In a free translation from English to Portuguese, the term chargeback means "to charge back," which in the world of e-commerce can be defined as a refund (of a payment made by a user in your online store) and the return of the installment to the credit card company.
Often, what leads a credit card company to refund a certain amount of money is the bad faith of cybercriminals who use false information and stolen or cloned cards at the time of payment.
When a chargeback occurs in your online store, it can cause significant losses for you, the entrepreneur and/or e-commerce administrator, such as:
– The money that had already been paid is withdrawn from your account;
– If there is no money in your account, the amount is posted to the debit;
– Loss of the product if it has already been dispatched;
– Waste of time and money to recover the stolen product;
– If the chargeback percentage is too high, you risk bankruptcy.
Therefore, the best course of action is to avoid chargebacks on your e-commerce website. To do this, rely on a good Risk Analysis service, which can be done manually by a professional or automatically by software.
As I mentioned in the article " What is Risk Analysis in E-commerce ?", this practice aims to compare the pattern and behavior of a user entering your online store with the behavior pattern of users who have already made a purchase without problems.
Any suspicious movement of the user within your site, that is, anything that he performs that is far outside the standards of behavior considered normal, the sale is suspended, which offers greater protection for you merchant.
