Which of the following charging conventions incurs charge-backs to the consumer after a payment is made?

The charging convention that incurs charge-backs to the consumer after a payment is made is OUR. This method involves the sender covering all charges associated with the payment, meaning the consumer (the sender) bears the costs of fees that emerge after the transaction is completed.

When a payment is conducted on an OUR basis, the sender pays all related charges upfront, and any fees that may arise later, such as charges from intermediary banks or from the receiving bank, do not impact the beneficiary. In this case, if any dispute arises after the payment has been made, such as a reversal or a charge-back initiated by the consumer’s bank, it may impact the sender directly since they are the one who paid all the fees initially.

In contrast, SHA (Shared) refers to a system where both the sender and recipient share the transaction costs, BEN (Beneficiary) indicates that all costs are borne by the recipient, and FREE means that the sender pays all costs, but these do not impose charge-backs on the consumer in the same way OUR does. Therefore, the OUR method is uniquely positioned to result in charge-backs, making it the correct choice in this context.