Really Are You Managing Chargebacks Timely?

Chargebacks are unwanted guests nobody wants them. Same as with chargebacks they can be treated timely and cured well with proper guidance and precautions. 

A chargeback can only be destroyed by proper file work. It requires proper attention initially and then proper paperwork will make a strong base in the future.

Merchants are vulnerable if they do not have clear documentation available to resolve the chargebacks and submit the responses.

We have made it to a few points that could help you in getting a successful chargeback response:

Make Proper Evidence For It

Every chargeback will demand different evidence and data that is tied to the reason code with the dispute.

•Display the cardholder’s satisfaction with the product or service

•The product was being used, despite the dispute claiming it never arrived from shipping.

Keep the Details:

You should support your case with phone logs, email correspondences, and any additional information that validates the cardholder’s identity and shows that he was aware of the transaction.

 Keeping minute details comes in very useful when making a sale. It may be irrelevant at the time of trade but when the chargeback comes the small detail is probably the best asset you could have.

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Visa Chargeback Reason Code 81 - Fraudulent Transaction – Card Present Environment

The bank received an order receipt where an important information is missing, which indicates a fraud. A situation where either order receipt does not contain cardholder’s signature or clear print of the face of the credit card. Situation where cardholder neither permits to charge nor participates in the transaction.

Most Common Causes

• The merchant did not swipe the card by a magnetic-stripe reader neither inserted the card into a chip terminal.
• The merchant did not take a manual print of the account information on face of the card on order receipt for a key-entered transaction.
• The merchant processed the transaction without the approval of both PIN and/or cardholder’s signature.
• Completed a card-present transaction without obtaining the cardholder’s name and signature on the order receipt.

Evidence Required

• For a card present transaction and one or more key entered a transaction,provide valid imprint and cardholder’s signature or PIN. Provide evidence that all transactions happened during the same stay, period or trip.
• If the account information was taken from the card’s magnetic strip,, the merchant should send authorization record to the issuer as proof that the card’s magnetic strip was read. Also, provide a copy of the order receipt with cardholder’s signature.
• If the account number did not match the magnetic strip or obtained manually, accept the chargeback.
• If the account number was manually printed on the order receipt, provide a copy of the it with cardholder’s signature in order to reverse the chargeback.
• If the cardholder’s signature is not there on order receipt for a card-present transaction, accept the chargeback.

Prevention:

• The transaction should meet the criteria for Card Verification Value 2 (CVV2) as an Imprint.
• The field sales staff should have manual imprinters or electronic terminals that can read the card’s magnetic strip, if merchandise is sent or services delivered to the customer’s place.
• If the merchant is receiving a huge volume of chargebacks of this Reason Code, there is a potential of ongoing fraud. Merchant must checkpoint of sale terminals and the staff’s involvement in such activities.
• The merchant should always keep records of the credit card account information on the order receipt by swiping the card through terminal to get the account information from the magnetic strip.
• If the merchant uses a manual printer, make sure the information on the face of the credit card is matched with other transaction information to prove the card was present at the time of order. Get more information visit website – www.chargebackexpertz.com

Visa Chargeback RC - 79 Non-receipt of Sales Draft

The cardholder may ask for specific information regarding the transaction, and further cardholder’s bank goes to the merchant and requests information with an explanation. If the merchant does not respond with a legible copy of the transaction and its authorization proof, then cardholder may file the chargeback.

Most Common Causes

• The original receipt is not readable because of light print.
• Copy of the order receipt are too small to read or unclear.
• If cardholder did not receive credit when he requested for the same.
• Merchant did not respond to the issuer on Retrieval Request or Sales Draft.

Evidence Required

• The merchant should provide a printout of the credit to the merchant bank. If issued money order or a check; submit a copy of front and back of the canceled receipt.
• Ensure that the refund if partially issued then why the full refund was not issued.
• Accept the chargeback, if credit was not processed.

Prevention

• You should keep a record of all retrieval requests.
• Recheck your record for confirmation which you are sending for chargeback requests.
• Chargeback with this reason code doesn’t have reversal rights even if the merchant does not react within the time frame on retrieval request.
• The merchant should be quick in responding retrieval requests as they occur.

Common Example

Linda was having issues with her laptop for which she asked technical support to assist her with her system. The company successfully fixed the error and Linda’s laptop was alive again. A bill was generated and Linda was asked to pay a certain amount. She requested the merchant to give her a detailed bill with the pricing of each issue that they fixed. The merchant refused to give details. Linda thought that she was overcharged and after not being able to receive full information of the bill from the merchant, she decides to dispute the charge under the Reason Code 79: Non Receipt of Sale Draft

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Visa Chargeback Reason Code 77- Non-Matching Account Number

An account number on which a transaction is processed by the merchant is not recognized or matched with any account number on the card issuer master database. Such cases normally arise when the key-entered accounts, account numbers through telephone, emails and online are recorded incorrectly.

Most Common Causes

Incorrect account information recorded in a mail-order, telephone order and/or any other online purchase.
Incorrect account information entered manually while processing a transaction.

