In this article, we are going to discuss what is chargeback and risk hold in a card transaction. Also, we will discuss can a person use their mobile phone to make and also receive payment.
What are chargebacks and risk holds?
If a business has decided to take card payments or is already taking payment, they should know about this. This is like a facility and service which is offered by the bank to the customer and the business. A business owner needs to understand what can go wrong with chargeback or risk hold. Also, chargebacks are a kind of service that is made for the protection of the interest of the customer.
Whenever these things happen, the business owner must stay and remain calm. By doing the above thing, they can solve any problem quickly and also peacefully.
Chargebacks are created to protect the customer against any kind of fraudulent behaviour. This will occur when a customer disputes against the business about a certain charge which they have taken. If a chargeback is issued for a lost or stolen card, the case is investigated and then decided about.
Mostly in cases of theft, the police and bank will search and investigate, and if no clue is found, they will give the money back. This means that the business is liable to pay the chargeback to the customer. If your business does not have an EMV chip reader, then the business is held responsible for a chargeback. Once a person receives a message about chargeback, it will take at least two weeks to complete.
- Risk holds
These are a procedure that every business owner has to face when they are new. They are put in the right place to ensure there is no fraudulent activity taking place. This kind of service can be used to save the interest of the customer to buy more goods online.
When you sign up as a new business, they will ask your ticket size that is business size. If you are issuing a transaction and the documentation is not proper, then the processor can stop you. They will keep the money that you would have received as a penalty for no proper documentation.
Can a person use the phone to accept card payment?
Yes, a person can use the phone to make and receive a payment that too very easily. The only thing is that you have to enter into a partnership with a payment processor. They will be the one who can help you with the mobile transaction which takes place using any card.
You will have to pay the processor a certain amount of money on every transaction. This is because they are giving you training and also helping you in processing data. You will have to download an application from the processor and provide information to register yourself.
Then if you click on the phone payment option where you have to fill in details to register yourself. Nowadays they are using chip tech so the company will give you a card processor which reads chip also to tale payment.