Mastering
Glossary
A chargeback is a protective financial mechanism initiated by the issuing bank, where funds are withdrawn from a merchant’s account and reimbursed to the cardholder.
chargeback
and
Glossary
Dispute is a customer's challenge to a transaction on their account. It often occurs when a cardholder does not recognize a charge, is dissatisfied with a purchase, or suspects fraudulent activity. If not resolved promptly, a dispute can lead to a formal chargeback process.
dispute
management is vital for all businesses to mitigate risks and safeguard against potential losses.
An effective approach to handling chargebacks involves leveraging cutting-edge technology, data-driven insights, industry knowledge, and an understanding of intricate details within the process.
At the forefront of developing a robust dispute management strategy is a thorough understanding of the chargeback process, including industry standards, various
Glossary
Standardized codes used by card networks to categorize the reasons for chargebacks, helping streamline the dispute process.
reason codes
used by different
Glossary
Credit card networks facilitate communication between issuing banks and businesses, authorizing and processing transactions, defining terms, and moving payments between customers, merchants, and banks. They enable efficient credit card transaction processing.
card networks
, and dispute triggers.
Chargebackhit system prevents disputes and protects revenue by providing enriched transaction information to issuers and customers in real-time. prevention strategies and response mechanisms by exploring the stages of the chargeback process, the process flow, and potential impacts.
The chargeback rate measures the proportion of a merchant's total transactions that result in chargebacks. It is calculated by comparing the number of chargebacks received to the overall number of processed transactions. chargeback rates against industry standards allows businesses to take preemptive actions. The alerts inform merchants when approaching critical Glossary
Thresholds refer to the predefined levels of chargeback activity that trigger alerts, allowing merchants to take action to prevent chargebacks before they become a significant issue. thresholds set by card networks, allowing timely intervention. This approach helps maintain healthy chargeback rates, avoid Glossary
Fines or restrictions imposed on merchants by card networks or acquirers for excessive chargebacks or non-compliance with regulations. penalties , and enhance overall financial stability and operational efficiency.