Evidence Required

• If Information from the Documents can be Verified:If the merchant can transfer documents such as a print of the credit card which identifies that the credit card charged has the correct card number.
• If Account Number Matches:If the account number on the order receipt matches the account number on the chargeback, and the transaction received an authorization approval, give the charge back to the acquiring bank and request the bank to include the authorization log for this transaction when giving back to the card issuer.
• If Account Number Doesn’t Match: If the account number on the order receipt does not match the number on the chargeback, accept the chargeback. In this situation, the merchant can process and submit a new transaction with the correct account number within 30 days of the original transaction and must make sure to request an approval code.
• If the Transaction Wasn’t Authorized:If the account number on the order receipt does not match the account number on the chargeback, and the transaction was not authorized by a mail-order or telephone order, the merchant must accept the chargeback.

Prevention

• If an electronic machine or the terminal cannot recognize/read the card’s magnetic strip, request authorization by key-entering the account number. Be sure the key-entered account number matches the account number on the card. Use a manual printer to print the information from the face of the card at the order receipt that is signed by the cardholder.
• Suppose the terminal is not working, call the center for authorization approval and mention approval code on the order receipt in the space provided. Use a manual printer to print the information from the face of the card at the order receipt that is signed by the cardholder.
• If the merchant has done payments by phone then he must confirm or verify the account number again to the customer to make sure that the account number is recorded correctly.

Explanation of Chargeback Reason Code "Incorrect Transaction Code"

This chargeback occurs when a cardholder claims a debit on his credit card for a transaction that was supposed to be credited to his account. Or transaction amount on the statement is different than the sales receipt. This chargeback may be reversed if the merchant can provide an affidavit verifying that the amount processed is similar to the amount listed on the sales draft or confirmation/proof that a credit was issued.


Most Common Causes

• The merchant issued a credit, but the transaction appears as a sale.
• The transaction currency is different than the currency processed through Visa.
• Cardholder claims that the goods and services failed to offer them a choice of pay in the merchant’s local currency.

Evidence Required

• The Correct Transaction Code Was Posted: Provide your acquirer with authentication of the transaction, showing that it was posted correctly as a credit to the cardholder’s account and a debit to your account.
• The Credit card Was Posted as a Debit card: Chargeback was accepted. In this case, the chargeback amount will be duplicating the actual transaction.
• The Cardholder must use Correct Transaction Codes: When buyer’s issuing a credit voucher, the merchant must assure to use credit transaction code on point-of-sale terminal.

Prevention

• The correct transaction codes used for the refund, when issuing a refund, make sure to use the credit transaction code on your payment processing device. Make sure your staff is properly learned on how to do this.
• When issuing a credit voucher, be sure to use the credit transaction code on your POS terminal.
• Give the cardholder an option of making the purchase in the local currency.
• Deposit receipts in the country where the purchase was made. A Deposit receipt facilitates buying shares in other companies.
• Inform cardholders of the use of cash conversion and applicable fees.

Common Examples

Linda wanted to buy few accessories from Turkey, so she decides to look for few online stores for the same. Finally, she makes a purchase in dollar amount, however, when she checks her account she finds out that the amount was deducted in Turkish Lira that also costed her the exchange amount. She gets confused as the merchant presented the products in dollar amount on the website and while processing it changes to another currency. Being disappointed she disputes the charge under the Reason Code 76: Incorrect Transaction Code. If you're searching for more information chargeback reason code. Just go to site – VISA Chargeback Reason Codes

A Cardholder can Challenge Transaction Dispute - If Decision is Ruled in Favor of Merchant

This dispute of transaction and asking the money back for any given reason is called Chargeback. For chargeback, if a customer feels that the merchant is cheating for any reason, customer directly contacts to the banks for the refund of the transaction. Though, in many cases, the bank places a conference call between merchant, customer and the cardholder’s bank to see if merchant and customer can resolve the problem.

If the customer is not satisfied with the merchant’s conversation, they ask finally ask for the money back. For this reason, the cardholder’s bank issues the credit for the cardholder’s account. Asks merchant account bank to issue a debit for the merchant account the cardholder’s bank also issues the requirement of document for the merchant, if the merchant likes to fight the chargeback and can prove that customer’s reason for refund is not valid.

Merchant have limited time to respond to fight chargeback and to provide legal documented proofs to the cardholder’s bank. If the proofs examined as valid documents, the credited amount to the customers is take back again and is given to the merchant again. As the decision about chargeback is ruled in favor of merchant, the customer/cardholder has the right to file the second chargeback on the transaction; this is called the “Pre-Arbitration” in VISA’s chargeback process and “Second Chargeback” in MasterCard chargeback process. For this, the merchant have to repeat the same process for fight again for the transaction to be proved as valid.

To fight chargeback, merchant’s need to be active for representment every time the bank issues the request of documents. Delay in representment many times results in loss of charges of the product from the merchant account. This option of repetitive filing of chargeback is the drawback of this internet transaction method. Many people try to take advantage of this clause of repetitive dispute of transaction. As fraudster develop new ways of cheating the merchant, and this repetitation of filing chargeback is one of them.

