If you’re a business that accepts credit card and debit card payments, avoiding chargebacks when processing payments can save you money. Chargebacks can be costly: You’re responsible for the chargeback, chargeback fees, and related costs. Fees and fines assessed by the Card Organization can range from $25 to $150 or more.
In a credit card transaction, both the cardholder and the credit card issuer have the right to question or dispute a transaction. When such disputes go unresolved, merchant account holders may be subject to a Chargeback, which can hurt your bottom line as a business.
There are a few standard electronic billing and invoicing software programs that everyone has heard of — the ones that the average entrepreneur might be tempted to toss into his or her shopping cart (real or virtual) when making the initial purchases needed to set up a business.
Although accepting donations via credit card can result in a significant boost to donation receipts for nonprofit organizations, many nonprofits are hesitant to make the technological jump required to accommodate their donors' convenience. The reasons for this reluctance are as numerous as the nonprofit organizations themselves, but a few explanations tend to surface over and over again.