There are different types of credit card chargebacks therefore you need chargeback defense. There are two types of chargebacks, which are recognized by the financial institutions and the credit card issuers as unauthorized charges. Chargebacks occur when the consumer fails to make a purchase on a credit card account. When these happen, the financial institution or the card issuer will contact the cardholder and try to recover the money. This article is talking about the chargeback type: Chargeback Defense. Chargeback: The merchant initiates the chargeback. The merchant sends the dispute letter to the credit card company. Chargeback Financial Services usually carries out further investigation of the particular case with Chargeback Defense. Identification of causes for chargebacks: Different financial institutions and card issuers have different reasons for chargebacks. Most of the time, the chargebacks take place because the merchants are unable to process the transactions as they should. The time of delay in processing the transaction may be an issue for the merchant. Some of them want to get rid of the chargebacks as soon as possible. The other reason for chargebacks may be non-sufficient funds (NSF) issue by the bank. Chargebacks are likely seen in businesses that are considered high risk such as Continuity Subscription Merchants.

how chargeback defense works

Chargeback Response: A Chargeback Defense attorney takes the chargeback case to the court. In the court, the chargeback defense lawyer makes the request to the court to reduce the amount of damages that the bank has to pay to the client. The court accepts the request and discounts some percentage from the original transaction amount. The bank cannot refuse this request from the client. If the customer has enough money in his account then the processor can accept the transaction. Handling disputes: Many customers are faced with chargebacks every day. There are many myths and stories that might go into their minds about what is a chargeback and what is not. To avoid these misunderstandings, the merchants should always handle the disputes in the best way possible. There is no need to get into the argument about the charges and whether you were deceived by the merchant or not. The Chargeback Defense attorney will help you get the statements out of the dispute and will make the final decision about the damages. Other than the chargebacks, there are other problems like fraudulent accounts that might happen. This is the biggest reason why the merchants need to keep good records about the past transactions. Sometimes the merchants get stuck with the wrong reason codes. When you enter the incorrect reasons for the chargebacks, then the processor will consider it as an unauthorized transaction. These chargebacks and unauthorized transactions are one of the main reasons for chargeback defense. To prevent this problem, make sure that you enter the correct transaction codes. We offer merchant account solutions.