Skip to main content

Merchant Services: How Much You Know About Chargebacks?




If you have drifted towards merchant services to manage your cash flow, attract more customers, boost the sales, stay in business 24/7, avoid bad checks and accept payments through credit card processing, you must be familiar with the deadly term, ‘chargeback.’ Though it shows its wrath mostly to the high risk businesses, low and medium risk businesses are also under the spotlight if not careful towards the actions.

Even if you have a reliable merchant service provider as your backbone, you must keep yourself updated with chargebacks.

What is a Chargeback?

Chargebacks were created with an aim to protect the customers from frauds & scams. They take place when a disappointed user disputes a particular charge to his/her account. If chargeback is issued for a card that’s either lost or stolen, it is the bank that issues the reversal of funds. Having said that, it is the business that is held responsible for the entire cost of the chargeback.

In case the business is not EMV complaint or does not have a chip reader, it is responsible for the chargeback liability. However, if it is EMV complaint, liability shifts over to the cardholder.

Chargeback process takes weeks to complete. During this time, money from the transaction is held by the bank. The bank asks purchase proof from the merchant and uses it to make ruling on the chargeback.

How to Stay Safe from Chargebacks?

There are certain ways to keep away from chargebacks or refrain from excess penalties. Want to know them? Check out the below given points:

• You must abide by the procedure of credit card processing

• The processing company partnered with, must have robust standards of security and clear payment descriptors

• If you offer services and not products, always have a contract that explains the purpose of the payment, reduces chances of confusion regarding delivery & payment

• Make sure to offer friendly customer service and ask your customers to fix the issues with you before moving to the banks

• Train your employees to check for frauds, as doing this will help to stay safe from chargebacks before any consequences happen

Be Wise When Partnering with Service Providers

As there are many providers, search for best merchant services is not as easy as you think. However, you can get the best assistance and reap maximum benefits by taking out enough time and gathering as much information as possible about your service providing company. When everything seems favorable for your business, collaborate then & there.
Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

Offshore Merchant Account: Why Your Business Need it?

Credit card payments have improved the prominence of many online businesses. If you have an eCommerce site, it will certainly do the same for you too. But then you will require to make certain that the offshore merchant account system you select is protected and secured for any kind of payment transfers. Getting an offshore merchant account would be a prudent thing to do. There are offshore merchant account providers in the market these days who can assist you with this. A business may not be able to run without having a merchant account as it allows the business owners to hassle-free credit card transactions. An offshore merchant account allows you to get away from paying high taxes. It gives you the chance for international trading, whereby offering multicurrency accounts.  Moreover, it also improves the potential of the company. By having installed, you can anticipate acquiring higher sales every month. Also, it decreases the tax liabilities of your business. With this,...
26 comments
Read more

Why Businesses These Days Swear By Online Payment Processing?

If you own a small organization, you must be accepting payments via checks or cash. Though this seems easy and working for you at the moment, the rapid growth of credit card processing will surely affect it later. This is because every business is turning towards online payment processing services and accepting cash or check is reaching the edge of extinction. Well, there’s nothing to feel worried about, as online payments offer a number of advantages to the business as well as its customers. Nowadays, consumers feel more comfortable paying online. Therefore, websites that still don’t allow customers to use credit or debit cards are going out of step. Speed up the process There is no denying the fact that online payment processing is faster and better than manual payment. This is because there is no need to wait for the check to arrive or keeping any eye on it to see whether it’s clear. Right from submitting the payment to updating the bank account takes just a few seconds ...
8 comments
Read more

Electronic Check: An Efficient & Reliable Payment Method

As the trend of online businesses boomed, so did the various payment methods. It was a demand to bring in better fintech to ensure that businesses and customers could safely conduct online transactions without worrying. The reliability of any online payment method depends on its speed, authentication protocol and security. Electronic check is one such digital payment solution. Though eCheck is the modern digital version of centuries old conventional paper checks, it is undoubtedly an efficient payment method since it checks all the right boxes. eChecks are fast, secure, simple and user friendly. Their usefulness comes in when processing high risk transactions or larger amounts. They facilitate absolute mobility and provide users a way of paying anyone from anywhere without any hassle. They are fairly easy to operate since the user only has to fill in minor details and that’s all. They can be authorized over email or even on a recorded phone call. eChecks are also the go to payme...
2 comments
Read more