HOW MUCH DOES OFFSHORE MERCHANT ACCOUNT CHARGE
BACKS COST YOU?
You have obtained a new merchant account
for your company and are feeling very
happy that your business will gain a lot
from it. You have also seen the profits
of your business rise but one fine day
you will get a shock when you see your
merchant account bill.
The shock that you received was because
you were not aware what the cost of
charge back for you is. It is said that
these charge backs appear only “under
the cloak”. For small business owners
they are like Roaches, which carry
diseases, are disgusting and filthy and
the hardest part is: they cannot be
Nobody takes the responsibility of
creating or bringing them. No one will
also admit that they have it with them
until they see their bill. Businessmen
let them do their damage instead of
accepting the fact of their existence
and try to manage them. With so much
damage occurred to many businesses I
wonder whether people don’t see them or
refuse to see them.
They are Chargeback’s! These are nothing
but claims made by unsatisfied customers
to their card company for the purpose of
getting their hard earned money back.
Many merchants get scared to even talk
about the topic, let alone taking steps
to minimise it. But if you don’t accept
their existence and take steps to
control it you will be in for a major
shock when you get your merchant bill.
Sometimes you may wonder why you are the
only one to bear the brunt of
chargeback’s. You may wonder why not
share it with the credit card companies
or the processing bank of the merchant
account or the provider of merchant
account. Unfortunately, you have to bear
the entire cost of a chargeback.
Apart from stratospheric fees and rates
associated with merchant accounts the
chargeback’s are a huge cost to incur
while processing credit cards. This
article will explain how much these
chargeback’s will actually cost you.
The various fees and charges that are
applicable to you when a customer makes
a chargeback are as follows:
Chargeback Fees: This fee is charged
to your account each time a
chargeback transaction is processed.
It will decrease your company’s
profit by thirty five dollars.
Retrieval Fee: This fee is charged
when investigation is required. This
fee will cost you ten dollars per
Review & Filing Fee: You can bring
the dispute this far if you want to
but it will cost you a whopping four
hundred dollars. Therefore, you
should bring it this far only if the
transaction value is very high.
Lost Goods: In spite of the lost
revenue you may also not get back
your goods and therefore let us
consider the average loss, which is
fifty dollars according to
Fulfilment: You will also loss all
the money which was spent on postage
and packaging. It is about thirty
Wasted Time: “Time is money”.
Therefore, you would have spent time
that is worth eighty dollars for all
one of our helpful account
representatives to assist you in the
high risk merchant account or
offshore merchant account for a
high risk merchant.