#chargeback services

How to Choose the Best Chargeback Services Provider: A Comprehensive Guide

Issuing bank received the complaint from the customer that goods or services he purchased are defective, damaged or not fit the expectation of the customer. Customer claims that policies explained verbally by the merchant during purchase were different and that what he received was different than expected.

Some Causes

Wrong merchandise/goods sent to the cardholder.

During shipment, goods got damaged.

The goods or services were described inaccurately.

The services purchased by the cardholder weren’t canceled on time.

The services did not perform as it was described.

The returned merchandise was not accepted by the merchant.

The returned merchandise accepted but merchant did not issue a credit to the cardholder.

Counterfeit consumer goods.

Necessary Evidence

If goods were returned or services were canceled, the merchant must provide the bank with all the information or evidence of the refund.

If the merchant hasn’t received the returned goods or the cardholder has not canceled the service, inform the bank. The cardholder must make a valid effort to return merchandise or cancel the service. The merchant must ensure that the incoming shipments are recorded to later verify.

If the cardholder’s complaint is legal and the merchant has received the goods, but have not refunded the amount, he must accept the chargeback. Do not process a credit until the chargeback has performed this function.

If the goods were accurate and as described, provide the merchant bank with specific information and invoices to deny the cardholder’s claims.

If merchandise was damaged and it was returned, provide evidence that it was repaired or replaced.

How to do Prevention?

Make sure that the policies regarding the merchandise or services are explained clearly, these should be delivered in the manner they are supposed to be delivered or as mentioned in terms and policies.

Make sure that orders are placed correctly and arrived perfectly. It must be reviewed and checked regularly during the delivery process.

The staff must be trained from time to time on how to accurately file an order.

The buyers must be notified of every cancellation request, credit or refund in order to reduce the possibilities of chargebacks.

Related Example-

Description

Mastercard has been issued a global liability shift program for ecommerce transactions. A chargeback is filed for this reason when an acquirer bank processed a transaction for a credit card accepted and later recognized in the list of Mastercard violation.

Most Common Causes

The merchant:

The transaction falls under the Global Security Bulletin of Mastercard.

The acquirer name, acquirer ID, merchant name and its location are lister in the Global Security Bulletin under Global Merchant Audit Program (GMAP).

The issue is not resolved within time frame specified in the procedure manual and in security rules.

The issuer did not report the transaction under SAFE within time frame.

The transaction is not processed within the specified period in merchant agreement.

Evidence Required

If the first chargeback was correct and the acquirer bank failed to change the dispute properly, the issuer may continue the chargeback with the same reason code originally processed.

If the acquirer bank lost data file requested submit the form found in the back of the procedure manual and security rules.

If the situation requires any other reason, the issuer must process the arbitration chargeback using the proper reason code.

Prevention

Process all the transactions at hybrid terminals.

If found counterfeit fraud reports it to SAFE product user guide of Mastercard.

Keep a record in a chip transaction and authorization message request should be approved by the issuer.

The time frame for these chargebacks is 120 calendar days from the Global Security Bulletin publication date.

Description

Mastercard has been issued a global liability shift program for ecommerce transactions. A chargeback is filed for this reason when an acquirer bank processed a transaction for a credit card accepted and later recognized in the list of Mastercard violation.

Most Common Causes

The merchant:

The transaction falls under the Global Security Bulletin of Mastercard.

The acquirer name, acquirer ID, merchant name and its location are listed in the Global Security Bulletin under Global Merchant Audit Program (GMAP).

The issue is not resolved within the time frame specified in the procedure manual and in security rules.

The issuer did not report the transaction under SAFE within the time frame.

The transaction is not processed within the specified period in merchant agreement.

Evidence Required

If the first chargeback was correct and the acquirer bank failed to change the dispute properly, the issuer may continue the chargeback with the same reason code originally processed.

If the acquirer bank lost data file requested submit the form found in the back of the procedure manual and security rules.

If the situation requires any other reason, the issuer must process the arbitration chargeback using the proper reason code.

Prevention

Process all the transactions at hybrid terminals.

If found counterfeit fraud reports it to SAFE product user guide of Mastercard.

Keep a record in a chip transaction and authorization message request should be approved by the issuer.

The time frame for these chargebacks is 120 calendar days from the Global Security Bulletin publication date.

