A Detail Guide Chargeback Limits

Chargeback limits are the maximum amount that a cardholder can be charged for a single purchase, or the total amount that can be charged in a day. These limits are imposed by card issuers to protect cardholders from fraudulent or unauthorised charges.

Why do chargebacks occur?

There are a number of reasons why chargebacks can occur. Some common reasons include:

The cardholder didn’t recognize the charge on their statement

  1. The cardholder didn’t authorise the charge
  2. The merchant didn’t deliver the goods or services as promised
  3. The quality of the goods or services was not as expected

What are the consequences of chargebacks?

Chargebacks can be costly for merchants. Not only will the merchant be charged a fee for the chargeback limits, but they may also lose the merchandise or services that were purchased. In severe cases, repeated chargebacks can lead to a merchant’s account being suspended or terminated.

How can I avoid chargebacks?

There are a few things that merchants can do to avoid chargebacks. Some tips include:

Get authorization for every purchase

  1. Include clear and concise descriptions of goods or services on statements
  2. Respond quickly to customer inquiries and complaints
  3. Keep accurate records of all transactions

What is the chargeback process?

If a cardholder believes that they have been the victim of fraud or unauthorised charges, they will contact their card issuer to dispute the charges. The card issuer will then investigate the claim and make a determination. If the card issuer finds in favour of the cardholder, they will reverse the charges and the merchant will be responsible for the fees.

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