{"id":177,"date":"2019-02-19T18:12:00","date_gmt":"2019-02-19T18:12:00","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/preventing-chargebacks\/"},"modified":"2026-03-30T18:18:54","modified_gmt":"2026-03-30T18:18:54","slug":"preventing-chargebacks","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/preventing-chargebacks\/","title":{"rendered":"Avoiding These Common Triggers Can Help Prevent Costly Chargebacks"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-is-a-chargeback\">What is a chargeback?<\/a><\/p>\n\n\n\n<p><a href=\"#h-why-chargebacks-are-a-pain-for-merchants\">Why chargebacks are a pain for merchants<\/a><\/p>\n\n\n\n<p><a href=\"#h-what-is-friendly-fraud\">What is friendly fraud?<\/a><\/p>\n\n\n\n<p><a href=\"#h-avoid-these-5-common-chargeback-triggers\">Avoid these 5 common chargeback triggers<\/a><\/p>\n\n\n\n<p><a href=\"#h-5-ways-to-prevent-chargebacks\">6 ways to prevent chargebacks<\/a><\/p>\n\n\n\n<p><a href=\"#h-partner-with-a-chargeback-management-service\">Partner with a chargeback management service<\/a><\/p>\n\n\n\n<p><a href=\"#h-learn-more-about-shipbob\">Learn more about ShipBob<\/a><\/p>\n\n\n\n<p><a href=\"#faq\">Preventing chargeback FAQs<\/a><\/p>\n<\/div>\n\n\n\n<p>Here\u2019s a (not so) fun fact: online merchants suffered more than $20 billion in losses last year as a direct result of chargebacks. But what if I told you that most of those losses were unnecessary and avoidable?<\/p>\n\n\n\n<p>In this post, we\u2019ll explore how this once-obscure payments industry rule ended up costing retailers so much, and how you can protect your bottom line against preventable losses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-chargeback\">What is a chargeback?<\/h2>\n\n\n\n<p><span>In their simplest form, chargebacks are a kind of forced payment reversal. If a cardholder is the victim of fraud or deceptive merchant practices, that individual can simply contact the card-issuing bank and request a chargeback to overturn a possible fraudulent transaction.<\/span><\/p>\n\n\n\n<p><span>Chargebacks are described as a litigation-based process. A chargeback plays out like a court case, with the plaintiff (the cardholder) making a claim, and the defendant (you) trying to refute the claim. For example, assume a cardholder finds a transaction on their credit card statement they don\u2019t recognise. The preventing chargeback process works as follows:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cardholder contacts their issuing bank to dispute the transaction.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The card issuer assigns a reason code, identifying the customer\u2019s claim.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The issuer investigates the case, identifies fraudulent activity, and files a chargeback.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuer forcibly withdraws funds from the payment processor\u2019s acquiring bank.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquirer reviews the case and passes it along to the merchant.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchant either accepts the chargeback or produces evidence to contradict the claim.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquirer submits representment to the issuer on the merchant\u2019s behalf.<\/span><\/li>\n\n\n\n<li><span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuer reviews representment, and either accepts or rejects the claim.<\/span><\/li>\n<\/ul>\n\n\n\n<p>The process repeats in the event the issuer refuses your claim and upholds the chargeback. This time, though, the card network has the final say as to who \u201cwins\u201d the dispute (a process called arbitration). The arbitration stage is very time-consuming and can cost hundreds or even thousands of dollars, regardless of the original transaction total.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-purpose-of-a-chargeback\">What is the purpose of a chargeback?<\/h3>\n\n\n\n<p>Chargebacks were introduced back in the 1970s to build consumer confidence in payment cards, which were still a new and novel idea at the time. In their original context, credit card chargebacks served several important functions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Provide recourse in case of fraud:<\/strong> With so much data floating around the digital space, fraud is more a threat than ever. Chargebacks help consumers who become victims of fraud recover their funds.