Chargebacks (also known as customer deductions and short pays), can cause a domino effect with many types of merchants. MWE Partner Craig Savell, CPA talks about the positive aspects of chargebacks in a recent Big Ideas for Small Business blog post.
“Craig Savell, CPA, who is an accounting and auditing partner with Margolin, Winer & Evens LLP in New York, advises that the best way to take full advantage of chargebacks to which you are entitled is to:
•Understand the terms of your agreements. What are the volume thresholds? Is it up to you to request the chargeback?
•Keep good records. Track you purchases in accordance with the volume discount thresholds.”