Businesses often face something when they handle credit card payments. This is known as a chargeback and can create a lot of added expenses that you may not even be aware of upfront when you set up your merchant account. Accepting credit card payments is great, but if you do not know the risks that go along with it you can find yourself in trouble.
As a merchant you need to understand common reasons as to why you will actually receive a chargeback. The first reason and most common reason you will get a chargeback is due to fraudulent transactions. When a credit card is used without the consent of the holder of the card, you are going to be held responsible for this.
Another common reason is due to the fact that there was no item received by the purchaser. When an item is not received for one reason or another, there is going to be a chargeback that comes back. The merchant is again held responsible for this issue.
When you have a merchant account through a company such as Solidtrustpay you will be able to do some reason and fully understand the chargebacks and the risks that you face with accepting payments over the Internet via credit card. Companies such as solid trust pay can work with you to help you gain an understanding over the chargebacks all the way through. Chargebacks will absolutely tear through your profits if you are not careful.