Back Charge

  

Back, back, back it up. That's what back charges are all about: charging you now for something that should have been billed in the past.

A back charge might happen if a borrower didn't pay their bill in full, or if there's an error that was corrected on what someone owes someone else.

Related or Semi-related Video

Finance: What is Chargeback?2 Views

00:00

Finance a la shmoop what is a chargeback? oh people it's death by credit card for [Person swipes credit card]

00:09

the company the company who sold you a $25 a month

00:12

JDate platinum account membership and now you're disputing that charge

00:17

claiming it's false especially to your husband and you are charging back that

00:23

25 bucks to the kindly loving people at JDate they note that this is a huge

00:28

problem for them because if they violate a given ratio of chargebacks to

00:33

successful uncontested charges say that threshold is 2% of all charges being

00:39

charged back well then JDate runs a very high risk that their ability to even use

00:45

the credit card system will be taken away by the credit card companies that [Man discussing chargebacks]

00:50

is Visa MasterCard and AMEX could collectively say we don't want you [VISA, Mastercard and AMEX appear together]

00:56

anymore as a client and if they do that unless they're ready to take cash in the

01:01

mail or paper checks which is well just not how people buy things on the [Person places check in the mail box]

01:05

internet stripe, Square, Apple pay, PayPal venmo all those services combined make

01:11

up like 5% or less of all payments made online why well simple people like their

01:16

plastic so yeah charge backs are a dangerous thing for little companies

01:21

when they go wrong and for consumers they're a big fat weapon to go get your [Woman carrying rocket launcher of charge buybacks]

01:26

charges back and it's a bad thing when all this goes wrong just like online

01:32

dating you want to be careful out there people

Up Next

Finance: How Do Credit Card Companies Work?
115 Views

How do credit card companies work? Credit card companies are, in a way, lenders. They give consumers a rectangular piece of plastic that allows the...

Finance: What are Collection Agencies?
12 Views

What are Collection Agencies? Collection agencies are debt collection companies that specialize in recovery of overdue or defaulted debt obligation...

Finance: What is the Fair Debt Collection Practices Act?
1 Views

What is the Fair Debt Collection Practices Act? The Fair Debt Collection Practices Act is the set of rules that debt collectors follow. These rules...

Finance: What is the Credit Rating Agency Reform Act Of 2006?
4 Views

What is the Credit Rating Agency Reform Act Of 2006? As signed by President George W. Bush in 2006, the Credit Rating Agency Reform Act required th...

Find other enlightening terms in Shmoop Finance Genius Bar(f)