If you're a merchant, chargebacks can be a frustrating threat to your livelihood. If you're a consumer, chargebacks represent a shield between you and dishonest merchants. If those two things seem at odds, well, that was never the way it was intended.
Merchants must work to reduce the risk of chargebacks, both legitimate and illegitimate. If merchants ensure they are offering prompt and attentive customer service, providing high quality products and services, and attending to transaction details, consumers won’t have a valid reason to file a chargeback against the establishment.
The acquirer re-presents the chargeback. The acquirer takes evidence provided by the merchant and disputes the chargeback--a process called representment --on behalf of the merchant. The issuer reviews the evidence and makes a final decision.
As an example, let's look at the basic life cycle of a chargeback: The cardholder files a chargeback. The issuer reviews /assigns a reason code to the case. The issuer investigates and takes action. The acquirer reviews the chargeback and takes action.
How does chargeback work? Chargeback is a transaction reversal made to dispute a card transaction and secure a refund for the purchase. Chargeback works by the bank withdrawing funds that were previously deposited into the recipient’s - usually a retailer - bank account and putting them back into your account.
Request a chargeback and get you money back FAST! A step-by-step guide on how to do a chargeback! Featured in BBC, NY Times, Newsweek & more!
A well-designed chargeback system can help a company become more fiscally responsible. Facilities management uses standard commercial real estate industry practices to charge back facility-related services to internal customers.
By implementing a fair, equitable chargeback system, you will recognize two primary benefits: cost awareness and the elimination of the cookie jar mentality.
Before procedures can be implemented, any existing policies, manual procedures, and automated sequences must be dovetailed so that data can be tracked smoothly across organizational lines, even within the facilities department. If existing accounting cost centers are diverse, some means of collecting or estimating all the real costs must be developed. It is also important to present a consistent image to users. Bills from all affected facilities components must either be grouped together or sent separately in the same format. This creates an accounting burden that the facilities department must be prepared to meet.
Other Facility-Related One-Time Costs. Expenses associated with rearranging facilities to support a change in the basic operation of the user constitute a facility-related one-time cost. Such costs contrast with ongoing services, which maintain the status quo. One-time costs are usually tracked by work orders for specific jobs and can include the following:
Above-building-standard alterations to prepare the space for occupancy (especially remodeling for a current occupant who intends to stay)
Change in an organization can be difficult, and implementing a chargeback system is certainly no exception to this rule. As you implement a chargeback system, you will likely have to hurdle some obstacles. The most likely of these you will encounter are:
Merchants must work to reduce the risk of chargebacks, both legitimate and illegitimate. If merchants ensure they are offering prompt and attentive customer service, providing high quality products and services, and attending to transaction details, consumers won’t have a valid reason to file a chargeback against the establishment. Friendly fraud will decrease.
As originally conceived, chargebacks were a form of cardholder protection, a "safety net" of sorts that meant the cardholder’s money was safe, no matter what. An argument with a merchant, for example, could easily come to a stalemate: "I say you owe me the money, and there's nothing you can do about it because the bank has already paid me!"
In the early 1970s—before all the above protections had been put in place—bank credit cards had not yet gained widespread acceptance in the US.
This allowed chargebacks to become weapons which consumers can use against merchants.
Chargebacks are designed to keep customers feeling secure. The risk of a forced reversal of funds keeps merchants focused on providing exceptional customer service.
A chargeback is a credit or debit card charge that is reversed by a bank. This often happens after a cardholder contacts their bank to dispute a transaction, claiming that it resulted from fraud or abuse. The funds are pulled from the merchant's account, and returned to the cardholder's account as part of the chargeback process.
As a consumer protection, the chargeback process is naturally skewed towards the cardholder’s safety, in multiple ways: Chargebacks are designed to keep customers feeling secure. The risk of a forced reversal of funds keeps merchants focused on providing exceptional customer service.
A well-designed cost chargeback system will make fleet costs more visible. Photo: Getty Images
Are your fleet costs visible? Are they clear and easily comprehensible to all stakeholders, including those outside of the fleet management organization, such as fleet users and your organization’s leadership? How do you know if you are doing a good job of managing costs, or if fleet costs are even reasonable?
Merchants must work to reduce the risk of chargebacks, both legitimate and illegitimate. If merchants ensure they are offering prompt and attentive customer service, providing high quality products and services, and attending to transaction details, consumers won’t have a valid reason to file a chargeback against the establishment. Friendly fraud will decrease.
As originally conceived, chargebacks were a form of cardholder protection, a "safety net" of sorts that meant the cardholder’s money was safe, no matter what. An argument with a merchant, for example, could easily come to a stalemate: "I say you owe me the money, and there's nothing you can do about it because the bank has already paid me!"
In the early 1970s—before all the above protections had been put in place—bank credit cards had not yet gained widespread acceptance in the US.
This allowed chargebacks to become weapons which consumers can use against merchants.
Chargebacks are designed to keep customers feeling secure. The risk of a forced reversal of funds keeps merchants focused on providing exceptional customer service.
A chargeback is a credit or debit card charge that is reversed by a bank. This often happens after a cardholder contacts their bank to dispute a transaction, claiming that it resulted from fraud or abuse. The funds are pulled from the merchant's account, and returned to the cardholder's account as part of the chargeback process.
As a consumer protection, the chargeback process is naturally skewed towards the cardholder’s safety, in multiple ways: Chargebacks are designed to keep customers feeling secure. The risk of a forced reversal of funds keeps merchants focused on providing exceptional customer service.