Chargeback: the return of funds to a consumer, mainly used in the United States, forcibly initiated by the issuing bank of the instrument used by a consumer to settle a debt. Specifically, it is the reversal of a prior outbound transfer of funds from a consumer’s bank account, line of credit, or credit card.
Excessive Chargebacks: if a merchant account receives over 100 chargebacks in a month it can place the signer of the merchant account and the business as a whole on the Visa/Mastercard watch list.
Merchant Services: Merchant Services, or better known as credit card processing is the handling of electronic payment transactions for merchants. Merchant processing activities involve obtaining sales information from the merchant, receiving authorization for the transaction, collecting funds from the bank which issued the credit card, and sending payment to the merchant.
Merchant: the person that is behind the business and signs on the Visa/Mastercard merchant account to get a unique MID.
