A Quick Look @ Chargebacks and 2CheckOut

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. Which Is Better? PayPal or 2CheckOut In recent times, gurus have been debating whether PayPal is really worth it or not. It’s not hard to find sites that are offering to secure Verified PayPal Merchant Accounts for merchants in ineligible countries....
2. Too Much Ado About GTB Naira MasterCard Of late most banks have started issuing chip and PIN enabled ATM cards in a bid to reduce the amount of ATM fraud which is scourging the nation @ the moment. If I’m not wrong, EcoBank launched the first ever Naira Credit Card and now GTB has followed suit...
3. Download Sylvie Fortin’s Internet Marketing Sins Free Attention all make money online newbies. Get the down low on internet marketing now by downloading Sylvie Fortin’s Internet Marketing Sins free of charge! There really isn’t much to say about this 3 part report other than it’s ABSOLUTELY AMAZING! Sincerely speaking, I was ready for some useless ranting until...

Tweet

Share

Save on Delicious

Social Tagging: 2checkout > chargebacks > Payment Processors > refunds

Get Full Blogging and Make Money Online Tips Delivered Via E-mail Please check your inbox and spam folder for the confirmation email