In addition to knowing how to protect yourself against chargebacks, it’s always good to know how you may react when dealing with a chargeback claim. Undoubtedly one cannot dispute that chargebacks are annoying and can be an inconvenience for any merchant.

The whole concept of the chargebacks first came into place to protect the consumer. However, in recent times, the world isn’t just black and white. Most consumers file chargeback forms due to the simplicity of it rather than contacting the merchant’s customer support when a complaint arises. It’s safe to say that knowing your chargeback rights is vital.

What are reason-codes?

A reason-code is a 2-4 digit code that is provided by the bank involved in a specific chargeback to classify the reason for the contest. Reason-codes may differ for each case.

Reasons for filing a chargeback may vary since not all merchants sell or provide the same service. Even so, there are certain reason-codes in place for such occasions that MasterCard and Visa have established.

A waiting period of 15 days

In case the consumer isn’t happy with the product you’ve provided and returns it within the specified time frame, the consumer cannot file a chargeback request earlier than 15 days and as a result that gives the merchant enough time to remedy any disputes between him and the customer.

Late delivery

Chargeback refunds do not include any form of compensation or cater to any shipping costs that exceed the purchased amount. Disregarding the compensation the consumer would like, the amount should never exceed the purchase price of the product or service.

Purchase price only

In the case when the product arrives after the shipping date, the customer cannot immediately file a chargeback and should always attempt to contact the merchant first and return the item.

Major credit card systems have procedures in place to analyse purchases, chargeback claims, and customer history. Most acquirers review and discharge any invalid chargebacks without the merchant ever being aware. Most of these credit card companies also have specific compliance rules set for every merchant to ensure that both the merchant and credit card companies are protected.

Throughout the whole chargeback process, battling invalid chargebacks is more than a right, one might consider it a responsibility. By the end of this article, you will have a better understanding of how to best defend yourself against chargebacks, and discourage any future illegi