What is a Chargeback?
Chargebacks occur when buyers their card issuing bank to dispute a transaction. There are many reasons chargebacks occur. Regardless of the reason, it’s important to keep chargebacks as low as possible to protect your payment processing accounts.
Chargebacks can come from real fraudulent activity. In these cases, businesses are targeted by cybercriminals who use stolen card information to purchase goods or services. A more common cause of chargebacks is “friendly fraud” where buyers dispute a transaction to try to get product or service for free. Chargebacks can also result when merchants do not provide the product or service as promised.
To keep chargeback ratios within the limits required by the card brands it’s important to:
- Prevent chargebacks before they happen
- Manage chargebacks once they occur
- Stop cybercriminals in their tracks with fraud-fighting tools