The business world has long taught that the customer is always right. But, sometimes, customers like to use this to their advantage. 

Many customers have discovered the use of chargebacks to receive their money back for a purchase. If you’re new to business, you may wonder, “What is a chargeback?”

In short, chargebacks exist to protect customers from erroneous charges on their credit statements and bank accounts. However, customers can also use chargeback fraud and other techniques to take money from your business. 

That’s why your business needs a chargeback protection strategy. You can use these strategies to dispute chargebacks and keep the money for your business. 

How does this work? If that’s what you’re wondering, keep reading! We’ll explain how to do this in the guide below. 

How a Chargeback Works

At first sight, a chargeback often looks like a refund. However, there are some essential differences between these two processes. 

First, a customer almost always initiates a chargeback. They also issue this charge through their banks, rather than directly with your company. 

There’s also a difference in what happens to the original funds. The issuing bank collects the funds from your merchant account and holds them until the process resolves. So, the bank controls the funds. 

Finally, chargebacks tend to take longer to resolve than refunds. The longer timeframe usually exists because the issuing bank serves as the dispute’s mediator. 

How to Dispute Chargebacks

Many businesses implement policies to avoid the possibility of chargebacks. However, no matter how industrious you are, you’ll likely face a chargeback sometime. When that happens, your business will have to respond. 

When your business receives a chargeback notification, decide whether it’s a legitimate complaint. Search your records and investigate the charge. Look for any sign that this complaint may be suspect.

If the charge seems suspicious, relay the information to your merchant services provider. When this happens, the provider works with the issuing bank to get to the heart of the problem. 

If you determine the charge is a case of friendly fraud, contact the customer. You may be able to reach a resolution with them and convince them to retract the chargeback. 

There are several ways to prove that your transaction was legitimate. These include providing invoices, receipts, confirmation numbers, and shipping details. 

The Role of the Best Chargeback Protection Companies

One of the best resources against chargebacks is a chargeback protection company. These companies offer remedies for various types of chargebacks, such as a PayPal chargeback. 

Each company offers different types of services to protect your business. So, find the best service to ensure your business can resolve a chargeback. 

Find the Best Chargeback Protection Strategies for Your Company

As you can see, chargeback protection is critical for any business. We recommend using a chargeback protection service to help you protect your company. These services can help you navigate the chargeback process and dispute suspicious charges. 

So, explore the best chargeback protection for your company! These strategies can save your company money and protect your reputation.

We hope you enjoyed this article! If so, check out our other financial content today. 

Jane