Banking is perceived as a complex system by many. Multiple steps need to be completed on the back part as well as a customer’s part for ensuring a cordial relationship between the banking authorities and the customer. Especially when it comes to using financial services such as taking a payment card from a particular Bank, the complexity of the relationship in terms of repayment of the credit for transferring of funds becomes even complex. One of such complex systems of the banking issue is that of the chargebacks. Many people are not clear with the function and need for chargebacks. Moreover, they perceive it to be of not much use. But when you come to know about Ethoca chargebacks you will find it a much useful process.
Basics of chargebacks
The system of chargeback was introduced in the United States of America under the fair credit billing act in the year 1974. The purpose of introducing this system was to ensure the protection of customers from any type of fraud as well as merchant-related queries as well. Chargebacks would allow the customers to dispute transactions. A customer gets the benefit of such chargebacks when they flag the transaction to the bank related to the validity of the purchase that they have made with the particular payment card. Chargebacks can be referred to specific customer-initiated purchase dispute processes.
If we try to understand the process of chargebacks, it is not much complicated. It all starts if the customer is facing any issue with the payment while purchasing goods or services. This stage mainly walls the customer and the merchant right now.
The customer contacts the disputed transaction to their card provider that is the respective Bank that has issued the payment card to the customer. The bank then asks for the required details from the merchant to validate the purchase.
Once the purchase has been validated there are two options for countering the issue. Whether the merchant can accept the chargeback or they can submit representment. The value of the chargeback is dependent on the validity of the proof submitted by the merchant. Ethoca chargebacksensure that their customers have the easiest time while dealing with chargebacks.