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Chargebacks: Everything You Need to Know About Chargeback Reason Codes, Fees, and Best Practices for Disputes

Carson Blair

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Chargeback Paypal: What You Need to Know About Chargebacks

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Language	:	English
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Chargebacks are a growing problem for merchants, costing billions of dollars in lost revenue each year. A chargeback occurs when a customer disputes a transaction with their bank or credit card company, resulting in the funds being reversed from the merchant's account.

Chargeback Reason Codes

There are many different reasons why a customer may initiate a chargeback. Some of the most common reasons include:

Fraudulent transactions: This is when someone makes a purchase without the cardholder's knowledge or consent.
Unauthorized purchases: This can happen when a cardholder's card is stolen or used without their permission.
Product or service issues: If a customer is dissatisfied with the product or service they received, they may initiate a chargeback.
Billing errors: If a customer believes they have been overcharged or charged for something they did not order, they may initiate a chargeback.

Chargeback Fees

In addition to the lost revenue, merchants can also be charged a fee for each chargeback. The fee varies depending on the payment processor and the reason for the chargeback. However, the average fee is around $25.

Best Practices for Disputing Chargebacks

If you receive a chargeback, it is important to take steps to dispute it immediately. Here are some tips for disputing chargebacks:

Gather evidence: This can include documentation such as proof of delivery, invoices, or customer communication.
Respond to the dispute in a timely manner: Most payment processors have a deadline for disputing chargebacks. It is important to respond to the dispute before the deadline.
Be clear and concise in your response: Explain why you believe the chargeback is invalid and provide any evidence you have to support your claim.
Be professional and respectful: It is important to maintain a professional demeanor even if you are frustrated with the chargeback.

Chargebacks can be a costly and time-consuming problem for merchants. However, by understanding the chargeback process and following best practices for disputing chargebacks, you can minimize your losses and protect your business.

Chargeback Paypal: What You Need to Know About Chargebacks

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