If a merchant does not respond to a credit card dispute, the credit card company will still make a decision about whether to uphold or overturn the disputed charge
However, without the merchant’s input, the credit card company may be more likely to side with the customer and overturn the charge
In case of a successful chargeback, the merchant would have to reimburse the disputed amount along with any additional charges and fines incurred
They may also be subject to additional penalties or fines from the credit card company, and their reputation and customer relationships may be negatively impacted
In addition, if a merchant frequently fails to respond to disputes or is found to be engaging in fraudulent or unethical practices
they may be subject to further action from the credit card company or regulatory authorities
This could include fines, legal action, or even the revocation of their ability to accept credit card payments
To avoid the negative consequences of failing to respond to credit card disputes, merchants should take several proactive steps