Get FREE Quote

The Detailed Process of Disputing a Chargeback

A credit card chargeback occurs when a customer disputes a credit card processing transaction. The chargeback process increases customer confidence. When a customer wants to dispute a charge, it is a very simple process. However, banks and merchants have to handle all the tough issues, such as determining if the transaction is not fraud. Because of this, business owners must understand how to handle a chargeback successful.

The Credit Card Processing Chargeback Process

After a customer disputes a chargeback, the bank moves the transaction back to the merchant’s bank. The account of the cardholder is credited the amount of the transaction. The funds in question will be withheld until the issue is solved.

Various acquiring banks use different procedures when handling chargebacks. Although each method is specific, they are governed by the card brand. All the details needed to handle a chargeback is generally given to merchants by acquiring banks. Merchants must use these procedures efficiently.

Another important thing that must be considered is that a customer’s bank will refund the disputed amount fast. The customer gains those funds as soon as the chargeback is disputed. The refund process should not be handled by merchants on their own.

Disputed transactions will be deducted by acquiring banks from merchant accounts. When this occurs, the merchant must either plead the case or accept the chargeback. Most of the time, the merchant will present evidence that has details about if the transaction in question is legit. The evidence must have details about why the customer disputed a chargeback. If the evidences have details that convinces the acquiring bank that the transaction in question is legit, the acquirer will move the transaction to the issuing bank again.

After this point, the issuing bank has many things to consider. The bank may agree with the acquirer. The issuing bank may also reject the dispute of the cardholder or disagree. The merchant can accept the outcome or handle the transaction by using the services of the card association for final arbitration. If card association favors the merchant, the cardholder is billed the amount, and the merchant will get payment. If the card association favors the cardholder, the cardholder will keep the credit that the bank issued, and the merchant will not get paid.

Overall, chargebacks are useful for customers, and merchant accounts offer benefits to companies, but business owners must use the proper procedures to handle chargebacks efficiently to reduce risks.

Leave a Reply

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today!

© 2017 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

EMV™ is a registered trademark of EMVco, LLC. Apple, the Apple logo, iPhone and Apple Pay are trademarks of Apple, Inc., registered in the U.S. and other countries. Android™ is a trademark of Google, Inc.

Call for details.