Refund/return/chargebacks

[Kysmiley]

Whats the difference. Im with Authorize.net and am wondering if i give a refund for a return is that the same as a chargeback? Do i still get charged for a chargeback?
Pat

[RedWolf]

No, a refund is just that you are returning the money voluntarily. The customer contacts you and everything is handled directly without involving their bank or your processor. This is the same as you taking something back to a local store. While not a "good thing" from a revenue perspecive, it is still considered normal business practices and you aren't penalized except you lose the discount rate for the transaction and transaction fee.

A chargeback is when a "customer" disputes ever having made the charge or for some other calls their bank and wants them to reverse the charges. They then contact your processor and then you get the letter telling you "you're screwed" for all practical purposes. Soem processors also fine you a hefty some in addition to taking the money back. In the worst case, you are out the product, the money, and the fine.

[Morocco]

FYI The chargeback fee is unreversable.