What is Debit Card Chargeback?Posted by Chargeback Expertz on November 2nd, 2017 Like a credit card chargeback, a chargeback from a debit card is a reversal of the transferred funds. A chargeback requires the consumer to directly contact their bank. Their bank then contacts your bank, and the money is returned to the consumer. The Chargeback Cycle Chargeback is one of the worst words for merchants today. While they are a huge pain, chargebacks are a part of any business that accepts debit and credit cards. Originally chargebacks were used to protect consumers from charges made fraudulently, along with keeping merchants accountable and honest. However, today chargebacks are used by many more people and can feel like a vendetta. To start achargeback a customer has to go their bank, and file their dispute against any transaction that is false or they were not provided service for. Their bank or the issuing bank will issue them a temporary credit for the amount of the transactions. The issuing bank then informs the credit card company about the chargeback. The credit card looks into the transactions and contacts the business’s bank. The business’s bank contacts the processing company, which removes the money from the business’s bank account. The business is then contacted about the chargeback. At this point, there is the choice to just allow the chargeback to take place, or you can fight the chargeback. Avoiding Chargebacks The simplest solution to not having chargebacks is to not accept debit and credit cards. However, in today’s modern world you have to accept debit and credit cards. At the same time, there are some things that you can do to limit the amount of chargebacks you receive. Like it? Share it!More by this author |