What is good about vendor chargebacks Whats bad about vendor

Solution

Answer:-

Advantages of chargebacks:-

In business, chargebacks are important because it enables services to be streamlined consistent with the requirements of the customers,thus providing more efficiency.

It improves relationships among the various stakeholders and individuals in a business.

It cuts off the unnecessary demands from users, and this also promotes more efficiency and effectiveness.

Creates a more marketing mentality for businesses.

Provides more control and accountability of resources in an organization or firm.

Disadvantages of vendor chargebacks:-

If not applied well, it can destroy the relationships among the vendors, and thus affect business negatively.

The charging and billing processes might not be clear to the vendors and customers.

Retailers such as Target and Walmart need to develop strategies to ensure that they effectively control and manage their retailers. Vendor chargebacks are therefore good because they would ensure that businesses do not incur extra costs or lose a lot of money in inefficiencies in their processes(Hayashi, Markiewicz & Sullivan, 2016). For this reason, it improves the financial position of businesses and ensures that there is efficiency and effectiveness in relationships and interactions.

References:-

Hayashi, F., Markiewicz, Z., & Sullivan, R. (2016). Chargebacks: Another Payment Card Acceptance Cost for Merchants. The Federal Reserve Bank Of Kansas City Research Working Paper. http://dx.doi.org/10.18651/rwp2016-01