The proper chargeback management strategy is necessary for any company to maximize its profitability. Unfortunately, chargebacks can wreak havoc on any business, big or small, costing your business lost revenue, damaging banking relationships, and risking a terminated merchant account.
Merchants and customers view chargebacks and refunds entirely differently than one another. To a customer, chargebacks and refunds are the same things. The customer gets their funds back from chargebacks and refunds, with the only difference being they go directly to their bank for a chargeback.
Behind every transaction, you will find two essential pieces of the puzzle: the issuing bank and the acquiring bank. The difference between the issuing bank and the acquiring bank is that the issuing bank represents the cardholder, and the acquiring bank means the merchant.