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What is a chargeback, and how do you manage it?

A chargeback is a forced reversal of a card payment initiated by the cardholder's bank, usually after a dispute. Too many chargebacks raise costs and can put a merchant account at risk.

Why chargebacks matter

Beyond the lost sale and fees, a high chargeback ratio can trigger card-scheme monitoring programmes and threaten your ability to process. High-risk verticals are watched especially closely.

How to reduce chargebacks

Clear billing descriptors, responsive support, fraud screening, 3-D Secure and good record-keeping all reduce disputes. Representment - submitting evidence to contest invalid chargebacks - recovers revenue when disputes are unfair.

Chargeback tooling

PlatinumEdge includes chargeback management and fraud tooling so high-risk merchants can prevent disputes, respond to them, and protect their approval rates and MIDs.

Related
FAQ
What is a good chargeback ratio?

Card schemes generally expect chargeback ratios well under 1% of transactions. The exact thresholds and monitoring programmes vary by scheme and risk category.

Can I contest a chargeback?

Yes. Through representment you can submit evidence (delivery, authorisation, terms accepted) to contest a chargeback you believe is invalid and potentially recover the funds.

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