Chargebacks occur when a customer contacts their credit card issuing bank, disputes a charge and requests a refund for unsatisfactory merchandise, merchandise not received, damaged merchandise received, etc.
Chargebacks present several unpleasant outcomes to merchants. First, not only does the merchant incur a chargeback fee, but typically also loses the revenue from the sale. The amount in dispute is debited from their account and credited back to the customer while research into the purchase transaction is underway.
Often, the merchant loses both the revenue and the disputed merchandise when the customer fails to return it. In addition, a high incidence of chargebacks can lead to increased merchant fees and the risk that the merchant have their account suspended.
Fraud is a typical reason for a high rate of chargebacks. There are numerous ways that a fraudster can take advantage of standard business practices.
Optimized Payments utilizes a combination of technology and educational services to help our clients reduce their overall chargebacks, and benchmark their chargebacks against their peers in the industry. We’ll use our industry knowledge to increase your profitability, and we’ll manage all details, so you stay focused on core business operations.