assured details about the cardholder are always recommended.