By and large the most important risk in an online business processing credit cards is the chargeback. It is the reversal of the payment made by the customer back to his account. A claim for a chargeback may arise in situations where the product delivered is faulty or the product is not as promised, or there has been processing errors. But by far, the most important factor in this is the case of fraudulent transaction which takes place usually with stolen cards.
The threats:
The threats posed by a chargeback are very …