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Chargebacks

What is a chargeback?

If you have a chargeback on your account, a cardholder has raised a dispute about a transaction you ran using their payment details. The cardholder’s issuing bank instructs your processor to remove the dollar amount from your account and your processor mails you a chargeback notification.… Read More “What is a chargeback?”

The chargeback process

There are four stages in the chargeback process:

  1. Retrieval request
  2. First chargeback
  3. Second chargeback
  4. Arbitration

Retrieval request

When a cardholder disputes a transaction, their issuing bank asks you to send evidence about the transaction. This is known as a retrieval request.… Read More “The chargeback process”

How can I avoid chargebacks?

It is important that you take actions to help prevent chargebacks because:

  • Your processor charges you a fee for each chargeback you receive.
  • Multiple chargebacks may result in compliance issues.
Note: Taking action to prevent chargebacks does not guarantee that you won’t receive any chargebacks.
… Read More “How can I avoid chargebacks?”

What additional evidence can a keyed-entry or MOTO merchant provide to defend against chargebacks?

In addition to the actions described in What is a chargeback?, you can also provide the following evidence:

Example evidence of the cardholder’s actions

  • Cardholder’s authorization for someone else to sign for goods or services on their behalf.
  • Release form or waiver that the cardholder signed that allows you to deliver packages to the cardholder’s address without requiring a signature, and an unsigned Proof of Delivery (POD).
… Read More “What additional evidence can a keyed-entry or MOTO merchant provide to defend against chargebacks?”

What additional evidence can an e-Commerce merchant provide to defend against chargebacks?

In addition to the actions described in What is a chargeback?, you can also provide the following evidence:

Evidence of the cardholder’s actions

  • Evidence that the cardholder used in a previous transaction that they didn’t dispute, for example:
  • IP address
  • Email address
  • Physical address
  • Telephone number
  • Transaction history if the cardholder is registered online, for example:
    • Type of device they used to checkout
    • IP address
    • Time and date of purchase
  • Evidence of the cardholder accessing your website after the transaction date
  • Evidence that the cardholder’s email address they used at the time of the purchase matches the email address they used to receive digital goods
  • A pickup form with the cardholder’s signature and a copy of their identification
  • A release form or waiver that the cardholder signed that allows you to deliver packages to the cardholder’s address without requiring a signature, and an unsigned Proof of Delivery (POD)
  • Evidence that the cardholder agreed to accept the goods or services as provided
  • Evidence that the cardholder has the goods or is using the service, for example, photographs or emails

    • Evidence of your actions

    • Written correspondence between you and the cardholder, which may include:
    • Letters
    • Emails
    • Photographs
    • Faxes
  • Invoice or Proof of Delivery (POD) that shows you shipped the goods before cancellation and the cardholder hasn’t returned them
  • Evidence that you shipped the goods to a positive AVS address and you obtained Proof of Delivery (POD)
  • A signed POD for domestic only deliveries
  • Evidence of shipping and delivery of any replacement goods
  • Explanation of why the transaction dates, your merchant name, or your merchant location is different to what the cardholder thought it would be

    • What can I do to help prevent chargebacks?

    … Read More “What additional evidence can an e-Commerce merchant provide to defend against chargebacks?”

    What additional evidence can a recurring billing or service-based merchant provide to defend against chargebacks?

    In addition to the actions described in What is a chargeback?, you can also provide the following evidence:

    Evidence of the cardholder’s actions

    • Signed contract that states the terms under which the cardholder could have canceled the service
    • Evidence that the cardholder is using the goods or services
    • Evidence that the cardholder canceled within the same month that you issued billing and provided partial services
    • Evidence that the cardholder did not attempt to cancel the services
    • Evidence that the cardholder cancelled on the same day as the transaction

    Evidence of your actions

    • Legally binding contract between you and the cardholder
    • A previous transaction that the cardholder has not disputed
    • Evidence that you issued a refund before the chargeback because the cardholder canceled the service
    • Evidence that you bill the cardholder after you provide services
    • Evidence that the transaction date was before the cancelation date

    What can I do to help prevent chargebacks?

    … Read More “What additional evidence can a recurring billing or service-based merchant provide to defend against chargebacks?”

    How can I defend myself against chargebacks?

    If you receive a chargeback, you should do the following:

    1. Follow the instructions on the chargeback notification.
    2. Respond by the due date listed on the notification.
    3. Provide a written reply addressing all of the cardholder’s concerns.
    4. Provide copies of all transaction documents, including, but not limited to the following:
      • Order forms
      • Invoices
      • Contracts
    5. Respond to all retrieval requests on time and provide accurate information.
    … Read More “How can I defend myself against chargebacks?”

    What is a retrieval request?

    If a cardholder disputes a transaction, their issuing bank asks you to send evidence about the transaction. This is known as a retrieval request. For example, if a cardholder has a transaction on their bank statement that they don’t recognize, they can contact their issuing bank and dispute the transaction.… Read More “What is a retrieval request?”