What is eChargeback and What does it Mean for Your Business.
Whether you are a merchant who has received his first echargeback or a consumer curious about how echargeback work, it is important to understand the purpose, history and impact that chargeback make on those involved in the process.
The History of eChargeback
The Truth in Lending Act of 1968 laid the groundwork for credit card echargeback. However, the payment industry experts recognise The Fair Credit Billing Act of 1974 as the invention of echargeback. When introduced, echargeback were a form of consumer protection for credit card holders but due to the sudden rise of online scam it has extended into chargeback of B2B Scams, Online scams, and any other online fraud.
For online businesses defrauded by fraudsters (either criminals who place unauthorised transactions or unscrupulous merchants who take advantage of the consumer), echargeback is the consumer’s fallback option.
Consumers can use echargeback to dispute an online transaction and secure a refund for their purchase.
eChargeback can be used to dispute all sorts of online scams and secure a refund for the purchase. echargeback voids an online transaction, recovering funds that were previously paid and either goods werent delivered as agreed or had encountered any sort of issues that leaded to client loosing thier money.
eChargeback differ from traditional refunds in one simple way: rather than contact the business for a refund, the consumer goes over echargeback’s head via proper investigation and asks the bank to forcibly remove funds from the business’s bank account or via bank insurance refund system called BIR systems.