{"id":74776,"date":"2024-11-20T10:05:13","date_gmt":"2024-11-20T15:05:13","guid":{"rendered":"https:\/\/chargebacks911.com\/?p=74776"},"modified":"2025-09-26T11:12:27","modified_gmt":"2025-09-26T15:12:27","slug":"billback","status":"publish","type":"post","link":"https:\/\/chargebacks911.com\/billback\/","title":{"rendered":"Billback"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">What is a Billback? Is This Method the Right Fit for My Business?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Okay. Imagine this scenario: a teenager asks their parent to download a big, new triple-A game.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHow much is it?\u201d the parent asks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201c$50,\u201d the teenager answers. \u201cI have the money, but I don\u2019t have a credit card. If you buy it I\u2019ll pay you back.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The money is exchanged, the game is purchased, end of story\u2026 at least until the parent checks their credit card statement, and sees that taxes and a surcharge were added. So the parent goes to the teenager and says \u201cYou owe me another $7.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhy?\u201d the teen asks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cYou promised you would pay for it,\u201d the parent says. \u201cYou gave me $50, but the bill came to more than that. So you owe me the difference.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s kind of like how billback pricing works. In this post, we\u2019ll look at how billbacks apply to credit card transactions, how they differ from chargebacks, and whether this model is a good or bad deal for merchants.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large p-top-illustration\"><img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2024\/11\/Illustration-Receipt-Credit-Card-Coins-Price-Difference.svg\" alt=\"\" class=\"wp-image-74901\"\/><\/figure>\n\n\n<div class=\"c-suggested-reading\"><div class=\"c-suggested-reading__inner\"><div class=\"c-suggested-reading__header\"><h3 class=\"c-suggested-reading__headline\">Recommended reading<\/h3><\/div><ul class=\"c-suggested-reading__items\"><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/merchant-identification-number\/\" class=\"c-suggested-reading__link\">Merchant Identification Numbers | How Do MIDs Work?<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/issuer-declines\/\" class=\"c-suggested-reading__link\">Issuer Declines: 7 Reasons They Happen &amp; How to Fix Them<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/visa-interchange-fees\/\" class=\"c-suggested-reading__link\">Visa Interchange: Processing Rates &amp; Fees, Explained<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/suspicious-activity-reports-sars\/\" class=\"c-suggested-reading__link\">Suspicious Activity Reports: When Do SARs Get Filed &amp; Why?<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/open-banking-rules\/\" class=\"c-suggested-reading__link\">What Is Open Banking? Data to Improve Service &amp; Stop Fraud<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/payment-fraud-detection-prevention\/\" class=\"c-suggested-reading__link\">Top 10 Payment Fraud Detection &amp; Prevention<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Billback?<\/h2>\n\n\n\n<dl class=\"definition_box\"><div class=\"definition\"><div class=\"definition_top\"><h3><dt>Billback<\/dt><\/h3><p>[noun]\/bil \u2022 bak\/<\/p><\/div><dd><p>A charge applied to merchants for transactions that were processed during the preceding month. Credit card processors use billbacks when transaction costs exceed what was projected.<\/p><\/dd><\/div><\/dl>\n\n\n\n<p class=\"wp-block-paragraph\">Billback pricing refers to a billing model by which your processor quotes you a specific per-transaction fee for credit card processing. This is called your <em>qualified rate<\/em>, and it\u2019s the rate at which you'll be billed for each transaction, every month. The next month, however, your invoice will also include an additional charge, based on the <em>actual<\/em> transaction processing costs from the month before.