what are chargebacks
When chargebacks get out of control, you will incur huge losses and your companyâs image may be tarnished among credit card processors. To operate profitably, businesses have to take steps to ensure they have the lowest chargeback rate. In this article, we explore what chargebacks are and what you can do to minimize them in your business. Any business that sells goods or services online has to take control of chargebacks. Too many chargebacks can break a businessâs bottom line and reputation among credit card merchants and processors. But letâs start with the basics, what are chargebacks? What are Chargebacks? In simple terms, chargebacks are disputed transactions. These are charges that customers dispute on their credit cards for different transactions. When a dispute is made, the merchant reverses the transaction and the customer receives his money back. Chargebacks are meant to protect consumers from unauthorized transactions. Instead of wasting time arguing with suppliers on the legitimacy of a transaction, customers can simply initiate a chargeback transfer.