A consumer who pays with a credit card can reverse the payment for up to 9 months. That’s a safe and reassuring thought for the buyer. What if the product arrives broken, or never shows up at all? A chargeback allows the consumer to get their money back.
For merchants, though, chargebacks are far less fun. Not only do you lose the payment, but you’ll also have to cover the additional chargeback fees (up to €50). So yes — chargebacks always cost money, and often a customer too.
The good news: a satisfied customer won’t ask for a refund. Make sure to deliver on time, offer a quality product, and handle complaints properly. And remember, unhappy customers often contact the seller first. So don’t avoid those conversations — they can save you a lot of trouble.
Most chargebacks happen because a customer is unhappy with the service, doesn’t recognize the transaction, or suspects fraud. There are multiple reasons to request a chargeback as a buyer.
The best way to avoid chargebacks? Make sure there’s no reason to request one. Use clear terms and conditions that comply with distance selling laws. And always aim to resolve disputes together with your customer. Be easy to reach — that alone can prevent a lot of claims.
Common sense goes a long way. Is the order linked to a PO box or does it involve an unusually large amount? Contact the buyer before shipping. Buckaroo’s anti-fraud tools automatically flag suspicious activity — like multiple payment attempts from the same IP address, or cards from different countries.
If something feels off, don’t ignore it. Double-check before you ship. For more guidance, check out our credit card safety tips (download).
Another smart way to reduce fraudulent transactions is by enabling 3-D Secure on credit card payments. This adds an extra verification step for the cardholder — like a code from their phone. It significantly lowers the chance of fraud. At Buckaroo, all credit card payments include 3-D Secure by default.
Feel free to contact us for advice or questions about chargebacks.