Money going back.
WHAT A REFUND IS
The merchant returning funds voluntarily.
WHAT A REVERSAL IS
A transaction cancelled before settlement.
WHAT A CHARGEBACK IS
The payer's institution forcibly returning funds after a dispute.
WHY CHARGEBACKS MATTER MOST
They carry fees, damage your standing, and can end your ability to accept cards.
WHAT CAUSES THEM
Fraud Goods or services not received Not as described Duplicate or incorrect charges Recurring charges the customer did not expect
WHAT THAT LAST ONE INDICATES
A subscription problem, not a fraud problem.
WHAT REDUCES THEM
Clear descriptors on statements Prompt fulfilment and communication Easy cancellation Responsive support Refunding rather than disputing borderline cases
WHY REFUNDING IS FREQUENTLY CHEAPER
A chargeback costs the fee, the goods and the ratio, even when won.
WHAT A CHARGEBACK RATIO IS
Disputes as a proportion of transactions.
WHY IT MATTERS
Exceeding scheme thresholds triggers monitoring programmes and penalties.
WHAT TO MONITOR
That ratio, monthly.
WHAT TO RETAIN AS EVIDENCE
Delivery confirmation, communications, and terms accepted.
