Part 3: Chargeback Fraud
Now that you know what chargebacks are (Part 1), and how they can negatively affect your organization (Part 2), this post will focus on chargeback fraud and provide some basic tips for preventing it.
[fa icon='calendar'] Dec 14, 2017 11:22:45 AM / by Louis Isabella
Part 3: Chargeback Fraud
Now that you know what chargebacks are (Part 1), and how they can negatively affect your organization (Part 2), this post will focus on chargeback fraud and provide some basic tips for preventing it.
[fa icon='calendar'] Nov 10, 2017 9:20:47 AM / by Louis Isabella
Part 2: Why Your Organization Should Be Concerned
In Part 1 (What is a Chargeback?) of this blog series, you had learned what chargebacks were and some general facts about them. If you are thinking “That was good information, but why should I be so concerned about a couple of forced refunds?”, then read carefully. Chargebacks cost a lot more than just lost revenue. Additional fees, damaged reputation, and the possibility of your merchant contract being suspended/terminated are some of the additional risks outlined below.
[fa icon='calendar'] Oct 19, 2017 9:00:17 AM / by Louis Isabella
Part 1: What is a Chargeback?
This is the first part of a multi-part blog series focusing on chargebacks. As the other parts are published, links to them will be placed below.
A chargeback is the result of a customer disputing a charge on their credit/debit card. They can be initiated for a variety of reasons, but all lead to the same result; money paid to your organization is removed from your bank account and returned to the customer without your consent. The chargeback process is designed to increase customer confidence, but, unfortunately for business owners, has become a tool for part-time fraudsters to get free stuff. The fraudulent use of chargebacks is often called “chargeback fraud,” “friendly fraud,” or “online shoplifting.”