The One Thing Merchants Should Know About Chargebacks

The chargebacks game has changed since the EMV shift took place.

In the pre-EMV days, the cardholder could simply claim fraud and receive a refund.

No questions asked. This is no longer the case.

Fraud is actually our lowest chargeback reason and is still in the single digits since BlockChyp launched.

Today we see the most common chargeback reason is the “Misrepresentation of Services” or “Defective Merchandise.”

Consumers have learned that they can no longer deny they were actually there to make the purchase, or deny that it was their card that was used.

They have found a loophole and they are winning.

Please educate your merchants on the importance of terms of services or terms of purchase.

Have consumers agree to these terms at purchase.

Keep records of these agreements and if the consumer does chargeback for this reason, you have proof they agreed to the terms.

When a merchant makes a dispute, make sure they concentrate their argument around the reason for the chargeback, not just that the person was actually there.

The merchant wins if they address the reason, the consumer wins if they address if they were there or not.