A chargeback for credit card payments is nothing more than a return debit in the traditional banking system. A chargeback is initiated by the credit card holder. The credit card holder must submit a notification to the card-issuing bank (issuer). The main reasons are: Firstly, misuse of credit card data and fraud, or to other non-receipt of goods and services which have been ordered lawfully with the corresponding credit card by their owners.
A merchant who is faced with a chargeback, usually finds out about it in his payment gateway or by email from his acquirer. Affected merchants should take a close look at the transaction immediately after notification. If the merchant has provided his service properly, he should enter an objection – the so-called representment. The representment process should be taken very seriously, handled with care and attention to detail. The representment must initiated not later than 30 days after the chargeback. The merchant’s aquirer will give support in the prodedure.
Alexander Berrai from Deutsche Payment goes one step further. “We advise our customers at the beginning of the business relationship, how they already can minimize the risk of chargebacks in advance. Neverless, if it should happen in individual cases, we guide our customer through the whole case.”