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Avoid Chargebacks and Protect Your Small Business

In 1974, the Fair Credit Billing Act (FCBA) was passed as an amendment to the Truth In Lending Act. It’s objective was to protect consumers from billing practices that were unfair and to provide a means to address billing errors in credit card accounts.

Although this act awarded millions of consumers a way to protect themselves from unauthorized, fraudulent, and substandard merchandise, there are some unscrupulous consumers who have taken advantage of and abused the system. So often it comes in the form of filing credit card disputes that are false. For merchants this has resulted in Chargebacks. 

What Are Chargebacks?

In its most basic form, chargebacks are where a credit card company or banking institution requests that a charge from a merchant be reversed. Regardless as to whether the chargeback was initiated in error or in malicious intent, the result is the same…after they reach a certain limit, they can result in stiff penalties for the merchant. 

The reasons for chargebacks vary.  It could be the customer merely asks their credit card company to have charges on their card reversed due to a fraudulent purchase. Some customers never receive their merchandise, or if they do, the state of the item leaves much to be desired in terms of quality and condition. 

How To Avoid Chargebacks

There is no question that, over time, chargebacks can dramatically erode your profit margin. The best protection against chargebacks is to take preventative measures now to avoid them in the first place, rather than try to fight them when they are in process.

Merchants need all the help they can get in disputing chargebacks, especially when most chargebacks work in the consumer’s favor. That is where EMB comes in.

EMB ( is a leading high-risk merchant account provider that knows the threat of chargebacks that most high-risk online businesses face. EMB has proudly partnered with Verifi Inc., who has extensive networks with banks and credit card issuers. Along with a partnership with CDRN, they form a formidable and effective alliance against chargebacks in the industry. 

The process is simple. The moment a customer notifies their bank of a dispute, the card issuer immediately identifies the merchant as being part of the CDRN. 

As soon as the CDRN gets involved, they alert the merchant about the dispute. Once the merchant receives the request, they can decide whether to refund or decline. This places the control back on the merchant. Once the merchant decides to refund or decline, this decision is given back to the CDRN, where in turn, they will communicate this decision with the card issuer. 

Chargebacks are expensive. You will be ahead of the game, knowing that EMB and its partnerships are protecting your business. The CDRN is proud to mitigate the occurrences of chargebacks by 15% to 30%. EMB’s Chargeback Suite repositions you, the merchant, right back in the driver’s seat when it comes to resolving disputes. This is just another reason why you need EMB on your side. 

Call Today

There is no reason why your business should be devastated by chargebacks. You do have a choice and there is a solution. Call EMB to talk to one of our many professional staff members and start fighting chargebacks today.