Costs and implications of a chargeback

Costs and implications of a chargeback

   Associated costs
Each time a buyer files a chargeback, the merchant is charged a penalty fee of approximately $60.00 + ITBMS ($64.20).
This penalty applies even if the buyer later cancels the chargeback. For example, if the claim originated due to non-delivery and the product arrives days later, the merchant will still be responsible for the fees and administrative costs of the process.

   Impact on the merchant’s account
If the chargeback rate exceeds 2% in relation to processed sales, PagueloFacil may cancel the merchant’s account.
This may result in:
Frozen or restricted account
Revocation of the ability to process credit card payments
Inability to accept cards while the account is restricted or closed

   Risk of inclusion in restrictive lists
In the event of account cancellation, PagueloFacil may report the merchant for inclusion in restrictive lists (blacklists).
This may create difficulties when opening accounts with other payment processors in the future.

   Application of reserve accounts
PagueloFacil may apply a reserve account to merchants who frequently experience chargebacks.
This account:
Does not generate interest
Is used to cover or mitigate potential losses from chargebacks

   Chargeback management and disputes
Although merchants have the right to dispute illegitimate chargebacks, this process requires a significant amount of resources and information.
Without proper evidence, it is unlikely that a dispute will be won.

   Impact on risk indicators
Winning a dispute does not improve the chargeback ratio in relation to processed transactions.
This means that even if the merchant recovers the money, the associated risk to their account remains and does not reduce the likelihood of future account cancellation.

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