In this article, we are going to discuss what a chargeback facility is and things you need to know about them. Also, we will discuss chargeback reasons, the chargeback process, and how to minimize chargeback.

What is a chargeback facility?

If you take card payments, then it is certain that you will know what a chargeback facility means. If not, then we are going to discuss it below, and you can know what it is. A chargeback is the return of the fund, which is initiated by the issuer bank on the customer’s side. This acts like a customer protection program that will only work if it is commanded by the customer.

There is only some reason due to which a customer can apply for a chargeback facility. If the goods are not up to the quality and images on the store, then they can ask for a chargeback facility. In this, the goods will be taken back from the owner, and the company has to pay them the amount back.

Also, they can call for a chargeback facility if their card is charged without their acknowledgement. If a customer asks for the chargeback, the bank will first investigate and then decide on the matter. If the bank finds that there is no fault in the product or delivery, they will revoke any demands made.

What are the possible reasons for a chargeback?

Mostly the chargebacks are made when the customer is not happy with the product which they receive. This reason customer is not satisfied with the goods and service.

• The goods are not delivered, or the service is slow.
• The goods have been received by the customer but are different from the description.
• The customer has returned the goods but has not received money from the merchant.

These are the reasons which happen due to cleric mistakes.

• The customer was accidentally charged twice for the same product.
• The customer card was charged with a different amount than told.

These are the reasons due to fraud transactions.

• They could ask for a chargeback if they did not make the payment willingly. It is a long process.
• The customer does not recognize the transaction statement on their card.

What is the process of a chargeback facility?

• The cardholder will first call the issuer bank and ask for a chargeback.

• The issuer bank will investigate and inform the acquirer’s bank about the request.

• The acquiring bank will inform bout the chargeback request made by a customer.

• The merchant can either accept the chargeback request or object to it.

• The acquiring bank will also investigate, and if the merchant is right, they will give evidence.

• The issuer bank will inform the customer about the decision, and if rejected, the evidence supplied after an investigation is provided.

How to minimize the risk of chargeback?

The customer should first try to communicate with the business to try and find a solution to the problem. A merchant should also do everything to stop the customer from putting a chargeback request. Because this will affect the rating and reputation of their business in the market.