The situation gets even worse on a large scale. I personally know of a company that had MILLIONS of dollars worth of sales per year ONLINE and had a supposedly good rapport w/ the bank. Once sales got higher and chargebacks hit about 2.5% though.. they got slapped w/ $100k+ reserve accounts, $10,000 in FINES* from Visa, and more! There are a number of ways to offset chargebacks including verifying CVV2 codes on Visa orders [the 3 digits near the signature panel on the backside of cards]-- I think no matter what u do, yer gonna be kinda stuck w/ c-backs-- but you should definitely fight the problem before it gets TOO big--they can charge you FINES --BIG ONES [it's in your merchant contract] and even close you down at anytime whether it makes sense for them to do so or not!
[edited by: NFFC at 6:42 pm (utc) on July 6, 2002]