\u201cChargeback scheme.\u201d The term may sound a bit nefarious.<\/p>\n\n\n\n
But, chargebacks play an important role in protecting consumers from credit card fraud. The chargeback scheme is simply the parameters that must be followed by all parties involved in the chargeback process.<\/p>\n\n\n\n
Governments generally mandate that card networks implement some sort of mechanism to fight invalid credit card charges, and provide a road map for banks to follow. The different players in the process, however, have a little room to tweak the specifics. In other words, although the same basic steps are required, the details of the chargeback scheme can vary from brand to brand, or even bank to bank.\u00a0<\/p>\n\n\n\n
In this post, we look at what a chargeback scheme is, the steps involved in the process, and how new legislation is impacting the process.<\/p>\n\n\n
We should start by recognizing that, while the word \u201cscheme\u201d has some negative connotations in the US, the base meaning is simply a plan or an organized system. That\u2019s the way the word is used when we\u2019re talking about a chargeback scheme; an organized set of rules and procedures for filing a consumer chargeback.<\/p>\n\n\n\n
The term \u201cchargeback scheme\u201d is used predominately in the UK. In the US, however, banks and card brands are more likely to say \u201cchargeback process\u201d or \u201cchargeback system.\u201d The core idea is still the same though.<\/p>\n\n\n\n