Chargebacks are unfortunately a way of life for any merchant who accepts payments via credit or debit cards. A chargeback is a transaction which has been disputed by either the card holder or the issuing bank. Funds from a chargeback are immediately withdrawn from the merchant account to cover the cost of the transaction for the customer. There are many different reasons why a chargeback may be filed. Most commonly chargebacks are associated with fraud where a transaction was made without the card holder’s authorization.

Monitoring and managing your chargebacks is critical for maintaining your merchant account as well as your bottom line since in many cases merchants are out both the product which was sold and the money. It’s also critical because each card brand (Visa, MasterCard, Discover, and AMEX) has rules governing acceptable chargeback ratios are (chargeback ratio is the number of valid transactions to chargebacks).

Merchants are allowed to contest a chargeback in an attempt to prove that the transaction was valid. Chargeback disputation varies greatly depending on how the chargeback was coded. Continue reading further to discover the details of chargeback management. http://www.chargebackprevention.com