How Credit Card Processing Companies for Small Businesses Define Retrievals
When you run a small business, you need to be an expert in a wide range of areas. You need to deal with inventories, expenses, and marketing among a number of other things. Most of the tasks you deal with can be challenging yet enjoyable. However, one of the most dreaded aspects of running a small business is the prospect of dealing with chargebacks and retrieval requests.
Some businesses deal with these on a daily basis, while others rarely have to deal with them. Regardless, it’s good to know how credit card processing companies for small businesses define retrievals and chargebacks, and how they can impact your business.
Retrieval Request Defined
A retrieval request occurs when the card issuer asks the merchant or customer for proof of purchase. This proof can be a receipt or the ticket of transaction. The cardholder’s bank or issuer will typically only request information about a charge or purchase that may be in dispute or question. The reasons credit card processing companies for small businesses may request a retrieval can vary from potential fraud to a processing error to an incomplete or inaccurate transaction.
Typically a retrieval request will be initiated by a customer if they don’t recognize a charge or feel the charge amount is different than the amount agreed upon during the sale. Regardless of the reason for the request, the bank will ask for a copy of the transaction authorisation to verify the authenticity of purchase and amount.
Credit card processing companies for small businesses require this proof within a specified amount of time, typically a few days to a week. When proof is delivered the retrieval request is cancelled and no further action is typically required. However, if adequate proof is not found or delivered this can lead to the initiation of a chargeback.
A chargeback typically occurs when a retrieval request is not fulfilled. Chargebacks can be detrimental to your business. That’s because a chargeback is a return of funds to a customer. But this is more than a simple refund. When credit card processing companies for small businesses initiate a chargeback you lose the purchase amount, the product or service, and the time and energy put into fulfilling the sale and delivery of the goods.
What’s more is that your payment provider will typically charge a fee associated with the chargeback. If your business incurs a large amount of chargebacks your processor will most likely increase your rates and fees and may even terminate your account.
Now that you know what a retrieval request is and how it can negatively impact your business, you’re probably wondering how you can avoid them. The best way to avoid retrieval requests is to operate a professional site, complete all transactions in a timely manner, keep and maintain detailed records, and choose a payment processor that helps you avoid fraudulent purchasing.
We Can Help You Avoid Retrievals
Allied Wallet offers safe and secure payment processing that will help you authorize authentic transactions and avoid retrieval requests and chargebacks. Our award-winning service provides powerful tools and resources so you can accept payment confidently. Contact us today to discuss your payment needs.