What you should do – best practices…

Chargebacks can be very difficult to resolve especially if you do not have the knowledge or time to respond to them. Below please find the advice on what to do when you receive a chargeback notification from your processor.

A chargeback is a transaction disputed by the cardholder or card issuer. Businesses must be able to provide proof that the disputed transaction is valid and in accordance with Visa/MasterCard regulations or risk having their account debited for the disputed amount.

If you receive a chargeback, we will debit your DDA for the amount of the transaction, including any applicable currency fluctuations, and send you a chargeback notice. This notice includes the details of the transaction as well as specific instructions on how to respond. A business receiving a chargeback notice must provide proof that the transaction is valid and satisfactory to the rules/regulations of Visa/MasterCard to get money back. Receiving a chargeback notice can also mean extra processing time and cost to you, a narrower profit margin, and possibly a loss of revenue. That’s why it’s important to carefully track and manage the chargebacks that you receive, avoid future chargebacks, and know your representment rights.

After being notified by a cardholder about a disputed transaction, the cardholder’s issuing bank may order a copy of that particular sales draft through us to determine what occurred at the point of sale. This is called a copy request or retrieval. A retrieval request most often occurs when a cardholder loses their copy of the transaction receipt, does not remember the transaction or questions the transaction for any reason.

To avoid chargebacks, act promptly if contacted directly by the cardholder to resolve a dispute.
If the cardholder does not contact you, respond to inquiries with as much information as possible about the sales transaction in question.
Limit one authorization for each settled transaction.
Obtain an authorization code. Refuse to process a transaction when you receive a declined code during authorization.
To verify cardholder account status, perform a zero value account verification transaction instead of $1.00 authorization transaction.
Include a description of the goods or services on the transaction receipt.
Deliver merchandise or services before charging the card.
Include the CVV2/CVC2 and AVS codes for card not present transactions, if applicable.
Submit transaction receipts on the same day the transactions are authorized.
Make sure an imprint appears on a manual transaction receipt or that the relevant transaction information appears on the terminal-generated transaction receipt.
Do not accept expired cards or cards having effective dates after the date of the transaction.
Void authorizations within your outstanding batches if they are not going to be settled.
Call for Voice Authorization if you are still suspicious of the cardholder, card, or transaction after receiving an approval code.

 

Good luck!

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