Credit card chargeback is a very important topic that merchants, as well as customers, should know. If you want to step into the world of online business or online shopping, you must know everything about credit card chargebacks. In short, the credit card chargeback means the reversal of the payment made by the credit card. Well, if you are a merchant, you might be wondering that it is going against your business. However, if you are standing on the other side of the table, credit card chargeback will boost your confidence. It will work as a shield for the customers. Considering the present era where the number of credit card frauds is increased, the credit card chargeback will give you confidence. It is one of the most reliable ways through which you can get back your lost money. It does not matter whether you are an online merchant or online consumer, you must know the important aspects of the credit card chargeback. Keeping this point in mind, we at Rapidcents highlighted the important aspects of this very important topic.
Background Of Credit Card Chargeback
Well, the credit card is not a new thing. It was invented before 1960. But, it did not gain huge popularity till the early stage of 1970. Yes, people in Canada and the U.S. did not give much preference to this form of transaction. The main reason behind it was the fraudulent credit card transactions that cardholders experienced during the early stage of 1970. Well, credit cards could be used for any sort of unauthorized transactions and the cardholders would have to deal with the consequences. The cardholders also registered complaints against some impudence and knavish merchants for making fraudulent payments using the customer’s credit cards.
Therefore, credit card chargeback was introduced to protect the credit cardholders. It is actually a safety measure that ensures that money will be safe even after sharing the credit card details with the merchants. If we consider the present era, the credit card chargeback has become the backbone or spine of the credit card processing system.
When You Should Use Chargeback
Credit card transactions have got a huge preference in the 21st century. Yes, people are ignoring offline payment modes. On the other side, merchants are also installing online payment terminals for attracting more customers to their business. However, a credit card chargeback system exists but, people don’t know how to use this. Well, if you face any sort of fraudulent transaction made using your card, you can raise a credit card chargeback. It will reverse the transaction. You will have to contact the bank in order to get back your stolen credit balance. If you take immediate action, you will be able to prevent any additional losses. Well, if you face any fraudulent situation in a shop, you can ask the merchant.
If the merchant has made any mistake, he can reverse the transaction. In such a situation, there will be no involvement of your bank. The merchant will pay you and it will be considered as an accident. However, if the merchant denies paying, you will have the option to use your power that comes in the form of credit card chargeback. Getting mere cashback will not be enough in such a situation, you will have to go for shoplifting.
When You Should Raise A Chargeback?
Well, there are various situations when you should raise the credit card chargeback. We have elaborate the circumstances below:
- If you see that there is a fraudulent transaction made using your credit card, you will have to contact your bank that issued your credit card to raise the credit card chargeback.
- If you have made any purchase and after that, you get unsatisfactory service from the merchants, you can raise credit card chargeback. However, in such a case, you will have two options. First, you can contact the merchant and explain the entire matter. If the merchant gives you a satisfactory resolution, you can end the matter at that point. But, if you are not satisfied with the resolution provided by the merchant, you will have to get in touch with your bank in order to raise the chargeback. In the second scenario, the process will be very lengthy.
Well, some customers want to take advantage of the chargeback system and this is why they use this system in the wrong way. It is called chargeback fraud or friendly fraud. In such a case, the merchants deal with the consequences. However, if you are running an internet business, you must know the situations when the customers use chargeback fraud.
- Customers do not want to follow the lengthy return process.
- Customers want the product for free.
Not A Rapidcents Merchant?
So, if you want to conduct your online business without facing any credit card chargeback issues, you should become a merchant of Rapidcents that is a renowned online payment processor. So, don’t just think, get in touch with Rapidcents as early as possible.
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