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, you\u2019ll pay an attractively low flat rate cost for each sale, <em>as long as <\/em>the actual processing costs\/interchange fees fall at or below the qualified rate. Any overages in excess of what you paid as your qualified rate will be \u201cbilled back\u201d to you in the next invoice.<\/p>\n\n\n\n<div class=\"c-category-alert c-category-alert--red\">\n    <span class=\"c-category-alert--red__icon\">\n        <object><\/object>\n    <\/span>\n    <span class=\"c-category-alert--red__heading\">IMPORTANT!<\/span>\n    <p class=\"c-category-alert--red__description\">This should not be confused with hotel billbacks. This is a situation where the travel expenses of an organization\u2019s employee are paid for by a travel management agency, which is then reimbursed by the employer at a later date.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">It almost sounds like a bait-and-switch; you\u2019re sold on one rate, then end up paying more. But, the fact of the matter is that <a href=\"https:\/\/chargebacks911.com\/interchange-fees\/\">interchange fees<\/a> can vary based on the type of transaction. For example, <a href=\"https:\/\/chargebacks911.com\/glossary\/debit-card-2\/\">debit cards<\/a> generally have lower interchange fees than rewards cards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Paying a set amount for processing each transaction during the billing period, then getting billed back for the difference, actually simplifies the process. Otherwise, you\u2019d have to calculate the total fees for each sale in real time.<\/p>\n\n\n\n<div class=\"c-category-alert c-category-alert--grey\">\n    <span class=\"c-category-alert--grey__icon\">\n        <object><\/object>\n    <\/span>\n    <span class=\"c-category-alert--grey__heading\">Did You Know?<\/span>\n    <p class=\"c-category-alert--grey__description\"><em>Billback pricing is also known as blended rate pricing, mixed rate pricing, or enhanced reduced recovery (ERR).<\/em><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How Does Billback Pricing Work?<\/h2>\n\n\n\n<div class=\"c-category-alert c-category-alert--teal\">\n    <span class=\"c-category-alert--teal__icon\">\n        <object><\/object>\n  <\/span>\n    <span class=\"c-category-alert--teal__heading\">TL;DR<\/span>\n    <p class=\"c-category-alert--teal__description\">The processor charges the merchant a low, qualified rate. The processor then calculates the actual cost of service, and invoices the merchant for the difference the following month.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s say your processor offers a flat rate \u2014 1.8%, for example \u2014 for each one of your transactions for the month. That means that for every transaction you process that month,&nbsp; you pay a fee equivalent to 1.8% of the total transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we mentioned earlier, though, interchange rates are going to vary, so the 1.8% figure won\u2019t necessarily cover the provider\u2019s costs. So, at the end of the month, your processor looks at all those transactions and determines the difference between the real cost of processing, and the amount you paid. Then, on the following month\u2019s statement, you\u2019ll get a billback invoice for the difference between the flat rate and the actual cost of the non-qualifying transactions.<\/p>\n\n\n\n<div class=\"c-shortcode-ebook c-shortcode-ebook--whitepaper\"><a href=\"https:\/\/chargebacks911.com\/chargeback-field-report\/\" class=\"c-shortcode-ebook__block\"><div class=\"c-shortcode-ebook__inner\"><div class=\"c-shortcode-ebook__graphics\"><div class=\"c-shortcode-ebook__graphics-inner\"><div class=\"c-shortcode-ebook__ipad\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/ipad--field-report.png\" alt=\"2022\" \/>\n\t\t\t<\/div>\n\t\t\t<div class=\"c-shortcode-ebook__cover\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/cover--field-report.png\" alt=\"2022\" \/>\n\t\t\t<\/div><\/div><\/div><div class=\"c-shortcode-ebook__content\"><span class=\"c-shortcode-ebook__title\"><span>A Real-World Look at<\/span> Chargeback Management<\/span><p class=\"c-shortcode-ebook__description\">Based on a survey of over 400 merchants, the report presents a comprehensive, cross-vertical look at the current state of chargebacks and chargeback management.