Services such as applying Visa online or purchase a flight ticket online are generally receive less fraud case, compared to tangible items. An online business owner who process credit card should well aware of these two issues:

Refund is not chargeback. For example, when someone complaint to you (the business owner) directly and ask for a refund. You can trigger the refund through your payment gateway’s control panel and the case is settled.

Chargeback generally refer to the case when your buyer complaints directly to the credit card company. Credit card company will inform you payment gateway company and penalize them if this happen very frequently. So, it is not just you to make sure there are less chargeback case, but the payment company as well.

Generally speaking, when dispute happen in an online transaction, in most case the buyers are the winner. See, you accept payment without physically inspecting the card and the card holder. To credit card company, the online store owner are wiling to take the risk, and therefore they will be responsible when dispute happens. The result, you will have to cover the lost, and penalize. Paypal charge you additional USD10 for every chargeback!

(draft still :)

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