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A chargeback
is what is when a customer contacts their credit card issuing company directly for a refund of a payment. The credit card
issuing company will claim back the full payment on the customer's behalf. For which a fee is charged to your credit card
processing company. This cost will also be charged to you and you maybe subject to additional fees according to your provider.This
process can become a very costly affair if you as a merchant are subject to excessively high incidences of chargebacks. In
severe circumstances too many chargebacks can cost you your merchant account.In this case your account will be frozen and
inactive pending further investigation into all billing disputes.
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