Why do chargebacks occur

  • 1 They want to get the product for free

    Some customers abuse the chargeback system in order to get products for free. In such a case, the chargeback is called a friendly fraud. There is no way to prevent this kind of chargeback since the customer does it intentionally.

  • 2 Someone's card was used

    If the customer used the card of someone else, a parent, for example, but didn't inform that person then the owner of the card might request a chargeback when they see the money deducted.

  • 3 They forgot they made a purchase

    A person can forget they made a purchase and request a chargeback. In such a case, the chargeback could have been prevented by reminding the customer of the purchase. See how to prevent chargebacks.

  • 4 They don't recognize the chargeback

    In some cases, the customer might fail to recognize the charge or relate it to the purchase they made. In such a case, the customer might believe it's a fraudulent charge.

  • 5 They didn't recognize the payment gateway

    If you are selling products through a payment gateway, the customer might fail to recognize the name of the payment gateway on their card and so request a chargeback.

  • 6 They forgot they subscribed to something

    If a customer forgot that they subscribed to a service that charges them every month then they might request a chargeback to stop the billing.

  • 7 They didn't know it's a subscription

    A customer can request a chargback if they didn't realize they ordered something with recurring billing. In such a case, they can request a chargeback for the recurring billing.

  • 8 They couldn't reach the customer support

    Sometimes customers fail to reach the customer support department of a business and so they request a chargeback to get their money back.

  • 9 The business refused to refund

    If a business refused to refund a purchase then some customers might request a chargeback directly from their banks to get their money back.

  • 10 They didn't like the product

    Some customers request chargebacks when they don't like certain products. Some customers just choose to bypass the business and contact the bank directly.