A chargeback is what happens when funds are returned to a customer, usually after they have complained about an item on their credit card statement.
This can happen for various reasons including:
- technical or administrative errors, e.g. a purchase gets processed twice
- customers claiming they did not authorise a purchase
- customers claiming they haven't received goods as promised
What are the Fees?
Chargeback fees are typically in the £5 to £15 range (on top of the initial amount being refunded to the cardholder.)
How to Reduce Chargebacks
You can minimise chargebacks (and chargeback fees) by having good customer care and up-to-date authentication technology (such as 3-D Secure).