The life cycle of a chargeback can resemble a heist movie at times, with back and forth reversals of fortune right up to the very end. First the money goes back to the cardholder, then the merchant succeeds in representing the charge, but then the issuing bank takes it all the way to arbitration. First you have the money, then you don’t, and fees start getting tossed in at various points—it’s enough to make your head spin. Now, can you imagine what it’s like for your accounting team to try and make sense of all this activity at the end of the month?

Figuring out how to properly account for chargebacks may not carry the same urgency as figuring out how to fight and prevent them, but if you want to get an accurate handle on how chargebacks are impacting your bottom line, they need to be thoroughly and correctly recorded in your ledger.

Full Text:
https://www.chargebackgurus.com/blog/chargeback-accounting-how-to-get-it-right-and-why-it-matters

©Chargeback Gurus 2020
Production: Tyler DeLarm
Narration: Sarah Rife