Chargebacks 101: What They Are & Why They Matter

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Chargebacks are a growing concern for modern merchants. And at the rate they’re increasing, it’s no wonder why.

From 2016 to 2017, chargebacks jumped 179 percent, costing merchant’s 1.9 percent of their total annual revenue. Add in the potential threat chargebacks pose to your reputation and merchant accounts, and you’ve got a pretty serious problem on your hands – no matter what line of business you’re in.

What is a Chargeback?

Put simply, a chargeback is when a customer is credited back for a card transaction.

It occurs when the customer contacts their bank, disputes a charge on their bill or statement, and requests a refund.

Typically, consumers file chargeback disputes when they don’t recognize a transaction or are somehow dissatisfied with their purchase or the buying experience. In some cases, they may simply be trying to get their product or service for free.

Read the full article here.