What are chargebacks in e-commerce and how do they work?

What are chargebacks in e-commerce and how do they work?

Chargebacks are reversals of transactions initiated by the bank or credit card issuer. They occur when a customer disputes a charge.

Why would a customer initiate a chargeback?

Customers may initiate chargebacks for various reasons, such as unauthorized transactions, dissatisfaction with a product, or failure to receive an item.

How can e-commerce businesses prevent chargebacks?

Businesses can prevent chargebacks by ensuring clear communication, providing excellent customer service, and using secure payment methods.

What are the consequences of too many chargebacks for a business?

Excessive chargebacks can lead to financial losses, increased processing fees, and potential penalties from payment processors.

Can chargebacks be disputed by the merchant?

Yes, merchants can dispute chargebacks by providing evidence to the payment processor to prove the transaction was valid.