Chargebacks are disputed transactions that protect consumers from unauthorized transactions, crucial for maintaining merchant security. The chargeback process involves several key parties, including customers, issuing banks, card networks, acquiring banks, and merchant account processors. Merchants can mitigate chargebacks through excellent customer service, clear return policies, and accurate product descriptions.

1. Chargeback Expertz
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A Quick Review on
Chargeback Process

2. What is Chargeback?
– The chargebacks are disputed transactions, which take place between
a merchant and a customer. Chargeback is the security, provided to consumers
to protect them from unauthorized transactions.
– Chargeback management is a must to enhance the security and validation of
a transaction else the merchant’s business would be at risk if the chargeback
rate is too high.
However, there are consumers who abuse chargebacks heedlessly.

3. What is Chargeback Process?
– Chargeback Process
Chargeback is a type of security provided to cardholder against any unauthorized
credit or fraudsters. If customer feel cheated, he can file chargeback within
certain time span. On request of customer, issuer bank performs necessary
investigation and decides where to approve or deny chargebacks.
Although chargeback process includes many steps. Now, as you have got little
idea about what chargeback process is, let us discuss it in details.

5. Parties involved in the Chargeback
Process:
The Customer – The customer is a cardholder who purchases from the merchant. There are
many reasons for the customer to file a dispute if he sees an unrecognizable transaction or
does not recognize the billing descriptor. Each card network guarantees zero-
fraud liability to its customers.
Issuing Bank – The issuer provides payment cards to the cardholder. Some examples
include credit and debit cards. The issuer is the underwriter of the account. That means it is
responsible to disburse funds to the merchant from the customers.

6. Card Network – Visa, MasterCard, American Express and Discover are the four
major card networks globally. Each of them provides a transfer facility between
issuers and acquirers. They also provide settlement facility between both the
parties.
Acquiring Bank – The acquirer is the party responsible for
acquiring authorization through the card network. Acquirer receives funds on
the merchant’s behalf from the customer’s issuing bank. The acquirer settles the
funds collected from the processing fees, network fees, and interchange fees.
Merchant Account Processor – The merchant account processor is a service
provider that partners with an acquirer. It provides services as process payments
on the merchant’s behalf.
Merchant’s Commercial Bank Account – The acquirer receives the funds from
the issuer through the card network’s settlement process. The funds are deposited
to the merchant commercial bank account. The merchant commercial
bank account is the destination of funds transferred from a cardholder.

7. The Merchant – Company or a business who provides goods or services in
exchange for money.
Merchant Loses to Chargebacks – Losing to chargeback dispute is worse
than chargeback itself. Because merchants just don’t lose the amount that is
disputed but also loses money as chargeback fees and in most cases product also.
Moreover, the merchant loses time from fulfilling delivery and more.
Preventing Chargebacks – Merchants honesty is a virtue, which reduces
chargebacks to 80%. This is providing quality to the customers, in order to prevent
chargebacks merchants should consider the following points:
1. Excellent customer support
2. Proper return policy
3. Accurate product descriptions and billing
4. Accurate results of the product or services.
5. Have a conversation with the customers including documents.

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