Filing A Chargeback

How To Charge Back A Credit Card

Credit Card ChargebackFiling a chargeback is actually quite easy for the consumer: they call their credit card company and dispute the charge, in whole or in part. For the merchant, however, the process is draconian, unfair, and tedious. There is a special place in hell for consumers who falsely charge back cards out greed or spite when they got exactly what they contracted for.

Merchants will need to collect all of the pertinent information about the chargeback and prove that the customer actually got the product or service, and a stolen card was not used. This can be particularly unfair to small business owners, who can be out several thousand dollars because of theft, and the card company is out very little. Even though all security procedures are followed, this happens all too often, and business owners are the ones that suffer.

Spiteful Customers

We have all had customers who are just sociopaths. Many of them like to wield chargebacks for their own benefit. Other consumers suffer because now every time there is a billing dispute the merchant assumes that the person making is is just another freeloader trying to scam an honest merchant. These disputes now are more drawn out, and even though card companies still favor the consumer in disputes, there are services that will argue the chargeback all the way to the end, and they make good money doing it. Major retailers may fight chargebacks out of principle, just to make sure they aren't targets for more fraud.

Losses can sink merchants

A merchant hit with excessive chargebacks, or fraud, can be financially ruined, especially when fraud is in play. Merchants are out the cost of items or the price of a service, and the consumer or fraudster retains the value of the item. With friendly fraud, this means that someone has gotten a product or service for free, but the merchant not only loses that cost but is charged a fee and is out the time and money for disputing the chargeback. Too many chargebacks also will cause credit card processing fees to rise, or in some cases the merchant could be banned from processing cards. For an online business this is the kiss of death.