TIPS Chargeback Accounting

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=DfvXD1pAteI

Want to see how Chargeback Gurus can help your business control your chargebacks? • Schedule a demo with us here: https://hubs.ly/H0mgh-T0 • To understand how chargebacks are really affecting your company's bottom line, you must understand how to account for them. A chargeback occurs when a customer disputes a transaction that has already occurred. The merchant then has the opportunity to respond to the dispute and re-present the transaction to the issuing bank. Chargebacks also come with various fees associated with them that vary depending on the card network and bank. It can be a complicated process with many different parties, so understanding the accounting for it is important. • Chargebacks are not the same as refunds, and should not fall under cost of goods sold. Initially, the chargeback should be posted to an account with a name like Accounts Receivable - Chargebacks assuming that you will go through the chargeback representment process and recover the lost revenue. If you fight and win the chargeback, this account can be cleared off the books. However, if you do not end up winning the dispute or chose not to fight it at all (such as in the case of true fraud), you can write it off by charging the Bad Debts Expense account. • For help with chargebacks, some merchants choose to trust a third-party chargeback management services company, like Chargeback Gurus, with preventing and recovering these disputes. • Read the article: • https://www.chargebackgurus.com/blog/... • ©Chargeback Gurus 2020 • Production: Tyler DeLarm • Narration: Sarah Rife

#############################

New on site