The Chargeback Process and What You Should Do About It

•THE• CHARGEBACK PROCESS AND WHAT YOU SHOULD DO ABOUT IT STEP 1: STEP 2: STEP 3: STEP 4: A CUSTOMER THE THE ISSUING BANK A PROVISIONAL BUYS CARDHOLDER WILL REVIEW THE REFUND WILL SOMETHING. DISPUTES THE REQUEST. BE ISSUED TRANSACTION IF THEY THINK TO THE WITH THEIR THERE IS ENOUGH CARDHOLDER. CREDIT CARD COMPANY OR EVIDENCE OF AN ERROR, THE CARD-ISSUING ISSUING BANK BANK. WILL PROCEED WITH THE CHARGEBACK PROCESS. STEP 5: THE ISSUING BANK WILL CONTACT THE MERCHANT'S BANK, Ш ACCOMPANIED WITH THE REASON FOR THE CHARGEBACK REQUEST. IN GENERAL, THE REASONS FALL INTO FOUR CATEGORIES: CLERICAL TECHNICAL QUALITY FRAUD THIS INCLUDES THINGS LIKE THIS INCLUDES THINGS LIKE THE CUSTOMER CLAIMS THE CUSTOMER CLAIMS EXPIRED AUTHORIZATION, BANK PROCESSING ERROR, CHARGING THE ACCOUNT THE PRODUCTS OR HE OR SHE DID NOT TWICE FOR THE SAME SERVICES RECEIVED WERE AUTHORIZE THE TRANSACTION AND/OR THERE WAS A CASE OF NOT OF THE STANDARD HE TRANSACTION, OVERBILLING, AND FAILURE AND NON-SUFFICIENT FUNDS. OR SHE ANTICIPATED. TO PROVIDE REFUND. IDENTITY THEFT. .... .·· ... .... STEP 6: STEP 7: STEP 8: THE MERCHANT WILL HAVE THE THE OPTION TO SIMPLY THE MERCHANT MERCHANT'S ACCEPT THE CHARGEBACK WILL RESUBMIT THE BANK WILL ISSUE TO THE BANK. OR ADDRESS THE ISSUE. IF THE MERCHANT REVIEW THE REFUND CHOOSES TO FIGHT THE REQUEST AND CHARGEBACK, HE OR SHE NOTIFY THE WILL NEED TO PROVIDE IN CHARGEBACK MERCHANT. WRITING THE NECESSARY DOCUMENTATION. (COPIES OF THE RETURN POLICY, SIGNED RECEIPT FROM DELIVERY, EMAIL COMMUNICATIONS, OR OTHER FORMS OF EVIDENCE). STEP 9: STEP 11: A DECISION IS MADE. CHARGEBACK THE MERCHANT'S BANK WILL REVIEW THE RESUBMITTED INFORMATION. IF THE BANK FINDS IF THERE IS ENOUGH IF THE MERCHANT'S BANK THERE IS NOT ENOUGH EVIDENCE, THE • CUSTOMER'S ACCOUNT IS CHARGED AGAIN, BUT THERE IS STILL A FEELS THE EVIDENCE IS EVIDENCE TO SUFFICIENT, THEY WILL NOTIFY OVERTURN THE CHARGEBACK, THEY WILL PULL MONEY THE CUSTOMER'S BANK. CHARGEBACK FEE PAID FROM THE BY THE MERCHANT. MERCHANT's ACCOUNT WITH AN ACCOMPANYING CHARGEBACK FEE. STEP 10: THE ISSUING BANK CUSTOMER PAYS FOR PRODUCT WILL REVIEW THE REPRESENTED INFORMATION. MERCHANTS COVERS THE COST OF PRODUCT CHARGEBACK MERCHANTS PAYS CHARGEBACK FEE MERCHANTS PAYS CHARGEBACK FEE CONSEQUENCES OF CHARGEBACKS IT COSTS MONEY. YOU CAN BE PENALIZED. IF YOU GET TOO MANY CHARGEBACKS, YOUR ACCOUNT COULD BE FOUND IT AFFECTS YOUR FUTURE. A MERCHANT COULD LOSE THE IT'S CONSIDERED WHEN ASKING MERCHANDISE, THE CUSTOMER'S PAYMENT, A BANK FEE FOR THE CHARGEBACK, A LOSS OF FOR CREDIT INCREASES. IF YOU HAVE TOO MANY CHARGEBACKS, YOU MAY NOT BE APPROVED "RISKY", RAISING CHARGEBACK FEES AND OTHER RATES. SHIPPING COSTS, AND OTHERS. FOR MORE CREDIT. 143 456 7ea0 BANK NAME 123 486 76DO BANK NAME HOW CAN I PREVENT CHARGEBACKS? 3 ENSURE THE PROVIDE THE CVV2 OR CID WHEN GET A BILLING INVOICE PROCESSING TRANSACTIONS. SIGNED ADDRESS INVOICE MATCHES THE WHEN ADDRESS ON POSSIBLE. FILE WITH THE CID cvv2 123 CARD ISSUING BANK. 5 6. TRACK YOUR SHIPMENTS PROVIDE EXCELLENT EDUCATE YOUR AND REQUIRE A SIGNATURE CUSTOMERS OF IF POSSIBLE. CUSTOMER SERVICE. YOUR RETURN POLICY AND CONTACT INFORMATION. THE BIGGEST OF CHARGEBACKS ARE A RESULT OF "FRIENDLY FRAUD", ISSUE: 86% WHERE A CONSUMER PURCHASE SOMETHING AND CLAIMS THAT IT WAS AN UNAUTHORIZED PURCHASE. PROPAY. SOURCES: http://www.propay.com/propay-support/frequently-asked-questions/chargeback-fraud/ http://chargebacks911.com/the-chargeback-process/ A TSYS° Company