As explained above, the chargeback process is always started by the consumer. You, as a business, are unable to start the process yourself as it’s a tool intended to be used by consumers only. The reasons a chargeback may occur are numerous. Sometimes you can challenge them if it appears that there is a wrongful claim of an incorrect transaction, whereas other times you can’t. 

One of the most common reasons for someone to start the process is suspicion of fraud, where the consumer fears their card details have been used without their knowledge to purchase from your business. These situations are serious as you have a responsibility to protect your customers from fraud, so the incidence of fraud can be detrimental. You can, however, put things in place to protect yourself against fraud.

Doing things like conducting extra checks for online purchases, querying a transaction directly with a customer, and using more secure card machines in your shop goes a long way in limiting the chances of fraud.

Other reasons for chargebacks being initiated include damaged goods, shipping issues and customer dissatisfaction. When these things occur you can sometimes have a case for challenging the chargeback, which we will explore further down this page. You are, however, almost certainly better off trying to ensure that chargebacks don’t occur in the first place. 

When it comes to issues with your product or service, you can do things like track shipping, add additional packaging, get your shipments insured, and ensure your product descriptions are accurate on your website. All of these things either limit the chances of chargebacks or ensure that you’re covered should a chargeback occur.