Internet Merchant Account – Preventing Chargebacks (part 1 of 3)
Merchants that process with an internet merchant account or process card not present transactions (keyed) tend to have more chargeback problems than traditional merchants that process card present transaction. Reduce your chargebacks when credit card processing online by taking extra precautions listed in this 3 part series.
During the next 3 posts I’ll define what a chargeback is and steps a merchant can take to reduce chargebacks or stop them altogether.
What is a chargeback?
A chargeback is the end result when a processor reverses a transaction and withdraws the funds from the merchant’s bank account due to the cardholder disputing the original transaction. Cardholders can dispute a transaction for many reasons such as: service or product never received, not satisfied with quality of product or service, does not recognize the merchant that charged their card or didn’t authorize them to charge their card in the first place.
When a cardholder disputes a transaction this action generates a retrieval request. The processor contacts the merchant and retrieves information specific to the transaction in question. The processor will normally ask for an invoice, proof of authorization, proof of shipping and that the cardholder actually received the product or service. On larger transactions the processor will actually call the cardholder to confirm they authorized the transaction, received the product or service, and they’re the actual cardholder. The funds in question are withdrawn from the merchant’s bank account and held by the processor until a decision has been made. If the processor rules in favor or the cardholder this results in a chargeback and the cardholder being credited for the original charge.
Taking into consideration the merchant not only loses the funds from the original transactions but is also charged additional fees for the chargeback and retrieval request it’s critical a merchant takes the proper steps to reduce chargebacks or stop them all together.
In parts 2 & 3 I’ll discuss steps a merchant can take to prevent chargebacks.
Recent Blog Posts
Cannabis ATM Services Denver CO Marijuana Dispensary
Cannabis ATM Services Denver CO Marijuana Dispensary Are you in need of ATM services or a machine for your Denver, CO., marijuana dispensary? The Transaction Group (TTG) has got you [...]
Marijuana Dispensary Cannabis ATM Services Pittsburgh PA
Dispensary Cannabis ATM Services Pittsburgh PA Are you in need of ATM services or a machine for your Pittsburgh, PA., marijuana dispensary? The Transaction Group (TTG) has got you covered. [...]
Cannabis ATM Services Tucson AZ Marijuana Dispensary
ATM Services Tucson AZ Marijuana Dispensary Are you in need of ATM services or a machine for your Tucson, AZ., marijuana dispensary? The Transaction Group (TTG) has got you covered. [...]
Marijuana Cannabis Dispensary ATM Services Springfield MO
Marijuana Dispensary ATM Services Springfield MO Are you in need of ATM services or a machine for your Springfield, MO., marijuana dispensary? The Transaction Group (TTG) has got you covered. [...]
St Louis MO Marijuana Cannabis Dispensary ATM Services
St Louis, MO., Cannabis Dispensary ATM Services Are you in need of ATM services or a machine for your St. Louis, MO., marijuana dispensary? The Transaction Group (TTG) has got [...]
Marijuana Dispensary Cannabis ATM Services Jacksonville FL
Marijuana Dispensary ATM Services Jacksonville FL Are you in need of ATM services or a machine for your Jacksonville Fl., marijuana dispensary? The Transaction Group (TTG) has got you covered. [...]
Cannabis Credit Card Processing South Dakota Marijuana Dispensary
South Dakota Marijuana Dispensary Credit Card Processing South Dakota marijuana dispensary credit card processing services. TTG offers the best merchant account solutions & payment options [...]
South Dakota Marijuana Dispensary Cannabis Merchant Accounts
South Dakota Marijuana Dispensary Merchant Accounts The Transaction Group (TTG) offers merchant accounts for South Dakota marijuana dispensaries. If you’re looking for a dispensary credit [...]
Are you shopping for a better rate? Let us save you money!
Most merchants are unaware that interchange rates are adjusted as much as 2x per year. Over the course of several years, those adjustments can hike up a merchant’s rate and cost the merchant thousands in processing fees. Contact us via the form above, or call us today at 888-383-8056. Chances are, we can save you up to 25% over your existing rates and fees!
Why do businesses choose to work with The Transaction Group?
- We aim for 100% customer satisfaction. We understand that the customer comes first. At the end of the day, if the customer is not happy, we’re not happy.
- We offer a FREE rate analysis to every business. In most cases, we can save a business up to 25% on existing rates and fees. But if we can’t beat a customer’s rate, we’re upfront from the start. We don’t waste the customer’s time.
- We are reliable and always available. If a customer has any concerns, we’re available even after business hours. We’ll address any issues immediately.
- We don’t believe in one-size-fits-all.We provide solutions based on the specific requirements of each and every business. What’s best for one small business may not work for another.
- We have a fast & easy setup process. In most cases, we offer a fast and easy approval and set up. While some high risk businesses can have longer underwriting times, we keep the customer informed throughout the process and work for fast approvals.
- We have solutions for every business type. From low-risk card-present credit card processing solutions to payment processing solutions for high risk e-commerce stores, we’ve got it all.
