The 4 Main Reasons for Credit Card Chargebacks

In order to prevent credit card chargebacks, you must first know the main causes:

Fraudulent Transactions

The most common cause for chargebacks are fraudulent transactions. This happens when the credit card is used without the authorization of the cardholder.

Credit Not Processed

Another common type of chargeback occurs when customers may have returned the merchandise to the merchant and requested a refund, but said the money was not posted to their account. 

Item Not Received

This is one of the most commons reason for chargebacks today. This happens when the customer did not receive the item for which they paid by credit card. 

Technical Problems

Chargeback requests can also occur due to technical problems during the payment process. Technical problems between the issuing bank and the merchant may lead to cardholders being charged twice for the same transaction, known as duplicate processing. Problems with the authorization process can also lead to account being charged, even if the transaction was declined.

The best way to prevent and handle chargebacks is to use a credit card processor who understands you, your business, and your industry, and can offer expert guidance. The Chosen Payments team is available to help you out with any questions you may have, so please feel free to contact us at (855) 424-6736 or fill out the form below:

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