Payment Processing and Liability

When a transaction is processed, most businesses rely on their payment processing company to verify the owner of the card is using the card. This is simpler with transactions occurring in person. It is a little more difficult with transactions occurring online or over the phone. It is important to hire a reputable and professional payment processing company to reduce the risk of charge backs. Starting a Payment Processing Company

A charge back is when a transaction goes through and it is found to be a fraudulent, the goods or services weren’t received, or it was an unauthorized transaction. When this happens, the money that the business received from the payment processing company will need to be returned or charged back to the business.

Here are some ways to reduce the risk of charge backs and being liable:

* Proper understanding of the card payment process for in person and online transactions

* Follow procedures for processing a payment (checking ID, requesting a CVV, etc)

* Make sure all equipment is up to date

* Be certain shopping cart is secure and working properly

Even when a business and a processing company does everything right, there will be some charge backs that cannot be avoided like with returns. The business will be responsible for paying the processing company back the money received that was returned to the customer, was not received by the customer, or disputed by the customer.

When working with a professional and experienced payment processing company like Merchant Data Systems you will be able reduce the charge backs that your business will be liable for. This is done in the following ways:



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