10300 49th St N #427, Clearwater FL 33762, USA
+1 855-465-4723

Understand Chargeback Abuse and How to avoid them


When a merchant actively uses digital methods for his payments then he must pay attentions to chargebacks and disputes. Chargeback ratio defines the sincerity of the merchant and his business; however, some consumers use the chargeback as a way of making profits at trader’s loss, which leads to Chargeback Abuse.
Chargeback is introduced to the buyers to get a fair deal when making online/card payment by refunding the money back to the buyer in case of sharp practice. But when the customers try and act smart by doing frauds with the merchants, we call it Chargeback Abuse.
In this article, we will discuss the Chargeback Abuse in-depth and also provide tips to the traders or merchants to avoid them.

How to Keep the Business away from Chargebacks?

If you are a merchant or a trader then the number of chargebacks and disputes are really important to understand. And when it comes to chargeback abuse, you must know the tips to avoid such issues.

  • Stay Away from Consumer Disputes
    • The rules are designed to favor the consumers.
    • Being a Merchant or Trader, you should try and avoid the disputes as much as possible.
    • Talk to the customer and get a middle ground for your issue.
    • Avoid the dispute and keep your customers on good terms.
  • Provide the Services as Conveyed
    • Do not over-sell your items and keep it as genuine as possible.
    • Sometimes, the buyer may feel cheated after receiving the package, as it was not as good as it was presented earlier.
    • Clearly explain your commodities and policies to the consumer.
    • Try to provide most of the information, as these measures will definitely help you avoid disputes.
  • Always Reply to the Retrieval Request
    • Some chargeback reason codes provide a time limit to the trader to act upon a retrieval request.
    • The Chargeback Reason Codes state whether the refund should be instant or kept at hold until the completion of the procedure.
    • You must educate yourself on the reason codes; try to collect supporting evidence to prove your case.
  • Stay Updated
    • Keep yourself updated with all the new laws and policies for the chargebacks and disputes.
    • Use the latest technology; this could help you prevent Chargeback Abuse to a large extent.
    • Make sure you keep the documentation of the purchases and update them periodically
    • Make your transaction system chargeback proof and advance your security whenever you feel necessary.
  • And lastly and most importantly, create a list of all fraudulent and suspicious customers and blacklist them. Having your own Chargeback Abuse database can come handy while dealing with frauds.

If you are facing any Chargeback Abuse then you can reach Chargeback Expertz. We will help you with all your concerns and get you through it.

How can Chargeback Codes be Abused by Consumer?

As we discussed, the consumer can use the chargeback to gain at Merchant’s expense. This is distressing for both the Trader and Consumer. The trader can lose the hard earned money and the consumer can be blacklisted.
In this list we are mentioning some general Chargeback Abuse methods. Examine the list and keep your transaction protected.

  • Friendly Fraud – Sometimes the users simply do not know about the procedure and instead of directly asking for refund or replacement from traders, they file a dispute. This generally happens when the customer simply does not know about the other method to get a refund.
  • The consumer has forgotten the purchase and asks for chargeback when the product is received.
  • Another family member made the purchase and the owner of the card was never informed about the transactions.
  • Lastly, the purchaser simply has the intention to get the item for free

If you are facing one of the above-mentioned abuse or any other Chargeback Abuse and looking for a way out, then you can reach out to the Chargeback Expertz by calling at our toll-free number. Our experts will help you comprehend the chargeback and introduce to all the latest chargeback reason codes so that you can manage your business with ease.

Email us anytime!

Email customer service 24/7

Call us anytime!

Reach customer care 24/7 at 855-465-4723

Related Posts

Chargeback Prevention