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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.

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.