<\/li>\n\n\n\n<li><strong>Make consumers feel secure:<\/strong> Consumers can use <a href=\"https:\/\/www.getyooz.com\/blog\/epayables\" target=\"_blank\" rel=\"noreferrer noopener\">virtual payment cards<\/a> confidently, knowing they have options in the event of fraud or abuse.<\/li>\n\n\n\n<li><strong>Deter bad actors:<\/strong> The prospect of a chargeback deters those who might be tempted to sell subpar products or to engage in merchant fraud.<\/li>\n<\/ul>\n\n\n\n<p>Chargebacks can provide an \u201cace in the hole\u201d for buyers. Thus, the power over card payments is ultimately in the consumers\u2019 hands. But, while chargebacks are a valuable and useful consumer protection mechanism, they\u2019re not without problems.<\/p>\n\n\n\n<p>As mentioned above, the chargeback process dates back more than 40 years. We\u2019ve seen incredible shakeups in the marketplace since 1974, including the rise of ecommerce, alternative payments, EMV chip cards, and more. However, the way we administer chargebacks remains more-or-less the same.<\/p>\n\n\n\n<p>The chargeback process is not responsive to a dynamic, digital global market\u2026 and that\u2019s a big problem.<a id=\"pain\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-chargebacks-are-a-pain-for-merchants\">Why chargebacks are a pain for merchants<\/h2>\n\n\n\n<p>Over the last decade, chargebacks evolved from an obscure payments industry practice to a major ecommerce pain point.<\/p>\n\n\n\n<p>Chargebacks entail lots of additional liabilities and drain on your bottom line:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-lost-merchandise\">Lost merchandise<\/h3>\n\n\n\n<p>From the consumer\u2019s perspective, a chargeback is basically the same thing as a return. However, chargebacks and merchant returns are actually very different. Sure, in both cases you lose sales revenue generated by the original transaction, but, unlike a standard return, you\u2019re unlikely to recover merchandise after a chargeback.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-extra-chargeback-fees\">Extra chargeback fees<\/h3>\n\n\n\n<p>Your acquirer charges a fee to cover chargeback administration (typically between $20-100 per customer dispute). Even if you win the chargeback dispute, your bank doesn\u2019t have to refund these fees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-more-overhead\">More overhead<\/h3>\n\n\n\n<p>Managing disputes, rebuttal letters, and compiling evidence takes time and staff away from other activities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-tied-up-funds\">Tied-up funds<\/h3>\n\n\n\n<p>Disputes can take weeks or even months to resolve. During that time, the funds in question are stuck in limbo.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-consequences-of-multiple-chargebacks\">Consequences of multiple chargebacks<\/h3>\n\n\n\n<p>Of course, chargebacks aren\u2019t atomized. An ongoing chargeback problem can lead to some very serious, or even disastrous, consequences:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-high-risk-status\">High-risk status<\/h4>\n\n\n\n<p>If your monthly chargebacks exceed predetermined thresholds, you may be designated a \u201chigh-risk\u201d merchant. You could be forced to maintain a rolling account reserve, and pay for expensive, regular account reviews.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-termination\">Termination<\/h4>\n\n\n\n<p>If chargebacks are a consistent problem, your bank may freeze, or even terminate your account. At this point, you are unable to accept any payments, doing incredible and possibly irreversible damage to your business.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-match-list\">MATCH List<\/h4>\n\n\n\n<p>If your account is terminated due to chargebacks, your bank will place you on the MATCH list. You could be blacklisted from getting another merchant account, making it impossible to accept card payments for up to five years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inconsistent-chargeback-rules\">Inconsistent chargeback rules<\/h3>\n\n\n\n<p>Each debit, credit card, and <a href=\"https:\/\/ramp.com\/business-credit-cards\" target=\"_blank\" rel=\"noreferrer noopener\">business credit card<\/a> schemes have its own unique rules governing chargebacks. For example, Visa implemented the <a href=\"https:\/\/ad.chargebacks911.com\/beyond-vcr\">Visa Claims Resolution initiative<\/a> back in 2018, as an attempt to modernize and speed up their chargeback procedure. Mastercard is in the process of rolling out a similar initiative right now.