When an online business owner starts to accept credit cards as a method of payment, there are several factors which must be taken into consideration. Most merchants will agree the biggest drawback resulting from credit card transactions is the high cost associated with credit card processing. With many merchants paying hundreds if not thousands of dollars per year in processing fees, the loss of income in other areas becomes even more problematic. Chargebacks occur when a credit card payment received by the merchant is reversed. When revenue is lost in the form of chargebacks, the cost of doing business goes up. Here we take a closer look at what happens when a charge is reversed and what online merchants can do to prevent this occurrence.
