What are chargebacks?

A chargeback is a reversal transaction initiated by the credit card holder’s bank due to a dispute related to the transaction. The common reasons include

• Fraudulent Transactions

  Customer claims they didn’t authorize the transaction.

• Quality Issues

  The customer is dissatisfied with the quality of the product or service, or they claim they didn’t receive the goods or service.

• Forced Subscription

  The customer claims they stopped the subscription, but they were still charged for it.

How do chargebacks work?

When a chargeback occurs, the merchant loses the original transaction amount, as well as additional fees and penalties imposed by payment processors and card networks. The average total cost of chargeback can be between 1 and 2 times the original transaction amount.

Reasons for Chargebacks

• Fraudulent Transactions

  Unauthorized use of cards is one of the primary reasons for chargebacks.

• Fraud By User

  This is incurred when the user knowingly disputes a legitimate charge to get a refund from the merchant.

• Product or Service Not Delivered

  Failure to deliver a promised product or service.

• Technical Errors

  Duplicate transactions, incorrect charges, or processing errors lead to chargebacks.

Impact of Chargebacks

Chargebacks have severe consequences for the merchant’s account. Although merchants can dispute chargebacks by providing evidence, the long and complex process is highly time-consuming. Hence, many merchants avoid it altogether.

• Financial Loss

  Merchants are liable to refund the transaction amount as well as pay additional penalty charges.

• Reputational Damage

  High chargeback rates label the merchant with “High Risk,” resulting in higher processing fees or even account termination.

How Asia Banks Help You Avoid Chargebacks?

While we do not provide the facility to accept credit card payments directly, our payment processing solution is equipped with features that will help you avoid credit card transactions altogether.

• Alternate Payment Methods

  We offer multiple payment methods for receiving money from your users or customers. QR code-based payments, digital wallets, direct transfers, and SMS payment links are gaining popularity and increasing in demand.

• Instant Money in a Bank Account

  With our instant transfer feature, you receive the payment directly in your bank account. No need to wait for your funds to start reflecting in your account in weeks, quickly access your funds and manage your cash flow effectively.

• Forex Service

  Our integrated forex service allows you to process payments in multiple currencies with competitive exchange rates. We are present in Indonesia, India, Vietnam, Thailand, and Malaysia as your Forex payment processors partner.

• No fees on dormant Accounts

  We believe in transparent pricing, which is why we don’t charge any hidden fees on dormant accounts. Our transaction charges are among the lowest in the industry. Also, there are no chargebacks, this helps you ensure you only pay when you use our service.

• Compliance and Regulatory Updates

  We stay current with the latest regulatory requirements in the payment processing landscape. Our team of experts ensures that your transactions comply with the laws of the region you transact in.

• Robust Security

  We use advanced encryption technologies and fraud detection systems to safeguard your transactions and protect your customer’s sensitive information.

• 24/7 Customer Service

  We understand that issues may arise at any time. hence, we offer 24/7 customer support. Our team of representatives is available 24/7 to assist you with any questions or queries that you may have.
  
  At Asia Banks, we are committed to providing you with the best possible service. Our comprehensive features, combined with security, make us the ideal choice for businesses of all sizes. To learn more about how we can help you grow your business, contact us at [email protected]