That is literally the million-dollar question for many companies. The cost of chargebacks varies greatly. Lots of factors can tip the scales on your bottom line. Things like the processing network used, chargeback volume, whether your selling digital or physical [...]

While there are solutions to significantly reduce your chargebacks, there's no guarantee you can prevent all chargebacks. Under the current system, you may not even want to. You can absolutely eliminate chargebacks due to merchant error. By using alert services [...]

Chargeback thresholds are set by each card network to limit how many chargebacks a merchant may process. The threshold is set as a ratio of monthly chargebacks divided by total monthly transactions. Typically, if the chargeback ratio approached 1% of [...]

EMV chips are those little golden squares on your credit and debit cards. They are little computer chips that prevent your card from being counterfeited. EMV chips have made card-present fraud much more difficult. This has pushed fraud into the [...]

The merchant is ultimately liable for chargebacks. The money returned to the cardholder comes from the merchant. The merchant pays any and all fees for each chargeback, and penalties are assessed against them. If a chargeback is unwarranted, the burden [...]

Issuers send chargebacks to the merchant's acquiring bank with a reason code to communicate what caused it. Each card network maintains reason codes to cover all the disputes that qualify for chargebacks. The numbers and reasons vary by network, but [...]

Merchant error can be a number of things: The cardholder was double charged, or charged the wrong amount They canceled an order with the merchant and were charged. Order never arrived, or arrived late. Qualitative - Customer did not receive [...]

Friendly fraud is when the cardholder commits the fraud, either intentionally or unintentionally. They either do not recognize the transaction (unintentional), or they are intentionally claiming a transaction was true fraud to get the chargeback and keep what they purchased. [...]

True fraud is where the cardholder is victimized in some way; a third party steals cardholder information to make transactions in their name. There are number of ways to commit friendly fraud. True fraud chargebacks should not be disputed. They [...]

There are two main categories for chargeback causes: fraud and merchant error. The cardholder either suspects a transaction was fraudulent or something went wrong in its execution.Fraud is comprised of true criminal fraud and friendly fraud. Merchant error can be [...]