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What are the Types of Visa Chargeback and How to Reduce them?


Types of Visa Chargeback – The Chargeback is a powerful tool for the consumer to protect them from the transaction fraud. The chargeback helps the cardholder to keep their money secured in case of any fraud payment at their name. But the chargeback laws are not completely foolproof. There is a possibility that the customer states a genuine transaction under chargeback. And sometimes, the merchant accepts it in order to avoid any further hassle.

This is just one example of how the chargeback can be not that good as it sounds. There are many similar and different types of Visa Chargeback cases possible that defy the security of both merchant and customer.

Then what are the option does a merchant has to secure the business from such frauds? The merchant can hire a professional expert and take the expert’s assistance to face chargebacks. But most importantly the merchant should know about the basic details of the chargeback.

If you are a merchant them you can visit Chargeback Expertz for both expert guidance and basic details about the various disputes. You can read our blogs or call us at the toll-free number to resolve your queries or get an on-call expert.
Here we are discussing the types of Visa Chargeback and their negative effects on a merchant’s business. We will also talk about the preventive measure a merchant can take to avoid a chargeback.

The Three Most Common Types of Visa Chargeback

When the merchant gets a chargeback notification from the acquirer, the first thing is to find out the type of chargeback it falls under. Here are the three most common types of Visa Chargeback that a Merchant and Face.

Merchant Error
This is the genuine case when the customer gets a wrong or faulty product due to the merchant’s mistake. And when the merchant refuses to refund or replace the product the customer should file a chargeback.
Here are some examples that cause the Merchant Error:

  • When the customer do not get the purchased product or service
  • The received goods were broken or faulty
  • The product is not the same as the one projected while making the purchase
  • The merchant is not true to the term and condition
  • Some transaction error occurred while making the payment

How to Prevent Merchant Error?
To prevent merchant error, you can follow these steps:

  • Never deliver a faulty or broken item
  • Track the delivery until it is received by the customer
  • Be true to your product and term & condition
  • Use a secure gateway for the online transaction

If you are facing a high number of merchant error chargebacks in your company. Then it is high time that you get an expert to assist you. Contact the Chargeback Expertz at our toll-free number +1 (888) 901-8653

Chargeback Fraud
This is one of the harmful types of Visa chargeback where the customer’s intention is to take the item for free. The merchant also suffers a loss when such chargeback frauds exceed their monthly chargeback limit.
This year Visa has updated some of their reason codes in order to reduce the number of chargeback frauds. You can read about it in our previous blogs.

How to Prevent Chargeback Fraud?

The merchant needs to be very careful about the Chargeback Frauds. Here are some tricks a merchant can try to avoid the chargeback frauds.

  • Use the most secure payment gateway for your transactions
  • Most payment gateway provides protection against the payment frauds
  • You can also blacklist the customer causing more chargebacks

For more details to secure your business against the chargeback frauds, contact the Chargeback Expertz team.

Friendly Fraud
Most of the chargeback filed are the friendly fraud; this is due to customer’s unawareness. The friendly fraud occurs when the customer directly files the chargeback without asking the merchant for a refund of a faulty item. There could be more such examples that include other types of Visa Chargeback. Unsatisfied customer leads to the Visa Chargeback.

How to Prevent Friendly Fraud?
The merchant should watch out for the Friendly Fraud because it is difficult to distinguish between friendly fraud and chargeback fraud. Here is some preventive measure that you can try:

  • Explain the term and condition to the customer clearly
  • Also, make sure the customer understands the return and refund policies
  • Try to make a healthy contact with your regular customers

If you need help with the Chargeback Representment then contact the Chargeback Expertz at the toll-free number +1 (888) 901-8653. You can also get an expert via Skype.

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