A Complete Guide To Chargeback Limits in 2022!


Chargeback limits in 2022 can be quite confusing and even intimidating for many businesses. With the emergence of new technologies and ever-evolving payment processing rules, it is important to stay up-to-date on these changes in order to ensure that you are compliant with the latest chargeback regulations. To help make this task easier, we have put together a comprehensive guide to chargeback limits in 2022, providing an overview of the current regulations and what you need to know in order to stay compliant.


Chargebacks are the process by which cardholders dispute unauthorized transactions or purchases that have been made with their credit cards. When a cardholder initiates a chargeback, it can cost the merchant a fee, in addition to lost product sales and possibly even additional fraud-related expenses. As such, it is important for merchants to understand the chargeback limit rules for 2022 and know when they may be subject to certain restrictions.


The first thing that all merchants should know is that there are two types of chargebacks: friendly fraud and merchant fraud. Friendly fraud occurs when a cardholder disputes a charge without any valid reason, such as forgetting that they made the purchase or believing that their account was hacked. On the other hand, merchant fraud occurs when a fraudulent transaction is conducted using stolen credit card information.


Under current rules and regulations, merchants are limited to two chargebacks per month, regardless of the type. This means that merchants must be vigilant in monitoring their transactions to ensure that they are not subject to fraudulent chargebacks more than two times a month. Additionally, merchants should take extra precautions to protect themselves against potential merchant fraud by implementing measures such as card-not-present transaction verification and using tokenization technology for digital payments.


In addition to the two chargeback limit rule, there are also certain other restrictions that merchants must be aware of in 2022. For example, if a merchant is found to have an excessive number of chargebacks within a single month, they may face additional consequences such as being placed on the Mastercard or Visa Merchant Chargeback Monitoring Program. This can lead to severe consequences such as being fined or even having their merchant account terminated.


Finally, merchants should also keep in mind that certain card networks have different chargeback limits than others. For example, American Express and Discover Card currently allow up to four chargebacks per month, while Visa and Mastercard only allow two. It is important to understand the differences in order to stay compliant with chargeback regulations.

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