<\/p><span class=\"c-btn c-btn--primary c-shortcode-ebook__btn\">Access the FREE Report<\/span><\/div><\/div><div class=\"c-shortcode-ebook__close\" data-shortcode-ebook-close=\"true\"><\/div><\/a><div class=\"c-shortcode-ebook__overlay\"><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">In most cases, the invoice won\u2019t show the processing volume nor the fee breakdown, and there\u2019s a reason for that. Without a clear look at that data, it\u2019s almost impossible to calculate what rate you\u2019re paying. That works to the processor\u2019s advantage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Billback pricing is not necessarily dishonest, but it can be misleading. If you don\u2019t see both figures, it\u2019s easy to think you\u2019re paying a single flat-rate for all transactions you take. At the same time, most merchants only look at the low rate and the convenience of billback pricing; not the real cost involved.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Weighing the Pros &amp; Cons of Billback Pricing<\/h2>\n\n\n\n<div class=\"c-category-alert c-category-alert--teal\">\n    <span class=\"c-category-alert--teal__icon\">\n        <object><\/object>\n  <\/span>\n    <span class=\"c-category-alert--teal__heading\">TL;DR<\/span>\n    <p class=\"c-category-alert--teal__description\">Billbacks often offer lower upfront rates and simplified accounting. At the same time, the process is complex and hard to decipher, and typically costs more in the long run.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">So, is billback pricing a bad thing? Well, that might depend on who you talk to. There are arguments for and against this billing model:<\/p>\n\n\n\n<div class=\"c-two-columns\">\n    <div class=\"c-two-column\">\n        <div class=\"c-small-icon-list\">\n    <div class=\"c-small-icon-list__icon\">\n        <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/07\/NEW-ICONS-DuoTone-like-2.svg\" alt=\"Pro\"\/>\n    <\/div>\n<div class=\"c-small-icon-list__content\"><p><strong style=\"color: var(--color-secondary-blue)\">Pro:<\/strong> The low advertised processing rates can seem pretty attractive to an organization without a long-term view, or to merchants who aren\u2019t looking at the full picture.<\/p><\/div>\n<\/div>\n\n<div class=\"c-small-icon-list\">\n    <div class=\"c-small-icon-list__icon\">\n        <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/07\/NEW-ICONS-DuoTone-like-2.svg\" alt=\"Pro\"\/>\n    <\/div>\n<div class=\"c-small-icon-list__content\"><p><strong style=\"color: var(--color-secondary-blue)\">Pro:<\/strong>  If the actual cost of the transaction can be higher than the flat rate, there\u2019s also a chance it could be lower, too. The two should cancel each other out, or maybe even result in a refund.<\/p><\/div>\n<\/div>\n\n<div class=\"c-small-icon-list\">\n    <div class=\"c-small-icon-list__icon\">\n        <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/07\/NEW-ICONS-DuoTone-like-2.svg\" alt=\"Pro\"\/>\n    <\/div>\n<div class=\"c-small-icon-list__content\"><p><strong style=\"color: var(--color-secondary-blue)\">Pro:<\/strong> Using a billback model lets you plan your costs and anticipate expenses. Since you know you\u2019ll be charged the same amount for each transaction, you can easily calculate your monthly fees.<\/p><\/div>\n<\/div>\n    <\/div>\n\n    <div class=\"c-two-column\">\n        <div class=\"c-small-icon-list\">\n    <div class=\"c-small-icon-list__icon\">\n        <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/07\/NEW-ICONS-DuoTone-dislike-2.svg\" alt=\"Con\"\/>\n    <\/div>\n<div class=\"c-small-icon-list__content\"><p><strong style=\"color: var(--color-primary)\">Con:<\/strong> Attractive initial rates may sound good, they\u2019re mostly just smart marketing. Lack of transparency in the billback process makes it almost impossible to know what you\u2019re actually paying.<\/p><\/div>\n<\/div>\n\n<div class=\"c-small-icon-list\">\n    <div class=\"c-small-icon-list__icon\">\n        <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/07\/NEW-ICONS-DuoTone-dislike-2.svg\" alt=\"Con\"\/>\n    <\/div>\n<div class=\"c-small-icon-list__content\"><p><strong style=\"color: var(--color-primary)\">Con:<\/strong> The pricing model is set up to make that scenario rare. The processor advertisers the lowest rates possible, meaning the amount paid at first is almost always less than <a href=\"https:\/\/chargebacks911.com\/interchange-fees\/\" title=\"Interchange Fees\" data-wpil-monitor-id=\"384\">the likely interchange fees<\/a>.