We've found that many people share similar questions/concerns regarding chargeback and billing issues. To better serve online merchants, we've prepared a guide that can answer most of your questions at a glance. If you have questions that aren't covered in this section, you may find our email addresses at the Information Center. While you shouldn't hesitate to contact us with your questions and suggestions, we do suggest that you read the F.A.Q. first, because odds are that your answers can be found somewhere below.

Frequently Asked Business Questions

Q: How can BadCustomer.com help me reduce chargebacks?
A: Studies show that customers who’ve used chargebacks once are nine times more likely to issue further chargebacks than customers who resolve billing disputes directly with the company.  By checking to see if a customer is on the BadCustomer.com blacklist, you can avoid chargebacks before they even happen.
 
Q: How effective is the BadCustomer.com blacklist?
A: Studies show that customers are 98% less likely to issue a chargeback if they know they’ll be put on a blacklist for doing so.
 
Q: How much does membership in BadCustomer.com cost?
A: Membership is free. BadCustomer.com is a public service provided to the online merchant community.
 
Q: Is the BadCustomer.com database hard to implement?
A: No. We have detailed instructions as well as live help to assist you. In most cases, it can be implemented in a few minutes.

Q: Can I use the BadCustomer database if my business does card present transactions (not online business)?
A: Yes. You may manually type the customer's information in the Blacklist Search Form to see if they have a history of chargebacks.

Q: How do I alert customers to the fact that I’m using BadCustomer.com to screen out abusive clients?
A: We provide media that can be placed on your site, in your Thank You emails, and on your confirmation pages.

Q: I just received a retrieval request, what do I do with it?
A: You should immediately pull your originating documentation for this transaction and fax it to your credit card processor.

Q: I just received a Notification of Chargeback, what is it and what do I do with it?
A: A Notification of Chargeback is notification to you that your account was debited for this transaction. You should read the reason for debiting your account on the form, and if it is incorrect you should immediately fax supporting documentation and the Notification of Chargeback to your processor. If the issuing bank accepts your documentation, the chargeback will be reversed and the amount of the disputed transaction will be credited to your account. This credit is conditional. If the cardholder disputes the reversal a second chargeback may be initiated. In addition, if your processor has information to contradict your claim, or if your documentation does not support your case, the chargeback debit to your account will stand.

Q: Why couldn’t this Chargeback be taken out of my reserve account instead of my regular checking account?
A: A reserve is set up for security purposes to protect the merchant account processor from losses due to chargebacks. The reserve is usually for merchants who accept non-face-to-face transactions, (phone, mail and Internet orders). The reserve is held in case of default by a merchant.

Q: When will I be notified of a chargeback and when are funds removed from my checking account?
A: The processor will usually mail a Notification of Chargeback when the debit is transmitted to your bank. It takes 2-3 business days for this debit to reach your checking account. Most often, you will receive notification at the same time your checking account is debited. With the optional service, chargebacks can be identified the following day.

Q: Why did I get a chargeback without a prior retrieval request? When I signed my processing agreement I thought I would be given an opportunity to answer a dispute before it was charged to my account.
A: Not all of MasterCard’s and VISA’s chargeback reasons require the Issuer (cardholder's bank) to generate a retrieval request before initiating a chargeback.

Q: Why is my account charged for these transactions?
A: When the issuing bank initiates the chargeback they charge your bank account.

Q: Why didn't anybody tell me about chargebacks before I signed my processing agreement?
A: Your sales representative was responsible for informing you about chargebacks. However, the information is also included on your Merchant BankCard Agreement.

Q: How much do chargebacks and retrievals cost me?
A: You can expect to pay anywhere from $10 - $20 / chargeback. This fee is to cover expenses with processing. To reverse a chargeback, when it's possible, costs you nothing.

Q: Is the risk of a chargeback greater if I manually enter the credit card number?
A: If you are a general retail merchant where a card is present but do not get an imprint (manual or electronic), you may lose money through a chargeback when the cardholder disputes the transaction.

Q: Why did ECHO allow the customer to take their money back?
A: This decision was made by the Issuing Bank upon reviewing the letter of dispute sent to them. This does not mean that this decision is final or you have no rights to rebut their chargeback. Work with your processor to dispute chargebacks if there are valid reasons for doing so.

Q: Who is going to pay for my bounced check fees because this chargeback was taken from my account?
A: Per the merchant’s contract with the processor the merchant should keep enough money in his account to cover any chargebacks.

Q: I issued a credit and I still received a chargeback, why?
A: In these cases for some reason the Issuer did not see the credit issued by the merchant. Sometimes the credit is issued after the chargeback was initiated and they ‘cross’. All you have to do is represent the item and it will be credited to your account.

Q: I was told that an authorization guaranteed payment.
A: An authorization will only verify that an account is open and that there are funds available. However, if a card has been stolen and the loss has not yet been reported, any charges made by the criminal can later be charged back by the cardholder.

Q: Can a credit card processor protect me from chargebacks?
A: There is a limited amount that a processor can do to protect a merchant from chargebacks. Let's face it, as a merchant you will be held responsible for any chargebacks.

Q: What can I do to prevent this from happening?
A: General retail merchants generally do not have problems with chargebacks. Mail, phone and Internet merchants can minimize chargebacks by making sure the name they advertise under and the name they process through are the same or the processing name is in a prominent place on the receipt. Be sure to include a receipt in any product sent to the customer. Reply promptly to retrieval requests. Authorize every transaction and use the AVS if possible. If you use AVS do not ship to an address different than the address verified.