What exactly is a CHARGEBACK??

  1. Hi,

    Can someone tell me what exactly a chargeback is? I am new to selling one eBay. Is it when someone doesnt have funds to pay?

  2. A chargeback is when someone disputes the transaction through their credit card company.
  3. and when they dispute the transaction, your merchant account (bank) automatically deducts the funds from your bank account. This is whether you are in the right or wrong (as the seller).

    The merchant will then send you a letter stating who is disputing your charge and why. You then have a certain number of days to respond to the merchant account with proof of delivery and authorization for payment.

    Not a fun position to be in if you are the seller receiving the chargeback.
  4. I personally have had my own merchant account and in years of having that thing, NEVER won a chargeback case no matter how solid my proof was.
    No amount of delivery confirmation or signed credit slips could do the trick.

    Even letters from customers saying how happy they were with their item (then the following month refusing to pay their CC bill and claiming fraudulent charges!)

    I could have had their signature in blood officially selling me, who they perceived obviously as the devil, their soul and Amex or other card merchants could have cared less! lol

    I hate hate hate paypal, but I hate MERCHANT PROCESSORS even worse!! You just THINK Paypal is bad. At least they try to give the seller some benefit of the doubt, even if a very small amount.

    In issues of chargebacks, they will always find for the buyers with a direct merchant account.
  5. mlowran - that's PRECISELY the reason I only use PayPal (though I hate them, too!) and Not merchant accounts. I've heard one too many horror stories....