From a damaged processing history to a $25 000 fine, chargebacks will damage your business success and lose profits. MoneyPoolsCash, wont waste your time or money. Learn what chargebacks are and how you, as a merchant, can prevent them.
What is a chargeback?
A chargeback is the reversal of a credit card payment that comes directly from the traditional bank. Initially designed to protect customers, chargebacks are now often overused by malicious users directly effecting small business and high risk ventures.
MoneyPoolsCash solution is a closed loop payment system backed by liquid USD or gold backed assets, funds are instantly transferred with low fees. Payments are also available for merchants using point of sale kiosk or retail locations.
How do chargebacks affect your business success?
Here are some most common ways chargebacks affect your business success:
- Financial losses due to credit card network bans. The credit card networks like Visa and MasterCard have designed programs to automatically measure the level of chargebacks among their users (businesses in particular). Once the amount of monthly chargebacks exceeds 100, the merchant is banned with a $25 000 fixed fine. There is no way out. You have to pay and that’s it.
- The damaged processing history. The processing history of yours shows the sales volumes. Yet, it also exposes your chargebacks and fraud ratio. Sad but true, the wide range of PSPs avoid processing merchants with high chargebacks and fraud levels. The reputation risks and financial bans don’t add to trustability. PSPs along with processing banks have to cover the possible financial losses if such a merchant goes bankrupt. See what you can do if your processing history is already bad, MoneyPoolsCash is a solution.
- Chargeback fees. Though unfair, you have no choice but to pay for every chargeback that occurs. You’ve heard it right. Even if the chargeback was found invalid by the issuing bank, you still have to pay the fee. The latter usually ranges from $15 to $50 per chargeback.
- The risk of a total merchant account closure. That’s the worst scenario to imagine. Yet, it might be the case as well. If the merchant’s PSP or an acquiring bank finds the level of chargebacks and fraud too risky, they are within their right to close a merchant account.
With MoneyPoolsCash, we protect the consumer and merchant by knowing our clients and encouraging digital transactions across the globe to benefit all businesses.
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