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There are several types of chargebacks:
- unauthorized/unrecognized charge
- merchandise not as described/damaged
- merchandise not received
- services not rendered
- credit not issued
now all those types can either be fraudulent or not fraudulent.
for example, say you sell a service and accept visa. if you purposely do not render that service, you've committed fraud and will be chargedback for "services not rendered". you'll have to pay.
if you agree to render the service and then go bankrupt, you'll be chargedback, but not for services not rendered. the bank will incur losses (for example, when Canada 3000 (an airline) went bankrupt, all losses were split between Canada 3000's bank and the issuing bank)
or say you you take someone's card at your store and it doesn't swipe because it's demagnitized. so you punch in the cardnumber, but hit a 6 instead of a 9 and charge someone else's account. you'll be chargedback for "unauthorized charge", but it's not fraud.
if you take someone's card and ten days later, punch in another $50, you'll be chargedback for "unauthorized charge", and it'll be fraud.
catch my drift?
it also depends on what type of business you're running. is your merchant account for selling tangible goods? do you have a physical store? are you processing high risk transactions? are you processing on the internet? there's a lot of different factors that can affect how your chargebacks are handled.
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