If there is one word most Internet marketers quiver at the sound of, it is chargebacks. A chargeback is a dispute over a charge -usually an unauthorized or fraudulent charge- between the customer and the company. The merchant must pay back the entire amount along with any credit card fees. This amount is automatically deducted from your merchant account. There are three main problems about chargebacks that concern the merchant:
- they lose the payment -and also the inventory if it was sent,
- the fees associated with every chargeback are between $15 to $25, and worse of all
- chargebacks don’t look good, and you may lose your merchant account.
- Merchant services are pretty finicky; they do not just hand out accounts to anyone.