Do you own a business? If yes, then perhaps one area of your business that you’re most concerned about is your payment processing system. Today, every small businesses can accept
credit card payments from customers. However, with cases of credit card fraud ever increasing, both consumers and business owners are warned to take the necessary precautions to avoid possible problems.

What is a chargeback and how can you avoid them?

One of the most common problems about accepting credit card payments is getting charge backs. But what are charge backs? When you accept a credit card payment from a customer, there’s a possibility that the customer can change their mind, or isn’t even the real owner of the credit card. Perhaps the credit card has been stolen and is being used without the real card owner’s consent.

By the time the credit card owner receives his/her billing statement, he or she may dispute these unauthorized charges. Under the Fair Credit Reporting Act, a consumer has the right to dispute unauthorized charges in the account. In this case, when the consumer calls up the bank and advise them about these unauthorized charges, the credit card issuer may move for a reversal of that particular credit card transaction. (more…)