What Are the Most Common Chargeback Reasons?
It may happen that a customer is not happy with his purchase or cannot recognize a transaction in his bank account. If the issue cannot be resolved with the seller directly, the customer has the right to contact his bank and request an official refund which is known as a chargeback. Before getting to chargeback reasons, here is a brief introduction to what a chargeback is:
What is a chargeback?
A chargeback is a payment refund officially claimed by a cardholder from his bank or card issuer. Your customer may dispute a card transaction, and the bank may immediately credit the disputed payment amount to the customer’s account. As a merchant, you are supposed to be prepared for the risk of chargebacks.
Get to know the most common causes of chargebacks in order to understand how to avoid them:
Why does a chargeback occur?
- The card was used without the owner’s knowledge or permission;
- The cardholder did not authorize the charge, e.g. the card was stolen;
- The cardholder does not remember or recognize the charge, e.g. the purchase was made by a family member;
- The quality of the item/service was low or the product was damaged;
- The item was not as described;
- The customer did not receive the service/item he/she paid for;
- The customer unintentionally placed an order several times;
- The subscription was cancelled, but the recurring billing was not stopped;
- Other processing errors.
If your customer files a chargeback, we will receive a notification on your behalf and inform you about it. Cardinity advises you to collect as many details about the disputed order as possible. This way you will get the chance to win the chargeback. Note that it is the customer’s issuing bank who makes the decision.
Open a merchant account for free
and start processing payments with Cardinity!