If I do a refund to my client, will that be seen as a ChargeBack? I don't know why there will be a fee of 29 for a chargeback? Don't creditcard companies only charge 1.5% per transaction? A chargeback should be at most another 1.5%.

Originally posted by qllonceagain
If I do a refund to my client, will that be seen as a ChargeBack? I don't know why there will be a fee of 29 for a chargeback? Don't creditcard companies only charge 1.5% per transaction? A chargeback should be at most another 1.5%.

No, a refund is initiated by you (the seller), a chargeback is initiated by the customer. A chargeback is generally the result of CC fraud, a refund is generally the result of amicably resolved customer dissatisfaction or a genuine mistake.

Chargebacks cost the banks, it's a big inconvenience for them, and for thier customers, and as a result they will probably charge you a fine to 'persuade' you to perform better fraud checks in the future.

gogocode is correct. The only time it is usually considered a chargeback is when a your processor goes into your bank accounr to debit the money to return to the customer.

Most processors have retrieval requests as well. This is notifying you that the customer has requested a refund via the issuing bank. They give you the chance to return the money on your own or to fight it (if possible).

A refund is usually processed to a customer by a void or credit return. It is a merchant-initiated transaction.

If you have processed a sale and your day's batch has not yet settled, you can issue a void on it and save yourself the cost of a credit return.

If the sale has already been settled and you need to refund a customer after-the-fact, a credit return is the only option to protect yourself against a chargeback... and it must be made against the same card that the sale was made to. (and not via some other method like sending a check, etc.)

On the other hand, a chargeback is an issuer-initiatived transaction made by the cardholder or their issuing bank.

There is a hard cost incurred on each chargeback that is processed and this cost needs to be recouped. This is why merchant processors charge a fee when you get a chargeback.

Regarding the 1.5% - not sure where you got that particular figure out but the cost on a typical Internet / e-commerce transaction is quite a bit higher than that.

2checkout.com gives you 48 hours to dispute the chargeback. Is it possible to have it reversed if you prove that the service was delivered and had initial communication with the buyer?

I'm not sure how 2CO handles that.

With a regular merchant account, it is definitely possible to submit a chargeback rebuttal to try to reverse a chargeback. While this does not always succeed, my philosophy is that it is always worthwhile to try if you feel have you been unjustly charged back.

The more information you have on file on the account, the better your chances of winning the dispute.