Chargebacks are painful and expensive. Billions of dollars are lost in chargebacks by businesses every year, and in 2017, the average dollar in chargebacks cost merchants $2.40. That means for $500 in chargebacks, you could be paying up to $1,200 in fees! Now expand that number over every chargeback and multiple years in business, and it’s easy to see why this is a big issue for many businesses. Chargeback costs include: The immediate revenue of the lost sale. The possibility of forfeited merchandise. The non-refundable chargeback fee charged by your acquiring bank. Your bank charges these fees due to the administrative costs of reversing the transaction. You also risk your business reputation and ability to accept credit card payments when incurring chargebacks fees. If you rack of a high amount in a short period of time, credit card networks may temporarily block you or your bank may restrict certain financial…
