What is the primary purpose of a Billback process?

The primary purpose of a Billback process is to reduce interchange fees for transactions. In the context of electronic transactions, a Billback process involves charging the transaction fees back to the merchant once the transaction has been completed. This mechanism allows payment processors to manage the costs associated with these transactions more effectively. By using this approach, businesses can streamline their accounting practices and potentially negotiate lower fees by consolidating chargebacks and fees.

While promoting consumer satisfaction, providing discounts on future bills, and tracking consumer spending habits are relevant considerations in transaction processing and customer relationship management, they do not encapsulate the core function of the Billback process as it pertains specifically to managing and reducing transaction costs.