Credit Card Chargeback Causes – Every Credit Card is distributed by a bank, which is also known as the issuing bank, and the chargeback is customer safety protocol provided by the issuing bank. These protocols are there to stop any fraudulent transaction in the customer’s statement. This is also called chargeback reversal. This benefit is available for only Credit Card users.
In this article blog, we will discuss Credit Card ChargebackCauses. But there is a dark side to these chargeback rules. These chargeback reason codes were designed to stop the merchant to cause any fraud. Instead, it created an opportunity for the customer to get things for free and cause frauds.
Common Credit Card Chargeback Causes – Chargeback Expertz
It is very important for a Merchant to know about the different Credit Card Chargeback causes. This could help them to avoid chargeback and fight against the chargeback. Some common causes of the chargeback are given below. You can carefully read these causes and organize your business chargeback proof.
The Fraudulent Transaction is the reason for the introduction of chargeback laws and chargeback reason codes. When the merchant tries to cause any fraud the chargeback is a rescue option for the customer to get their money back.
- When the merchant delivers a faulty item to the customer and refuses to replace it or refund the money.
- The customer can then apply for a chargeback.
- The issuing bank will immediately take action and give the merchant a specific time to respond to the chargeback query.
It is important to notice that the customer does not need to provide any evidence in order to file a chargeback.
Now, a credit card is a simple magnetic card that is used only with an electronic device. It is common to face a technical glitch while using the credit card.
Suppose while making a transaction, the user gets an unidentified error and at the same time the money is also deducted from the card but the item is still not purchased. Such cases lead to chargeback when the user is unable to identify the respective transaction. In this case, there is no fault of the customer or the merchant.
Credit Card not Processed
When the customer tries to return an item he/she expects a refund right away. Sometimes, these refunds take time to process and in order to get their money back wthout the wait, the customer files the chargeback.
One of the Credit Card Chargeback causes is the duplicated charges. After making a payment the customer’s account shows two transactions when just one is made.
In such case, you need an expert to help you with the issue. For such Chargeback Management, you can contact the Chargeback Expertz anytime.
Customer Unable to Cancel Subscription
- In case a user has subscribed to certain services provided by a company.
- Now instead of canceling the services the user simply files for the chargeback. This is also an example of friendly fraud.
- The chargeback can be really harmful to a business.
- As a merchant is allowed only a certain number of chargebacks in a month, upon exceeding that number of chargebacks the business might face some serious fine.
Now the situation leads to Credit Card Chargeback. Credit Card Chargeback causes can be reduced if the merchant tries to take some effective steps. You can also take advice from an expert, so don’t wait and ring Chargeback Expertz.
There is a chance that the item purchased by a customer is damaged during the shipping process. This can result in the customer filing the chargeback against the company.
To avoid such Credit Card Chargeback Causes, you can try to make the shipping smoother. Try to deliver intact goods without any damage. Moreover, keep the track of the shipment until it is successfully received by the customer.
The customer is Unable to Recognize the Transaction
When the month end starts everyone starts checking their credit card details. And generally, some of the purchases made by the user are long forgotten by then. While checking the statement of that month the user may not identify a purchase and as a result put the transaction under the chargeback.
Also, in cases when another family member uses the card to purchase an item and the original cardholder does not recognize the transaction, he/she might put the case under chargeback.
Need Help with Chargebacks? – Chargeback Expertz
After getting a brief on common Credit Card Chargeback Causes, you can create your preventive steps to overcome the chargeback issues. But if you need an expert opinion then feel free to contact the Chargeback Expertz at the toll-free number +1(855) 465-4723.
We are also available on Skype chat.
Furthermore, if you decide to fight against the chargeback we can also help you with the Representment.