<\/p><\/div>\n<\/div>\n\n<div class=\"c-small-icon-list\">\n    <div class=\"c-small-icon-list__icon\">\n        <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/07\/NEW-ICONS-DuoTone-dislike-2.svg\" alt=\"Con\"\/>\n    <\/div>\n<div class=\"c-small-icon-list__content\"><p><strong style=\"color: var(--color-primary)\">Con:<\/strong> As we\u2019ve seen, transparency is just an illusion. You may be able to figure out how much you\u2019ll pay this month, but you have to add in cost overruns from last month. And those numbers are nearly indecipherable.<\/p><\/div>\n<\/div>\n    <\/div>\n<\/div>\n\n\n<div class=\"cta-ab\"><span class=\"cta-ab__cta-content\">Billback\u2026 or chargeback? Not knowing the difference can cost you. Our professionals can help you handle all the pieces on the ever-shifting financial landscape.<\/span><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-f46a4ca9-3755-4911-b18a-8ad344729c8e\"><span class=\"hs-cta-node hs-cta-f46a4ca9-3755-4911-b18a-8ad344729c8e\" id=\"hs-cta-f46a4ca9-3755-4911-b18a-8ad344729c8e\"><!--[if lte IE 8]><div id=\"hs-cta-ie-element\"><\/div><![endif]--><a href=\"#\"  target=\"_blank\" data-open-demo-modal><img decoding=\"async\"  class=\"hs-cta-img\" id=\"hs-cta-img-f46a4ca9-3755-4911-b18a-8ad344729c8e\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/2611577\/f46a4ca9-3755-4911-b18a-8ad344729c8e.png\"  alt=\"REQUEST A DEMO\"\/><\/a><\/span><\/span><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Billbacks vs. <em>Enhanced<\/em> Billbacks<\/h2>\n\n\n\n<div class=\"c-category-alert c-category-alert--teal\">\n    <span class=\"c-category-alert--teal__icon\">\n        <object><\/object>\n  <\/span>\n    <span class=\"c-category-alert--teal__heading\">TL;DR<\/span>\n    <p class=\"c-category-alert--teal__description\">Enhanced billbacks work the same as typical billbacks, but may include a variety of additional fees.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re on the fence about accepting a billback pricing model, someone offering an enhanced billback system might tip the scales. Here\u2019s the problem: \u201cenhanced\u201d in this case only works to the provider\u2019s benefit; not yours. They\u2019re essentially asking you to enhance their profits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019re still charged a flat rate. And, as with regular billback models, you\u2019re charged that rate on every transaction for that month\u2019s statement, along with the difference between the flat rate and the actual costs for the previous month. With enhanced billing, though, you\u2019ll also be invoiced for an additional markup for value-added services. This can include administrative expenditures, performance-based fees, management services, or something similar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fact is that you\u2019ll be paying more because you\u2019ve agreed to pay for services that your provider can easily tack onto the already confusing statement. It\u2019s like all the miscellaneous costs tacked onto a new car\u2019s sticker price; it\u2019s hard to tell whether you\u2019re getting any real value for the extra money you\u2019re paying.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use Cases for Billbacks<\/h2>\n\n\n\n<div class=\"c-category-alert c-category-alert--teal\">\n    <span class=\"c-category-alert--teal__icon\">\n        <object><\/object>\n  <\/span>\n    <span class=\"c-category-alert--teal__heading\">TL;DR<\/span>\n    <p class=\"c-category-alert--teal__description\">A billback model can be beneficial when the amount you charge customers can vary from month to month.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">All of this can make it sound like billback pricing is always a bad deal. But, there are some situations where it can be a good option.