<\/p>\n\n\n\n<p>While these updates represent progress, the fact remains that banks are the ones adjudicating disputes. They need to interpret the card scheme rules, adding a level of subjectivity to the equation.<\/p>\n\n\n\n<p>The discrepancies and lack of standardization in chargeback processes led to the rise of a major payments industry problem over the last decade, commonly known as \u201cfriendly fraud.\u201d<a id=\"fraud\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-friendly-fraud\">What is friendly fraud?<\/h2>\n\n\n\n<p>Friendly fraud describes a situation in which a cardholder files a chargeback without proper justification. The cardholder abuses the chargeback process to essentially undo a transaction and recover their money.<\/p>\n\n\n\n<p>We should distinguish friendly fraud from deliberate \u201cchargeback fraud\u201d (also known as \u201ccyber shoplifting\u201d). With the latter, the cardholder makes a purchase with the premeditated intent to file a chargeback and \u201c<a href=\"https:\/\/www.helcim.com\/guides\/what-is-chargeback-fraud\/\" target=\"_blank\" rel=\"noopener\">get something for free<\/a>.\u201d Friendly fraud, however, tends to be the result of a lack of understanding of the chargeback process.<\/p>\n\n\n\n<p>Common reasons cardholders commit friendly fraud include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The customer experiences buyer\u2019s remorse.<\/li>\n\n\n\n<li>To avoid a restocking fee.<\/li>\n\n\n\n<li>The return process seems complicated and demanding.<\/li>\n\n\n\n<li>The customer doesn\u2019t understand the delivery or payment schedule.<\/li>\n\n\n\n<li>The window of time allowed for a product return expired.<\/li>\n\n\n\n<li>A family member made the purchase without the cardholder\u2019s knowledge.<\/li>\n\n\n\n<li>The cardholder authorized a purchase, but can\u2019t recognise it based on the billing descriptor.<\/li>\n<\/ul>\n\n\n\n<p>Friendly fraud is, for all intents and purposes, an accidental form of fraud \u2014 but that doesn\u2019t make it any less damaging.<\/p>\n\n\n\n<p>You\u2019d probably assume most chargebacks result from criminal fraud attacks. In reality, data from <a href=\"https:\/\/chargebacks911.com\/\">Chargebacks911<\/a> links fewer than 10% of all chargebacks to criminal tactics like identity spoofing or account takeover.<\/p>\n\n\n\n<p>Friendly fraud causes between 60-80% of all chargebacks. That translates to a projected economic impact of somewhere<a href=\"https:\/\/www.javelinstrategy.com\/node\/60121\"> between $18.6 billion and $24.8 billion<\/a> in 2017 alone. Those figures don\u2019t even account for related costs like false declines, return fraud, margin compression, and rising long-term costs, all of which could push the dollar figure much, much higher.<a id=\"5\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-avoid-these-5-common-chargeback-triggers\">Avoid these 5 common chargeback triggers<\/h2>\n\n\n\n<p>To proactively avoid chargebacks, you need to understand what causes them. Here are a few common triggers that can make customers more likely to file a chargeback.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-confusing-policies\">1. Confusing policies<\/h3>\n\n\n\n<p>If a customer can\u2019t understand your policies, they may see a chargeback as an easier option. Ensure all your policies regarding payment, shipping, billing, and <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\">return<\/a> policy are clearly-worded, descriptive, and easy to find on your site.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-customer-service-hassles\">2. Customer service hassles<\/h3>\n\n\n\n<p>Your customer service team is your line of defense against chargebacks. Be sure your customer service information, including a phone number, email address, and social media, is visible on every page.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-slow-response\">3. Slow response<\/h3>\n\n\n\n<p>When customers don\u2019t get a rapid reply, they\u2019re much more likely to file a chargeback. When immediate live service is unavailable, provide auto-replies to email and social media inquiries, informing customers when to expect an answer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-late-shipping\">4. Late shipping<\/h3>\n\n\n\n<p>If you provide shipping timetables, be sure they\u2019re accurate. Tracking information and delivery confirmations are also super helpful, giving customers more insight into the shipping process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-over-reliance-on-automation\">5. Over-reliance on automation<\/h3>\n\n\n\n<p>Chatbots can help streamline customer service processes, but they\u2019re no substitute for live service. Have a human available to help customers as many hours a day as possible.