Are chargeback effects severe for merchants?

Yes. Chargebacks effects result in a great deal of lost revenue, lost product, fees and review time for merchants. Given issuing banks’ desire to please their customers and consumer protection laws, chargebacks often result in a forced refund for the merchant. Revenue and product is lost and chargeback fees are imposed on merchants by issuing banks costing the retail industry tens of billions of dollars annually, not to mention the time consumed by trying to fight unjust chargebacks.