What are chargebacks and how do they affect eCommerce businesses?

What are chargebacks and how do they affect eCommerce businesses?

Chargebacks occur when a customer disputes a transaction, leading to a reversal of funds. They can significantly impact eCommerce businesses by increasing costs and affecting merchant accounts.

What causes chargebacks?

Common causes include fraud, dissatisfaction with the product, or unauthorized transactions. Understanding these can help reduce chargebacks.

How can I prevent chargebacks in my online store?

To prevent chargebacks, ensure clear product descriptions, provide excellent customer service, and use secure payment methods.

What are the consequences of too many chargebacks?

Excessive chargebacks can lead to higher processing fees, account termination by payment processors, and damage to your business reputation.

Can chargebacks be disputed?

Yes, merchants can dispute chargebacks by providing evidence to support the legitimacy of the transaction.