If I lose a chargeback, does the money come from me, or does it come from the buyers credit card company?

Any time credit card payments are involved in a transaction, there's always the risk of a chargeback. Sometimes buyers are not satisfied with their purchases, or their order never arrives, or their credit card has been used fraudulently. Many sellers factor potential chargeback losses into the cost of doing business.

That said, there are some steps you can take to reduce your risk. Buyers may not resort to a chargeback if they can talk to you about the issue first. Provide an email address or phone number, or even call buyers in advance when you're selling higher priced items.

No one likes to wait, so do your best to respond quickly and professionally to all reasonable buyer inquiries. If a customer tells you that they intend to file a chargeback with their credit card company, ask them to open a dispute in the PayPal Resolution Center instead. This will give you and your buyer the chance to work things out on your own.

Make sure your return and refund policies are easy to find and understand on your website and all your auction listings. Please note: some laws and credit card issuer policies stipulate that buyers have chargeback rights for merchandise that is not delivered or is defective, even if your policy indicates that all sales are final and that you do not allow returns. Following these guidelines will help you reduce your risk.

Equally important, however, is being aware of chargeback fraud. The item never arrived:Give your buyers realistic delivery dates so they don't prematurely file a chargeback. Ship packages with tracking numbers and signature confirmation to provide proof of receipt.

(Postal insurance is also helpful - you can be reimbursed if the package is lost.) The item did not meet the buyer's expectations:Make sure you describe items as accurately as possible.