<a id=\"5-ways\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-ways-to-prevent-chargebacks\">6 ways to prevent chargebacks<\/h2>\n\n\n\n<p>There\u2019s no way to definitively \u201cprevent\u201d chargebacks. If you conduct business online, there\u2019s always a certain level of risk involved due to the nature of friendly fraud.<\/p>\n\n\n\n<p>Does that mean there\u2019s nothing you can do to stop it? Not necessarily. Here some basic best practices that may help prevent your next dispute.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-responsive-customer-service\">1. Responsive customer service<\/h3>\n\n\n\n<p>It\u2019s best to offer live customer service \u2014 via phone, live chat, or both \u2014 for as many hours of the day as possible. Make sure your team responds as quickly as possible to all customer inquiries via email and social media. One way to keep up is by <a href=\"https:\/\/www.shipbob.com\/blog\/outsource-customer-service-ecommerce\/\">outsourcing customer service<\/a> to a third-party provider like ShipBob partner <a href=\"https:\/\/www.simplr.ai\/\">Simplr<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-fast-shipping\">2. Fast shipping<\/h3>\n\n\n\n<p>Thanks to big players like Amazon, contemporary consumers have high expectations regarding shipping. Buyers won\u2019t pay much (if anything at all) for shipping, they expect items to arrive within a few days, and they want the ability to track their orders every step of the way. Partnering with a <a href=\"https:\/\/www.shipbob.com\/3pl\/\">third-party logistics company<\/a> like ShipBob can make offering fast, affordable shipping a hassle-free process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-straightforward-policies\">3. Straightforward policies<\/h3>\n\n\n\n<p>Ensure your customer service policies and <a href=\"https:\/\/www.iubenda.com\/en\/help\/132171-sample-terms-of-service-template\" target=\"_blank\" rel=\"noreferrer noopener\">terms of service<\/a> are simple, straightforward, and detailed. Most of all, make them easy to find from any page on your site and on social media. In your policies, address common concerns like shipping time, and thoroughly explain the conditions under which you accept returns. Note any items that are final sale.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-utilize-anti-fraud-tools\">4. Utilise anti-fraud tools<\/h3>\n\n\n\n<p>Although criminal fraud represents a minority of chargebacks, it&#8217;s still incredibly important to adopt a multilayered fraud strategy. Tools like address verification, geolocation, velocity checks, customer blacklists, and <a href=\"https:\/\/fingerprint.com\/blog\/account-takeover-fraud\/\" target=\"_blank\" rel=\"noreferrer noopener\">account takeover prevention<\/a> are all useful. You can also <a href=\"https:\/\/chargebacks911.com\/fraud-solutions\/\">partner with a fraud platform<\/a> to help coordinate an efficient fraud strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-make-sure-subscriptions-are-opt-in\">5. Make sure subscriptions are opt-in<\/h3>\n\n\n\n<p>Chargebacks are a major issue for merchants using a recurring billing or subscription model. Making all subscriptions an \u201copt-in\u201d purchase, rather than a negative option, can help. If you employ a negative option billing model, comply with best practices and all card scheme regulations, like Mastercard\u2019s new <a href=\"https:\/\/chargebacks911.com\/mastercard-negative-option-billing\/\">Stored Payment Credential Mandate<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-set-up-chargeback-alerts\">6. Set up chargeback alerts<\/h3>\n\n\n\n<p>Once your anti-fraud measures are in place, you might consider implementing <a href=\"https:\/\/www.chargeback.io\/blog\/what-is-a-chargeback-alert\" target=\"_blank\" rel=\"noreferrer noopener\">chargeback alerts<\/a>.<\/p>\n\n\n\n<p>These alerts let you refund incoming chargebacks before they become official chargebacks, which can keep your payment processor safe from rolling reserves, fines, or even shutdowns.<\/p>\n\n\n\n<p>Many businesses see up to a 90% drop in chargebacks once alerts are up and running. The downside is that once you issue a refund this way, you lose the chance to dispute the chargeback later\u2014meaning you can\u2019t get that money back.