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basics of chargebacks



eCommerce Payments Terminology: Chargebacks

Part 3

 

In our last two posts, we reviewed basic terminology that can help you better understand the payments ecosystem. When your business accepts payments in an eCommerce environment, chargebacks are also front-of-mind. So what are the basics that you need to know about chargebacks? Here’s our shortlist of need-to-know terminology.

Chargeback
Forcible return of funds to a customer by the issuing bank of the instrument used by a consumer to settle a debt; reversal of a prior outbound transfer of funds from a consumer’s bank account, line of credit, or credit card

Arbitration
A process where the card brand determines financial liability between members for interchange transactions that are presented and charged back

Chargeback Period
The number of calendar days from the endorsement date of a transaction receipt (or processing date, as applicable) during which time the issuer may exercise a chargeback right

Presentment
A clearing record that an acquirer presents to an issuer through interchange, either initially (a first presentment) or after a chargeback (a re-presentment)

Re-Presentment
Process by which a merchant can dispute a chargeback with an issuing bank; allows merchant to present evidence to prove the chargeback is not warranted

Reversed Chargeback
Chargeback that a processor resolves in the merchant’s favor by transferring the chargeback liability back to the account issuer

What other eCommerce payments terms are you curious about? Contact us.
 

Source: Vantiv, http://www.vantiv.com/Insights/Resources-By-Type/Papers/Payments-Dictionary-205-Words-Worth-Knowing, 2014.

 

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