Many merchants and entrepreneurs have heard of chargebacks but may not understand exactly what they are. That’s why we’re going to outline what chargebacks are, where they came from, and what the chargeback process looks like.
Dispute management is not unlike a bag of golf clubs, where you’ll need different woods and wedges for specific parts of the fairway. Each management service has a particular application and building the right “bag” depends on knowing which circumstances each service is needed for.
Dispute management is a balancing act. You want to protect your bottom line from fraud and chargebacks, but you don't want to add to the cost by throwing time and resources at the problem that could be better spent elsewhere.
Chargebacks were created almost fifty years ago by the Fair Credit Billing Act to protect consumers from abuse. Unfortunately, little has been done to adapt the chargeback to today's eCommerce landscape, making it into a tremendous burden for merchants.