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Finance, financial fraud, GlobePay, WeChat Pay

No Chargeback – safer payments

What is a Chargeback?

A chargeback is the potential outcome of a disputed credit or debit card transaction. If the cardholder’s bank accepts the dispute, they will first reverse the transaction. Then, take the funds back from the merchant. Finally, returning them to the cardholder.

When a cardholder disputes a charge, the issuing bank will review the transaction and decide if the dispute is valid. If they believe that it is, they will work with the card network and the acquiring bank to finalise a chargeback to cardholders.

What Do Chargebacks Mean for Merchants?

For merchants, chargebacks mean a loss of revenue. This loss can be as much as twice the original transaction amount.
Moreover, this causes the merchant’s chargeback ratio to increase. This can lead to serious consequences including fines, additional chargeback fees, and even termination of their merchant bank account.

How Many Chargebacks Occur Annually?

Information about chargebacks is generally only with the parties involved, and the card networks don’t seem interested in sharing whatever data they have. That makes specific information about how many chargebacks occur difficult to come by.

There are some data from a 2018 survey by Javelin Research that shows that nearly half of all customers have disputed a charge, and a majority of those have disputed more than one.

Can Merchants Prevent All Chargebacks?

It is impossible to prevent every chargeback. Some are the results of genuine criminal activity, and some come about because of mistakes or oversights on the merchant’s behalf. When taking the appropriate measures, merchants can reduce their chargebacks by about 70%.

Why there is no chargeback will happen by using WeChat Pay and Alipay from GlobePay?

WeChat Pay and Alipay are wallet-based payment services, this will prevent chargeback fraud.

For example, when making a payment by using WeChat Pay or Alipay, the customer needs to have enough money in their App account to make that payment. Then after successfully making the payment from customers, both WeChat Pay and Alipay have no right to take the fund back from the merchants’ GlobePay accounts

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