How often should a credit card be run to avoid chargebacks?

• A. Every hour
• B. Once a day
• C. Once in a 24-hour window
• D. Multiple times per user

Answer: (C)

Running a credit card once in a 24-hour window is an effective way to manage transaction processes and reduce the risk of chargebacks. This approach helps in monitoring transactions without overwhelming the payment processing system or the customer with multiple charges.

Charging a card too frequently within a short period can lead to confusion for the customer and potentially trigger disputes, as users may not recognize why they are being charged multiple times. By establishing a clear practice of running the card once in a 24-hour window, businesses can ensure that they are maintaining customer trust while also streamlining their processing activities. It also aligns with typical business practices for repeat billing, allowing for a balance between cash flow management and customer satisfaction.

This method fosters a better customer experience, reducing the likelihood of chargebacks, as it is less likely to create confusion or dissatisfaction. It strikes a good balance between regular transaction verification and the need to maintain a positive relationship with the customer.