What Happens if You Lose a Chargeback?

If you are a small business owner, freelancer, or side hustler selling goods or services, receiving a chargeback is possible. If you are a small business owner, freelancer, or side hustler selling goods or services, receiving a chargeback is possible.

Plus, chargebacks are not always from genuine customer complaints, and many times, they can be fraudulent or even due to the customer’s lousy memory. Plus, chargebacks are not always from genuine customer complaints, and many times, they can be fraudulent or even due to the customer’s lousy memory.

What is a Chargeback?

A chargeback is not a refund. Although both are technically a result of a purchase dispute, there is an enormous difference. A refund is paid back directly from the merchant, while chargebacks are filled and handled by the customer’s bank or credit card issuer.

Can I Appeal After I Lose a Chargeback?

If you lose the initial chargeback claim, you may appeal directly to your service provider. To do this, you must be able to prove your case with irrefutable evidence. However, keep in mind that this process can be tedious, and in most cases, the chances of winning are usually negligible.

What Can You Do to Prevent Chargebacks?

As mentioned, merchants do not have many protections against chargebacks, as the system is designed to protect the customer. However, it is recommended that every business have their refund policy displayed on their premises and website, as this may come in handy when appealing a chargeback.

The Initial Chargeback Investigation Process

The system has well laid down rules and guidelines to help banks and issuers carry out the investigation. Here is how the process goes: the customer calls the bank and makes a complaint, the bank or card issuer gathers evidence, and the bank or card issuer gathers evidence.

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