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think about scenarios where customers can be charged a fluctuating amount on a regular billing cycle. For example:<\/p>\n\n\n\n<ul class=\"wp-block-cb911-block-library-checklists c-checklist c-checklist--style-1 c-checklist--color-red two-column-list\"><li class=\"c-checklist__item\">Recurring billing<\/li><li class=\"c-checklist__item\">Electricity and utilities<\/li><li class=\"c-checklist__item\">Offering multiple pricing tiers<\/li><li class=\"c-checklist__item\">Software as a Service (SaaS)<\/li><li class=\"c-checklist__item\">Billing customers for irregular add-ons<\/li><li class=\"c-checklist__item\">Calculating costs based on consumption<\/li><\/ul>\n\n\n\n<div class=\"c-shortcode-ebook c-shortcode-ebook--whitepaper\"><a href=\"https:\/\/chargebacks911.com\/chargeback-field-report\/\" class=\"c-shortcode-ebook__block\"><div class=\"c-shortcode-ebook__inner\"><div class=\"c-shortcode-ebook__graphics\"><div class=\"c-shortcode-ebook__graphics-inner\"><div class=\"c-shortcode-ebook__ipad\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/ipad--field-report.png\" alt=\"2022\" \/>\n\t\t\t<\/div>\n\t\t\t<div class=\"c-shortcode-ebook__cover\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/cover--field-report.png\" alt=\"2022\" \/>\n\t\t\t<\/div><\/div><\/div><div class=\"c-shortcode-ebook__content\"><span class=\"c-shortcode-ebook__title\"><span>A Real-World Look at<\/span> Chargeback Management<\/span><p class=\"c-shortcode-ebook__description\">Based on a survey of over 400 merchants, the report presents a comprehensive, cross-vertical look at the current state of chargebacks and chargeback management.<\/p><span class=\"c-btn c-btn--primary c-shortcode-ebook__btn\">Access the FREE Report<\/span><\/div><\/div><div class=\"c-shortcode-ebook__close\" data-shortcode-ebook-close=\"true\"><\/div><\/a><div class=\"c-shortcode-ebook__overlay\"><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Trying to determine fair pricing for processing services can be a nightmare when any of these factors are at play. Even just providing an array of products or services can make it hard to determine whether you\u2019re getting a good deal from your processor using a conventional billing schedule.<\/p>\n\n\n\n<div class=\"c-category-alert c-category-alert--grey\">\n    <span class=\"c-category-alert--grey__icon\">\n        <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/06\/reminder-hands-04.svg\" width=\"20\" height=\"20\" alt=\"Finger bullet\" \/>\n    <\/span>\n    <span class=\"c-category-alert--grey__heading\">title<\/span>\n    <p class=\"c-category-alert--grey__description\">text goes here<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The billback model, however, allows you to consolidate all those charges into a single invoice, summarizing all the services or products used. Having a single, up-front transaction charge (as opposed to creating different invoices for different services) simplifies processing, and can make it easier to anticipate your costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Billbacks vs. Chargebacks<\/strong><\/h2>\n\n\n\n<div class=\"c-category-alert c-category-alert--teal\">\n    <span class=\"c-category-alert--teal__icon\">\n        <object><\/object>\n  <\/span>\n    <span class=\"c-category-alert--teal__heading\">TL;DR<\/span>\n    <p class=\"c-category-alert--teal__description\">Billbacks are a processing payment method. Chargebacks are a consumer protection system that can be easily abused to commit\u00a0 fraud.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The names may sound similar, but a billback and a <a href=\"https:\/\/chargebacks911.com\/chargebacks\/\">chargeback<\/a> are two completely different animals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Billback pricing involves flat-rate processing costs which are later adjusted to reflect additional charges or credits. Chargebacks, on the other hand, are customer refunds forced by the <a class=\"wpil_keyword_link\" href=\"https:\/\/chargebacks911.com\/the-issuing-bank\/\" title=\"issuing bank\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"49\">issuing bank<\/a>. While the chargeback process is an important consumer safety mechanism, chargebacks are increasingly misused by customers seeking a <a href=\"https:\/\/chargebacks911.com\/chargeback-vs-refund\/\" title=\"Chargeback vs. Refund\" data-wpil-monitor-id=\"94\">convenient refund<\/a> or attempting to get something for free.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Both billbacks and chargebacks happen post-transaction. But, where billbacks are an agreed-upon arrangement for monthly payments to your processor, you can\u2019t anticipate chargebacks. They pop up weeks later, long after you thought a transaction over and done. This can wreak havoc on your cash flow\u2026 and your bottom line.