A chargeback can be a detriment to any customer that has to experience it. An overdrawn bank account can lead to cash flow complications and various financial problems. A credit card chargeback can be efficiently reversed by filing a particular complaint. Some of the different complaints that can be filed include fraudulence, erroneous billing, and identity theft. When a complaint is filed, the bank may make a decision to give the money back and reverse the charges. Many small and mid-sized businesses experience the chargeback crunch as they become strapped and cannot locate the needed documentation. Many financial businesses also are forced to charge additional fees for chargebacks that occur. Unfortunately, many customers and merchants incur chargebacks that can reach as high as $100 dollars.
Some important steps can be taken to prevent chargebacks from occurring in the future:
- The business name should be accurate and precise so that customers can recognize it. Many chargebacks occur because a business name is inaccurate.
- Responding in a timely manner when a chargeback does occur. An individual should make sure to respond within 12 days at the latest.
- Make sure the receipt signature matches with the signature on the backside of the debit card.
- When the credit card is declined, make sure to completely stop using it.
- Procure an authorization for the sale that occurs.
- When a purchase is made online, make sure to utilize AVS (Address Verification System).
- The bank should be provided with a local number so that they can reach you anytime.
Another reliable service that can be obtained is called chargeback insurance and it will reimburse the charges. The chargeback insurance will typically cover a charge that occurs due to a stolen debit or credit card. A chargeback can serve as a major complication for many businesses.
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