Charge backs take money away from a retailer's bottom line. The charge back has been called the parking ticket or traffic ticket of the retail industry. A charge back indicates that a retailer has failed to satisfy a customer. The most common way for a retailer to is that the retailer has sold defective merchandise. The merchandise may have been damaged somewhere in the supply change. An item is occasionally returned when an item does not meet the needs of a particular consumer. The customer assumes the role of the meter maid of the traffic cop. The downside of charge backs is that the charge backs cause ill-will among the employees of the store. The generation of ill-will can cause an employee to feel that his job is taking a toll on his mental and physical health. The employee may seek employment elsewhere after a few weeks, months or years of this treatment. Charge-backs may cause difficulty for employees, but they are necessary for a retailer who wants to maintain good will with his customers. His customers are the reason for his business. If a retailer does not take back effective merchandise, the consumer will find another place to meet his needs. Charge backs affect more than just the retailer. Retail EDI systems use charge backs for vendor management. The charge backs are done to force compliance with the rules of a retailer. The retailer can reduce his bottom line, but a charge back is not supposed to be used to make a profit. A retailer with harsh charge back policies may find that the vendors are not willing to deal with the policies. The vendors also need to make money to stay in business. . If the vendors do not make money by selling to a store, they simply take that store off of the list of businesses with whom they do business. The retailer and the vendors need to know how charge backs work, how to use them and how to avoid an unnecessary charge back. A single mistake probably will not upset a business's operations. A lot of mistakes on charge backs can bankrupt a company.