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Effective chargeback protection requires a comprehensive approach that addresses every aspect of the problem. The experts at Chargebacks911\u00ae have been involved with all areas of chargeback prevention and revenue recovery for over a decade. We can save you time and headaches and up your ROI. For more information, contact us today.<\/p>\n\n\n\n<div class=\"c-shortcode-faq\" data-shortcode-faq=\"true\"><div class=\"c-shortcode-faq__inner\"><h2 class=\"c-shortcode-faq__heading joli-heading\" id=\"faqs\">FAQs<\/h2><div class=\"c-shortcode-faq__items\">\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What is the billback payment method?<\/h3><p class=\"c-shortcode-faq__answer\">The billback payment method is a billing model where a low per-transaction rate is assessed initially, with actual costs calculated later and the difference billed to the merchant.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What is a billback example ?<\/h3><p class=\"c-shortcode-faq__answer\">Imagine that a transaction costs a processor 1.75% in interchange fees. The merchant and the processor have agreed on a 1.5% fixed rate for that transaction. In the first month, the processor will charge the 1.5% fixed rate for that transaction, regardless of the true cost.\u00a0<br \/><br \/>The following month, however, the processor will calculate those costs and bill the merchant for the difference owed for that transaction (an additional 0.25%, in this instance).<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What are billback charges?<\/h3><p class=\"c-shortcode-faq__answer\">Billback charges are additional fees that processors tack on to each invoice, above and beyond the billback amount itself. Because the costs are bundled together, it\u2019s often difficult for merchants to calculate what they are really paying for processing.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">How does a billback work?<\/h3><p class=\"c-shortcode-faq__answer\">For each credit card transaction, the processor bills the merchant a flat rate. If the actual rate is higher, the processor will invoice the merchant the next month to recoup the difference.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What is a billback invoice?<\/h3><p class=\"c-shortcode-faq__answer\">A billback invoice is a secondary bill issued to adjust a previous statement. When working with credit card transactions, this typically refers to an invoice sent to collect costs beyond the initial flat rate charge.<\/p><\/div><\/div>\n\n<\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<h2 class=\"wp-block-heading\">What is a Billback? Is This Method the Right Fit for My Business?&nbsp;<\/h2>\n<p>Okay. Imagine this scenario: a teenager asks their parent to download a big, new triple-A game.&nbsp;<\/p>\n<p>\u201cHow much is it?\u201d the parent asks.<\/p>\n<div><a class=\"btn-filled btn\" href=\"https:\/\/chargebacks911.com\/billback\/\" title=\"Billback\">Read More<\/a><\/div>\n","protected":false},"author":9192205,"featured_media":74963,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_crdt_document":"","inline_featured_image":false,"footnotes":""},"categories":[59],"tags":[71,80,79],"class_list":["post-74776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-banks","tag-payments","tag-technology"],"acf":[],"_links":{"self":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts\/74776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/users\/9192205"}],"replies":[{"embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/comments?post=74776"}],"version-history":[{"count":10,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts\/74776\/revisions"}],"predecessor-version":[{"id":88979,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts\/74776\/revisions\/88979"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/media\/74963"}],"wp:attachment":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/media?parent=74776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/categories?post=74776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/tags?post=74776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}