So, the consumer has the right within a certain period to apply to his bank and protest the transaction. Then the process of interaction between the payer’s bank and the beneficiary is started. As a result, a decision is made to return the funds for the disputed transaction - this is a chargeback.
Remember, if a merchant has too many chargebacks - it will be deadly for your business.
The procedure for a chargeback is described in the VISA rules as follows:
A decision on the application is made not by the court or a state body, but by the bank. At the same time, there is no right to appeal against the issuing bank of the decision made by the trade and service company.
Chargeback can be initiated by the payer in the following cases:
Features of this procedure:
How to minimize risks
If it is impossible to deprive the consumer of the right to apply for chargeback, then there is an opportunity to minimize the risk of satisfaction of claims. For this you need:
Hope it was helpful
You can also see how to fight chargebacks here: https://payspacelv.com/four-tips-for-battling-business-chargebacks/
Solved! Go to the solution
Great post @royce2, thanks for sharing. Learning about Chargebacks and how to approach them is essential for any online store owner.
Should anyone want to learn more about the Chargeback process in more detail, you can see the Shopify information document here as well as a blog post from the content team at Shopify with more information here.
The Shopify app store also has some apps which can help store owners detect potential fraudulent customers and orders which might also be useful. Some of the most popular fraud apps can be found below:
All the best, Nick