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:
- Retrieval request
- First chargeback
- Second chargeback
- 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.
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).
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
- Type of device they used to checkout
- IP address
- Time and date of purchase
Evidence of your actions
- Written correspondence between you and the cardholder, which may include:
- Letters
- Emails
- Photographs
- Faxes
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 retail merchant provide to defend against chargebacks?
In addition to the actions described in What is a chargeback?, you can also provide the following evidence:
- A receipt signed by the cardholder
- Documentation stating that the issuing bank authorized the transaction because of a technical fallback.
What can I do to help prevent chargebacks?
… Read More “What additional evidence can a retail 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:
- Follow the instructions on the chargeback notification.
- Respond by the due date listed on the notification.
- Provide a written reply addressing all of the cardholder’s concerns.
- Provide copies of all transaction documents, including, but not limited to the following:
- Order forms
- Invoices
- Contracts
- Respond to all retrieval requests on time and provide accurate information.
What is a fallback transaction?
A fallback transaction happens when the cardholder inserts a chip card into an EMV compliant device but there is a fault with the chip. The device cannot read the chip but allows the cardholder to complete the transaction using the magnetic stripe on the card.… Read More “What is a fallback transaction?”
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?”