What is an inappropriate practice regarding charges to avoid chargebacks?

Charging multiple small amounts in a day is considered inappropriate practice to avoid chargebacks because it can create confusion and potentially lead to disputes with customers. This approach might be seen as an attempt to circumvent a customer's ability to dispute a larger single transaction. Instead of presenting one clear charge, breaking it down into various smaller transactions can mislead the customer about the total cost, making it harder for them to recognize what they are actually being billed for. This practice raises red flags for payment processors and may result in a higher risk of chargebacks, as consumers may not recognize or agree to these fragmented charges.

In appropriate practices, charging high fees at the end of the rental can be transparently communicated to customers beforehand, ensuring they are aware of total costs. Obtaining a signature for all charges adds a layer of consent and acknowledgment from the customer, promoting accountability. Making charges within the correct time frame aligns with standard business practices, helping to establish clarity and integrity in financial transactions.