Merchant Chargebacks

Merchant chargebacks – the return of funds to a customer that has made a credit card purchase.

Merchant chargebacks occur when a cardholder disputes a credit card transaction with his or her credit card issuer. The card issuer will then initiate a chargeback against the merchant account. The amount of the disputed transaction is immediately withdrawn from the merchant’s bank account, and the merchant has 10 days in which to dispute the chargeback with proof of purchase, signature, proof of delivery, etc. A chargeback fee is usually assessed to the merchant on top of the actual transaction. See also retrieval request.

A merchant business that receives high merchant chargebacks will typically be labeled as “high risk” merchants by credit card processors. High risk merchants will subsequently have their merchant account terminated due to their “high risk” status.

If your high risk merchant account was terminated due to high chargebacks, contact today at 800-357-001 to learn about how our high risk merchant services can help your business. offers consultations to high risk merchants across the United States to help reduce merchant chargebacks and ultimately increase profitability.

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