Credit Card Chargebacks
Few need an explanation for Chargebacks, as they are becoming more and more prevalent in our business. However, for those unsure, a Chargeback is essentially when a customer disputes a charge to his or her credit card company and the funds collected are refunded to the customer. MGE has been working extremely closely with Global’s Dispute Resolution Department. Unfortunately, the information provided has not been great news for us. Recurring charges are basically a red flag in the credit card / banking industry. Because of industry standards, these disputes are rarely won. As many are aware, even with proper documentation (a signed agreement), if a cardholder continues to dispute and refute the transaction, there is no way to continue to recover the funds through this channel. That is not to say you as the merchant can’t attempt to collect the funds through small claims court if it makes sense financially. It is important to note that Chargebacks are not a Vendor/Global Payments incident. They are initiated and handled by...
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