The Dreaded Chargeback


As a business owner, it is highly likely that you accept credit card payments. Although being able to accept these payments is integral, they also come with risks. Many businesses have been forced to deal with customers, who attempt to reclaim their money, by contacting their credit card provider and claiming fraud. When they do this, the credit card provider will usually refund the money immediately and put the responsibility on the seller’s shoulders. Within this guide, you will learn all about this dilemma, so you will be able to handle it better.


What Is It?


First and foremost, you should familiarize yourself with the concept of a chargeback. The credit card companies have built this type of system, in order to protect their customers from fraud. Although it is often used with good intentions, some customers abuse the system, as a way to obtain their items for free. The good news is that the merchant always has the opportunity to fight against the claim. The bad news is that the credit card companies will almost always side with the buyer.




The best way to counteract a problem is by preventing it in the first place. Delivering good customer service and sending out your customer’s order quickly should become habits. You should also take extra precaution, when packaging the item, in order to prevent damage during shipping. Also, make sure that you always keep records of your transactions, as well as shipments. This will help to ensure that you’ll be better prepared to fight against fraudulent claims.


Fighting It


Now, you should learn how to fight against a mischievous chargeback. If you kept all of your transaction and shipment records, the process will be much easier. Once the company has notified you of the chargeback, you will want to begin collecting all documents pertaining to the sell. You should attempt to obtain the following information.


  • Payment received and order invoice
  • Shipping confirmation
  • Customer refunded, if given


Once you’ve acquired this information, you will want to turn it over to the credit card company. From that point forward, the outcome will rest in their hands and you will just need to sit back and wait.


Things To Remember


Most businesses very rarely deal with this type of problem. Make sure that you keep your customer service up and running at top performance. Most customers will contact the company directly, before filing a claim with the credit card company. By working with them closely, you may be able to prevent the problem from escalating.

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