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Chargebacks

What is a chargeback?

A chargeback is when a customer or issuing bank disputes one of your transactions. For example, if a customer has a transaction on their statement that they don’t recognize, they can contact their bank to dispute the transaction. Read more

The chargeback process

There are up to four stages in the chargeback process, which include the following: Retrieval request First chargeback Second chargeback, also known as pre-arbitration Arbitration Retrieval request A retrieval request is when a cardholder’s bank asks a merchant to send information about a transaction. Read more

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 should I do when I receive a retrieval request?

When you receive a retrieval request, you must reply with evidence about the transaction within 12 calendar days. The evidence you provide should meet the requirements on the retrieval request. Important: If you don’t reply on time or if your response doesn’t meet the requirements, your retrieval request may result in a chargeback. Read more

What happens after I have replied to my retrieval request?

The issuing bank reviews your response and decides if your evidence is sufficient. The evidence is sufficient. The issuing bank then closes the retrieval request. The evidence isn’t sufficient. The issuing bank progresses the retrieval request to a first chargeback and asks your processor to send you a chargeback notification. Read more

How can I avoid chargebacks?

You can avoid chargebacks by using the following best practices: Do: Obtain the cardholder’s signature to confirm they received the merchandise in good condition. Be careful when manually keying an account number for approval to prevent keying errors. Read more

What can a retail merchant do to avoid chargebacks?

In addition to the best practices described in How can I avoid chargebacks?, retail merchants should use the following best practices: Do: Ensure the cardholder’s card is present. Ensure your POS device is in working order and free from dirt and debris. Read more