The main purpose of a chargeback is to protect cardholders from unauthorized charges to their credit card. It’s not always possible to prevent chargebacks from happening but there are ways to reduce the number by implementing a chargeback management strategy at your business. Being organized is crucial in fighting chargebacks successfully. We’ve got a few basic suggestions to get you started.
The chargeback mechanism is great when it comes to protecting cardholders. The unpleasant part for a business owner is when a fraudulent transaction takes place or an unethical cardholder uses the chargeback process to get a refund or to game the system, the liability is on the merchant. Having an effective chargeback management program in place is a must to reduce revenue loss and keep your company’s chargeback rate well under 1%.