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Chargebacks are frustrating and expensive assaults on a retailer's bottom line. But practical and smart merchants can learn from some chargebacks, improving their stores' performance, customer satisfaction, and operational excellence. When a consumer asks his or her credit card company for a refund, a merchant can suffer a chargeback. That is, the credit card company will reach into a merchant's bank account and take the total amount of the transaction that's being charged back. Then, any one of three or more different types of organizations-issuing banks, merchant banks, and payment gateways-could charge the merchant a fee for its trouble. Throughout this process, no one bothers to inform or ask the merchant.

Many ecommerce businesses receive international orders for both single items as well as large quantities. These businesses usually take credit card payments for the orders, which puts them at great risk of incurring chargebacks, especially for large ticket items and large transactions. They do not want to turn away an order, but they are frustrated with the level of chargebacks they receive. Implementing the appropriate payment methods and properly financing your export sales are two key factors to your success in exporting. The most widely used methods of payment instruments in business-to-business international transactions are bank wire transfers and commercial letters ALTof credit (L/C's). Typical financing can either be obtained through the normal lending channels or through the U.S. government when you have exhausted the conventional options.

While online shopkeepers are experts in their industries, they might not be expert at understanding their payment processing service or its statement, which can include adjustments, interchange charges, service charges, fees, and chargebacks.