With third party processors you also receive a secure web page for orders. When all of these benefits, the time saved in data entry, the money saved on a digital certificate, the secure ordering convenience, and processing through the Internet, are considered you may ask yourself how you could afford to do it any other way. It sure is less expensive than hiring a part-time employee for data entry. Make sure your refund policy is clearly stated, check IDs, or use an AVS supported processing system and treat your customers fairly and you can avoid the majority of the charge backs. If you receive too many you'll risk your merchant account being terminated with cause.
Charge backs are an industry term meaning when the bank charges a sale back to a merchant.
This can happen for a number of reasons, but, it most often occurs when a consumer feels he did not receive the goods or services offered by the merchant, or was unhappy with the quality of the goods or services. Most of the time this can be avoided by providing quality goods and services and good customer service. The second most popular way a merchant can get hit with a charge back is by stolen or fraudulent credit cards. AVS is standard on most merchant account software. If you do mail order, phone order, or Internet sales you MUST use Address Verification.