How can merchants avoid chargebacks and lower their chargeback ratio?

eData Chargeback management platform allow you to manage and win more chargebacks.

Chargebacks are one of the biggest issues that online businesses face. But what is a chargeback? A chargeback is the term given to the reversal of a transaction because of the customer disputing the transaction. This happens when a customer does not recognize the transaction or claims that they did not receive the item.

Chargebacks are damaging for the business owners as they incur a chargeback fee, not only that but they also negatively impact consumer trust. When there are too many chargebacks, Payment Service Providers and acquirers may decide that they no longer wish to work with you, and pull the plug. Resulting in your business no longer being able to accept payments. The rate which your acquirer will find unacceptable depends on their risk appetite. Before termination of a contract you may be placed on a chargeback program, this is where your business is carefully monitored. This generally happens if you have at least 100 chargebacks, and a ratio between 0.9% and 1.5%.