The first rule to run a successful and balanced business is to
catch the chargeback before it goals our business profit. Navigating the
chargeback process is painful and time-consuming for any merchant.
All chargeback disputes begin when a cardholder files a dispute on
a transaction with their issuing bank. Visa gives issuing banks up to good 30
days to review. If valid, they would then forward it to the merchant’s
acquiring bank or payment processor, who notifies the merchant.
Chargeback, if you may not know is a return of funds into the
buyer’s bank account, a line of credit or credit card.
Know The Process
Know the parties involved in this.
1. The Customer
2.Issuing Bank
3.Card Network
4.Acquiring Bank
5.Merchant Account Processor
6.Merchant’s Commercial Bank Account
7.The Merchant
8. Merchant Loses to Chargebacks
9.Preventing Chargebacks
These 9 heads are involved in this and have a look at this
individually.
1. The Customer
The customer is a cardholder who purchases product/services from
the merchant.
2. Issuing Bank
The issuer provides payment cards to the cardholder.
The issuer is the underwriter of the account. That means it is
responsible to disburse funds to the merchant from the customers.
3. Card Network
This provides a transfer facility between issuers and acquirers.
4. Acquiring Bank
The acquirer is the party responsible for acquiring authorization
through the card network. The acquirer settles the funds collected from the
processing fees, network fees, and interchange fees.
The merchant account processor is a service provider that partners
with an acquirer. They provide services as process payments on the merchant’s
behalf.
6. Merchant’s Commercial Bank Account
The merchant commercial bank account is the destination of funds
transferred from a cardholder.
7. The Merchant
Company or a business who provides goods or services in exchange
for money.
8. Merchant Loses to Chargebacks
Losing to chargeback dispute is worse than chargeback itself here
he losses product and the amount disputed to him.
This is providing quality to the customers, in order to prevent
chargebacks merchants should consider the following points:
a. Accurate results of the product or services.
b. Proper return policy
c. Excellent customer support
d. Have a conversation with the customers including documents.
Chargeback Expertz
Chargeback Expertz gives proper prevention against the chargebacks.
Check us on app@chargebackexpertz.com or call us at +1 855-465-4723
we are available round the clock.
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