Chargebacks refer to the returning or refunding of funds from a sale transaction to a consumer. The issuing bank will withdraw the fund from the merchant?s account and return it as a credit to the consumer. Merchants who exceed a 1 percent chargeback rate can have their merchant processing accounts terminated.
We estimate the time it takes to process a chargeback is over 20 minutes per report. This can cost us anywhere from $10 to $25 per report in labor alone.
? Sean, Senior Accounting Manager
The SparrowOne team of specialists help our clients find the best electronic payment processing relationships for their businesses. When an increase in chargebacks occurs, SparrowOne works in tandem with our client to return the account back to good health.
SparrowOne chargeback options:
- Chargeback education program for your team
- Review the option of Chargeback protection or insurance options
- Engage in the review of your chargeback process to optimize your results
- Complete review and implementation of fraud rules to protect impact to chargeback rate
Recently, SparrowOne worked with a travel client to reduce a dramatic increase in chargeback based upon fraudulent charges. Working with the client and the processor, we were able to successfully reduce their rate under the 1% threshold.