The majority of the time, merchants are responsible for chargebacks and have the responsibility for providing evidence in any dispute. A vendor must prove why the bank should reverse the chargeback. If the merchant does nothing, the cardholder prevails automatically. In the case of card-present retailers, the issuing bank is held accountable for the chargeback if a customer uses an EMV (Europay, Mastercard, Visa) chip to make a purchase, and the payment turns out to be illegitimate. Chargebacks brought on by merchant mistakes are still the merchant’s responsibility. The specific timeframe a merchant has to respond to a chargeback will vary by network, with some only giving you 7 days while others allowing you up to 30. The merchant will lose by default and can be charged extra for failing to respond if they don’t take action before the deadline.
Who Is Responsible For Chargebacks?
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