How Does a Chargeback Get Reported?

Chargebacks are the little nasties of business that owners love to hate. The reason for such disdain is that a fair percentage of them are not legitimate. Businesses conduct credit card processing to increase the possibility of more sales. However, with an increase in sales comes an increase in chargebacks. Legitimate customers place chargebacks on their credit cards when they do not receive items that are in good condition. Some of them may also perform a chargeback when an identity thief victimizes them. However, some customers use chargebacks as a means to get products from the merchant without having to make payment.

How Does a Chargeback get Reported?

The chargeback process with credit card processing starts with a customer complaint. The consumer calls the credit card company, tells the customer service representative the problem, and prompts the beginning of an investigation. The credit card company then launches an investigation to gauge the validity of the claim. If the credit card company sides with the customer, it will make a motion to withdraw the funds from the merchant accounts. A business that has a well-established card processing system and a merchant account can be notified of such chargebacks.

Certain merchant accounts have attached features that will allow the account holder access to online management that includes information about chargebacks. Additionally, the person can request that the merchant account provider send a fax in chargeback situations. When trying to run a business, keeping track of occurrences such as chargebacks are important for smooth operations.

Using Chargeback Information to Prevent Chargebacks

To save money in the future, a merchant can deny services to anyone who has placed an illegitimate chargeback. The owner of the business has the right to review chargeback reports and ban customers who try to abuse the system repeatedly.

Another way a company can avoid chargebacks is by using a strict verification system physically and online. If a person walks into the store and wants to use a credit card, the cashier or clerk should verify that person’s identity immediately and make sure the name on the card matches the name on the identification. The individual should also check the expiration dates and security codes.

The right credit card processing software can verify online purchases thoroughly. Such programs can electronically check a person’s credit card and search for the available funds and a name match to legitimize the purchases. This protects merchants from taking repetitive chargeback hits.

Leave a Reply

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.