Credit Repair effective against improper chargebacks

Among the many protective features credit cards offer is the popular chargeback service, which allows consumers to dispute funds for transactions that were not performed to the cardholder's satisfaction.

However, this process could become more difficult, as U.S. Digital Transactions Corporation announced this week it will offer a chargeback recovery service that will help businesses recoup these disputed funds. It will also report consumers who neglect to make these payments to major credit bureaus.

"The merchant must comply with regulations set forth by the card associations to refute the chargeback, and most often the merchant ends up losing the revenue," Greg Wooten, chief executive officer of US Digital, told Consumer Affairs. "A merchant can also lose their ability to accept credit [or] debit cards if the percentage of chargebacks is too high."

However, many of these claims may be for purchases that were never made. As a result, consumers who experience this action should contact a credit repair company.

By speaking with a credit lawyer, individuals can discuss ways to remove these charges from their credit reports and avoid the financial harm often associated with credit damage.