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What is a chargeback? Will chargebacks affect my merchant account?

What is a chargeback? Will chargebacks affect my merchant account?

When a cardholder disputes a transaction on an account, the bank where the credit card was issues puts the funds on hold until it can investigate. If investigators find fraud was involved in the transaction, the bank takes back the full amount PLUS a fee.

While banks understand that mistakes happen, too many chargebacks indicate to them that the business may be operating in an untrustworthy fashion. Too many chargebacks can lead to a business going from low-risk rates to high-risk rates and fees. It can also prevent them from being able to accept credit card payments at all. Landing on the Terminated Merchant List (TML) can torpedo your business, particularly if you’re highly depended on credit card purchases.

 

 

 


First Financial

First Financial ® Corporate Headquarters 2850 Womble Road Suite 100-604 San Diego, CA 92106

Client Service Center: Main: 1-800-315-7791 Fax: 1-800-215-0217 (Monday–Friday 5:00am–6:00pm Pacific or 8:00am–9:00pm Eastern)

Merchant Services / High Risk Merchant Accounts: 1-800-950-0212 Fax: 1-800-215-0217

 

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