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-partner-with-a-chargeback-management-service\">Partner with a chargeback management service<\/h2>\n\n\n\n<p>The above practices can help minimise your risk exposure, but there\u2019s no \u201csilver bullet\u201d capable of eliminating chargebacks. The best option for comprehensive chargeback protection is to partner with a chargeback management service.<\/p>\n\n\n\n<p>A good chargeback management service will help you coordinate tools and consolidate your efforts into a unified, comprehensive plan. They use forensic strategies to identify your business\u2019s chargebacks by source, then deploy the right solution to mitigate risk due to criminal fraud or error and handle friendly fraud through tactical representment.<\/p>\n\n\n\n<p>Chargebacks are a complicated and costly issue to manage. But you can protect your business \u2014 and your bottom line \u2014 with the right tools and support at your disposal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-learn-more-about-shipbob\">Learn more about ShipBob<\/h2>\n\n\n\n<p>Interested in outsourcing fulfilment or switching 3PLs? Connect with the ShipBob team today to learn more. <\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\" target=\"_blank\" rel=\"noreferrer noopener\">Request a Quote<\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\" id=\"faq\">Preventing chargeback FAQs<\/h2>\n\n\n\n<p>Here are the answers to the most common preventing chargeback questions.<\/p>\n<\/div><\/div>\n\n\n\n<section class=\"wp-block-shipbob-blocks-section-container section section-container  max-width-blog\"><div class=\"container section-info section-info-align-none u-hidden\"><h6 class=\"section-title \">FAQs<\/h6><h2 class=\"section-content h2\"><\/h2><p class=\"section-copy u-hidden\"><\/p><\/div><div class=\"container flex-container direction-col justify-none align-none flex-wrap\">\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Can chargebacks be denied?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p><span><span>Of course! If the cardholder doesn\u2019t have a valid reason for filing a chargeback or if they can\u2019t make a good case to their bank, the chargeback can be disputed.<\/span><\/span><\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What are the consequences of chargebacks?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p><span>There are few potential consequences for chargebacks. Some of the most common ones include product loss, additional fees, and more expensive processing costs.<\/span><\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col  col-8\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">Do chargebacks hurt my business?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p><span>They can, both short and long term. You lose revenue, products you\u2019ve shipped, or services you provided, and there is usually a fee associated with the chargeback. Long term, you can lose your merchant account or have higher processing fees if you have a large number of chargebacks and a negative chargeback rate.<\/span><\/p>\n\n<\/div><\/div><\/div>\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What are the most common causes of chargebacks?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p><span>There are a few different reasons why chargeback happens. The most common ones are merchant frauds, where merchants commit crimes against their customers. There\u2019s also cyber shoplifting, where customers do intentional and fake chargebacks to get the product and the money they\u2019ve paid the merchant.<\/span><\/p>\n\n<\/div><\/div><\/div>\n\n<\/div><div class=\"cta-container u-hidden\"><a class=\"btn btn-primary \" href=\"\"><\/a><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"<p>Online merchants lost more than $20 billion to chargebacks last year. Learn how you can protect your bottom line against preventable losses.<\/p>\n","protected":false},"author":125,"featured_media":25112,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[6],"class_list":["post-177","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-ecommerce-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Avoiding These Common Triggers Can Help Prevent Costly Chargebacks - ShipBob UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/uk\/blog\/preventing-chargebacks\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Avoiding These Common Triggers Can Help Prevent Costly Chargebacks\" \/>\n<meta property=\"og:description\" content=\"Online merchants lost more than $20 billion to chargebacks last year. 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