Teacher
Professional
- Messages
- 2,670
- Reaction score
- 814
- Points
- 113
In this article, you will see possible reasons why a chargeback can occur, and what a refund is.
Chargeback – the process of returning funds to the buyer's card from the merchant, in the event that the buyer presented enough evidence to consider this transaction a fraud.
In the case of chargeback, the merchant loses the goods sold, the payment and commission of the payment, as well as the fine paid by the seller to the bank in the case of each chargeback.
List of reasons why a refund request can be submitted, if it is proved that:
1. The cardholder did not receive the transaction details.
2. The transaction was not approved by the cardholder.
3. The account number doesn't match.
4. The transaction passed more than once by mistake.
5. The transaction details were not printed out.
6. The refund was not carried out at the buyer's request.
7. Authorization was not performed.
8. The buyer did not receive the product or service.
9. The card was not used until the expiration date.
10. Services were not fully provided
11. Error in the payment amount field.
12. The transfer confirmation statement is incorrect, incomplete, or incomplete.
13. The payment was made for an incorrect amount.
14. In fact, the product is different from what was promised earlier.
15. Fake transaction.
16. The transaction execution time is longer than set by VISA or MasterCard.
17. The buyer's signature was not received.
18. The signature sample on the map itself is missing.
19. The signature on the card and on the invoice are different.
20. The merchant changed the transaction amount without permission.
21. The seller knowingly participated in a fraudulent transaction.
22. Invalid date and time of the transaction.
23. A disputed transaction made through an order by phone or email.
24. The seller refused to accept the goods back.
25. The transaction was not successfully canceled (refund).
26. The customer is dissatisfied with the product or service.
27. The transaction was accidentally approved by the issuing bank, but later it turned out that this was a mistake, for example, there were not enough funds or the card was already blocked.
28. In case it turned out that the seller was incompetent.
Refund is a refund of funds from the seller's account to the buyer's account, which is initiated by the seller himself. In this case, the bank or processing company is not involved in resolving disputes between the seller and the buyer, they agree among themselves. The seller makes the decision on the refund itself. In this case, they do not pay any fines to the bank, but they lose the commission for the transfer and conversion.
No one is immune to chargebacks, so the seller strives to minimize both chargebacks and refunds. Subsequently, if the number of chargebacks exceeds the level allowed by the bank, the trading account may be closed. Therefore, if the seller is threatened with a chargeback, then it is more profitable for the seller to get out of this situation by making a refund voluntarily, that is, a refund. Even if he loses the goods, the funds received for the goods and the payment of commissions, at least he does not pay a fine to the bank and does not spoil his reputation with chargeback. Although the bank also takes into account the statistics of refunds, it is not so critical.
All about chargeback!
Chargeback – the process of returning funds to the buyer's card from the merchant, in the event that the buyer presented enough evidence to consider this transaction a fraud.
In the case of chargeback, the merchant loses the goods sold, the payment and commission of the payment, as well as the fine paid by the seller to the bank in the case of each chargeback.
List of reasons why a refund request can be submitted, if it is proved that:
1. The cardholder did not receive the transaction details.
2. The transaction was not approved by the cardholder.
3. The account number doesn't match.
4. The transaction passed more than once by mistake.
5. The transaction details were not printed out.
6. The refund was not carried out at the buyer's request.
7. Authorization was not performed.
8. The buyer did not receive the product or service.
9. The card was not used until the expiration date.
10. Services were not fully provided
11. Error in the payment amount field.
12. The transfer confirmation statement is incorrect, incomplete, or incomplete.
13. The payment was made for an incorrect amount.
14. In fact, the product is different from what was promised earlier.
15. Fake transaction.
16. The transaction execution time is longer than set by VISA or MasterCard.
17. The buyer's signature was not received.
18. The signature sample on the map itself is missing.
19. The signature on the card and on the invoice are different.
20. The merchant changed the transaction amount without permission.
21. The seller knowingly participated in a fraudulent transaction.
22. Invalid date and time of the transaction.
23. A disputed transaction made through an order by phone or email.
24. The seller refused to accept the goods back.
25. The transaction was not successfully canceled (refund).
26. The customer is dissatisfied with the product or service.
27. The transaction was accidentally approved by the issuing bank, but later it turned out that this was a mistake, for example, there were not enough funds or the card was already blocked.
28. In case it turned out that the seller was incompetent.
Refund is a refund of funds from the seller's account to the buyer's account, which is initiated by the seller himself. In this case, the bank or processing company is not involved in resolving disputes between the seller and the buyer, they agree among themselves. The seller makes the decision on the refund itself. In this case, they do not pay any fines to the bank, but they lose the commission for the transfer and conversion.
No one is immune to chargebacks, so the seller strives to minimize both chargebacks and refunds. Subsequently, if the number of chargebacks exceeds the level allowed by the bank, the trading account may be closed. Therefore, if the seller is threatened with a chargeback, then it is more profitable for the seller to get out of this situation by making a refund voluntarily, that is, a refund. Even if he loses the goods, the funds received for the goods and the payment of commissions, at least he does not pay a fine to the bank and does not spoil his reputation with chargeback. Although the bank also takes into account the statistics of refunds, it is not so critical.
All about chargeback!