Description

Mastercard has been issued a global liability shift program for ecommerce transactions. A chargeback is filed for this reason when an acquirer bank processed a transaction for a credit card accepted and later recognized in the list of Mastercard violation.

Most Common Causes

The merchant:

The transaction falls under the Global Security Bulletin of Mastercard.

The acquirer name, acquirer ID, merchant name and its location are listed in the Global Security Bulletin under Global Merchant Audit Program (GMAP).

The issue is not resolved within the time frame specified in the procedure manual and in security rules.

The issuer did not report the transaction under SAFE within the time frame.

The transaction is not processed within the specified period in merchant agreement.

Evidence Required

If the first chargeback was correct and the acquirer bank failed to change the dispute properly, the issuer may continue the chargeback with the same reason code originally processed.

If the acquirer bank lost data file requested submit the form found in the back of the procedure manual and security rules.

If the situation requires any other reason, the issuer must process the arbitration chargeback using the proper reason code.

Prevention

Process all the transactions at hybrid terminals.

If found counterfeit fraud reports it to SAFE product user guide of Mastercard.

Keep a record in a chip transaction and authorization message request should be approved by the issuer.

The time frame for these chargebacks is 120 calendar days from the Global Security Bulletin publication date.

Description

Mastercard has been issued a global liability shift program for ecommerce transactions. A chargeback is filed for this reason when an acquirer bank processed a transaction for a credit card accepted and later recognized in the list of Mastercard violation.

Most Common Causes

The merchant:

The transaction falls under the Global Security Bulletin of Mastercard.

The acquirer name, acquirer ID, merchant name and its location are listed in the Global Security Bulletin under Global Merchant Audit Program (GMAP).

The issue is not resolved within the time frame specified in the procedure manual and in security rules.

The issuer did not report the transaction under SAFE within the time frame.

The transaction is not processed within the specified period in merchant agreement.

Evidence Required

If the first chargeback was correct and the acquirer bank failed to change the dispute properly, the issuer may continue the chargeback with the same reason code originally processed.

If the acquirer bank lost data file requested submit the form found in the back of the procedure manual and security rules.

If the situation requires any other reason, the issuer must process the arbitration chargeback using the proper reason code.

Prevention

Process all the transactions at hybrid terminals.

If found counterfeit fraud reports it to SAFE product user guide of Mastercard.

Keep a record in a chip transaction and authorization message request should be approved by the issuer.

The time frame for these chargebacks is 120 calendar days from the Global Security Bulletin publication date.

Merchant was unable to verify the authorization code of the transaction at the time of purchase. A card-not-present transaction occurs when cardholder files a complaint that he/she neither participated nor authorized a particular charge. A card-not-present transaction occurs on a fictitious account number on which owner’s authorization was not obtained. Telephone sales, mail-order, Internet/online sales, monthly subscriptions, recurring and prepayment transactions are examples of card-not-present transactions. Mostly this situation occurs when someone fraudulently uses someone else’s credit card and processes card-not-present transaction without the consent or permission of the cardholder. Sometimes, cardholder does not recognize a card-not-present transaction on his statement because of the invisible, unclear or confusing merchant or product name.

Most Common Causes

POS device was not authorized for strip-read, online and face-to-face transactions, but only card-read or key-recorded transactions.

The transaction was not approved.

The card provided a service code of X2X (Positive Online Authorization-Only), but the transaction was not approved.

The transaction amount passed the limit from the floor limit that was installed by MasterCard at the time of purchase and was not approved.

The authorization request was denied or the transaction was made by an expired card.

If not authorized by Technical fallback and CVM fallback transactions.

The merchant processed a fictitious account number on which card owner’s authorization was not obtained.

The merchant processed a transaction card owner did not participate in.

The transaction is processed on the invalid card using an account number.

A family member ordered from the primary cardholder’s account without his permission.

It is also caused by the owner of the card not able to recognize purchase on the billing statement.

Evidence Required

The merchant should provide the document that business did not need to authorization.

The merchant may present the document that the cardholder obtained authorization for the transaction amount.

Providing the amount that was authorized, authorization approval code, and the date of the authorization the merchant should document the incomplete authorization

The transaction was below the issued floor limit and there was communicate failure to buyer or failure to POS device at the time of buying, the merchant should present document.

Prevention