A Quick Look @ Chargebacks and 2CheckOut

NOTE: Should in case you are interested in getting a Payoneer Mastercard FREE OF CHARGE, do please follow the step by step guide @ How To Order Payoneer MasterCard From LimeExchange.

If you accept credit cards as a form of payment on your site, chargebacks and refunds are definitely something you might have to deal with @ some point in time. At the end of this post is a free e-book that’s all about Beating Chargebacks.

According to Wikipedia, a chargeback is the return of funds to a consumer, forcibly initiated by the consumer’s issuing bank. Specifically, it is the reversal of a prior outbound transfer of funds from a consumer’s bank account or line of credit. On the other hand, a refund is initiated by the customer himself and the issuing bank is NEVER brought in..

In both cases the products bought are returned to the merchant DEPENDING on if they were physical (chairs, paper, magazines etc) or digital goods (e-books, web hosting etc).

A chargeback could arise for various reasons including:

1. The cardholder couldn’t reach the merchant to lay a pertinent complaint.
2. An urgent support ticket issued by the cardholder wasn’t promptly handled.
3. The transaction was illegally done by a third party e.g Credit card theft or identity theft.
4. Friendly fraud. The cardholder is fraudulent and was only looking to get the product for free. (This seems to be the case mostly with digital products)

Chargebacks are quite expensive as you get to payback the customer what he/she paid for your services as well as you get to pay your merchant account provider for time wasted in handling chargebacks.

According to 2CheckOut, products that will experience a higher degree of chargebacks are intangible and products that appeal to children, teenagers, and single adults. Products that will experience a lower amount of chargebacks are tangible products and products purchased primarily by professionals and families.

In most instances you will be notified as to any inquiry or complaint associated with the product you are supplying. If, however, 2CO determines that a failure to quickly cancel or refund a transaction would result in more harmful and costly chargeback procedures than it is likely that a refund or cancellation with be immediately transacted.

You might want to take a look @ the following articles with regards to 2checkOut’s Refund policies

1. What are 2CO’s Refund and Dispute Policies?
2. Is there a Time Limit on Issuing Refunds?
3. Refund / Chargeback Statistics

Please note that 2checkOut WILL cancel your account if too many chargebacks occur on your end.

CLICK HERE TO ORDER A 2CHECKOUT MERCHANT ACCOUNT NOW!

To learn more about chargebacks in details, do please right click on the image below and download the free e-book. All the best!

1. 2CheckOut Online Credit Card Processing Application Guide
2. 2CheckOut: One Great Alternative To Paypal ?
3. Top 4 Quick Ways Of Earning A Reputation As A Fraud
4. A Quick Look At Zenith Bank’s Visa Prepaid Buxz Debit Card
5. 5 Quick Tips For Blogging While Traveling Or Vacationing