If you receive a chargeback or retrieval request you should:

  1. Follow the instructions on the 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:
  • Order forms
  • Invoices
  • Contracts
  • Signed acknowledgement of refund cancellation policies
  • Signed credit card authorization for CNP transactions

       5. Respond to all retrieval requested on time to give you the best chance to avert a chargeback.


Important:

The card issuer may reverse the chargeback if the information is sufficient. Chargeback reversals are conditional, as the card issuer may investigate the case further, by processing a second chargeback or pre-arbitration case.


Note:

Do not issue credit to an account when you receive a chargeback as the card issuer applies a conditional credit to the cardholder’s account. Any credit you issue after you have received a chargeback, may not be recoverable. You may be financially responsible for the credit, and the chargeback.


Note:

Face-to-face transactions on cards that contain an EMV chip must be run through a chip card reader, or you will most likely lose any fraud dispute lodged. Banks will not accept any documentation on these kinds of disputes, other than the record showing that the card was run through a chip card reader. The cost of one transaction can be much more than the cost of securing an EMV enabled terminal.  Call us today to see how easy and affordable an EMV terminal ca be.


Evidence of cardholder actions

1. Cardholder’s awareness that they purchased merchandise in “as is” condition, for example:

  • Screen print for e-commerce
  • Signed disclosure


2. Letter from cardholder admitting that they purchased merchandise “as is”
3. Cardholder’s non-compliance with a clearly documented cancellation policy, return policy, or applicable law


Note

Card-not-present transactions, where card data is obtained over the phone or by fax, and then hand-keyed into a terminal can pose special challenges, especially when refund/cancellation policies are involved. Merchants that process these types of transactions should get a signed customer approval that these polices have been communicated and agreed to, along with a credit card authorization in order to defend against chargebacks on these types of transactions.


Evidence of your actions

  • One or more undisputed payments for the same merchandise or service

  • You issued credit to the account to correct an error

  • Multiple fraudulent transactions did not occur, including:

    • Transaction documents

    • A written rebuttal explaining the multiple transactions

    • Pointing out differences between transactions such as:

      • Different merchandise purchased

      • Checkout lanes

      • Times of transactions

      • Two different clerks

  • Services were rendered

  • You attempted to repair or replace goods, or provide replacement services

  • You should also provide a legible copy of the transaction documentation to assist the cardholder in recognizing the transaction.



Additional actions for different merchant types:

As well as the actions described, you can also provide additional information for different transaction types. For more information about each merchant type, go to the following individual pages:

  • Keyed-entry or MOTO merchants

  • E-commerce merchants

  • Retail merchants

  • Recurring billing or service-based merchants