Chargeback is one of the crucial thing to be handled in the ecommerce business as it is observed that the most of part of the profit is lost if a merchant fails to fight chargeback with an effective representment of the documents to prove the validity of the transaction. 

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How to Manage Chargebacks Resulting from RC-71 Declined Authorizations

The card issuer received a transaction for which authorization was declined. It happens when efforts are made to depolarize or override a declined authorization by coercively posting several authorization efforts or an alternative authorization method.

Most Common Causes

• Alternative authorization method. If merchant swiped the card at a Point of Sell out terminal, and the authorization was cancelled, but the merchant then submitted the transaction by key entering or called in a voice authorization.
• If one or more authorization attempts were made, the merchant re-swiped the card multiple times until the transaction was authorized even after an initial authorization decline. If the card issuer’s authorization system times out or becomes unavailable, and the transaction is forwarded to Visa, in this situation, authorization gets lost.
• Card forcibly attempt. If the merchant forcibly attempts the transaction without requesting an authorization after a decline response.

Evidence Required

• If your first authorization attempt was declined, accept the chargebacks. One or more attempts for authorization may not be accepted as valid evidence to show the approval.
• Notify your acquirer bank of the transaction date & amount, if you got an authorization approval code.
• Get an authorization before completing transactions. When the card is swiped and the dollar amount is entered then the POS terminal automatically sends an authorization request, generates an acknowledgment and prints the receipt if transaction is approved otherwise the transaction is declined.
• All sales staff has to know about the installation authorization policy. They should immediately stop the transaction and ask the customer for another Visa card or other form of payment if any transaction shows cancelled or declined.

Prevention

• Before completing transactions get an authorization. When the card is swiped and the dollar amount is entered, point of sale (POS) terminal automatically sends an authorization request. If your terminal was able to print the receipt, that means the acknowledgment was received and the transaction was approved. But if the receipt wasn’t printed that means the transaction was cancelled or declined.
• If the terminal isn’t working or unable to get an electronic authorization because the magnetic stripe cannot be read, then an alternative method should be applied. Call the bank and as for authorization. If the transaction is approved, note down the approval code on the printed receipt in the appropriate space and ask the customer to sign it.
• If transaction is cancelled, instantly stop the transaction, and ask the customer for another Visa card or other form of payment.

Common Examples

Linda ordered a laptop and got transaction authorization code. She later changes her mind and cancels her order for which she didn’t receive the code. Hence, she disputes the merchant under the Reason Code 71: Declined Authorization.

Chargeback Reason Code 70 - No Verification/Exception File

The buyer’s bank received a transaction that was below the merchant floor limit and the bank account number was listed on Visa’s exclusion file, maybe because the merchant either did not verify the exclusion file or collected a privative response. The most common cause is when goods and services process a transaction below its floor limit without making sure that the exclusion file had been verified. The exclusion file is a list of counterfeit, fraudulent, lost, stolen, or their third-person processors, or otherwise invalid bank account numbers kept by particular good and services. The exclusion file should be verified as part of the approval process, especially for transactions that are below merchant’s floor limit. The no verification/exclusion file should automatically be verified when a card is swiped in ATM or other machines.

Most Common Causes

• If the merchant is notified of the chargeback and he did check the exclusion file, inform the acquirer of the date that the exclusion file was verified. The merchant does not have to send a copy of the acknowledgment, as the acquirer should be able to verify its transaction log.
• If the merchant did not check the exclusion file, accept the chargeback.
• If the merchant did verify the exclusion file, and the exception file was verified. Inform the payment processor who should be able to verify the transaction log to verify the fraud.

Evidence Required

• This chargeback may be reversed by supplying information such as the method and date when the authorization code was obtained or evidence that a credit was issued.
• This chargeback occurs when it cannot be checked that a valid code was obtained for a transaction at the time of the actual sale.
• This chargeback can be avoided by receiving an authorization code for each and every transaction processed.
• If applicable, prove that the transaction was chip-initiated and authorized offline.

Prevention

• Always check the exclusion file before completing transactions below floor limit. Most point of sell-out terminals automatically verifies the exclusion file when the card is swiped and the amount is entered.
• Verify with the acquirer to make sure their transaction-processing system automatically verifies the exclusion file for under-floor-limit transactions and tell the sales staff that if they are ever in suspicion about whether an authorization is compulsory, request an approval.
• Exclusion File transactions for the floor limit should be zero. All transactions always require allowance, regardless of the amount.

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High-Risk Credit Card Processing for Bars- Taverns-Lounge & Disco

In most mаjоr сitiеѕ, сuѕtоmеrѕ already hаvе ѕо mаnу nightlifе vеnuеѕ to сhооѕе from thаt it саn bе difficult fоr nеw bаrѕ and nightclubs tо brеаk onto thе ѕсеnе and аttrасt thе highest quality crowds. The right bаr management software can hеlр owners and ореrаtоrѕ inсrеаѕе their profit mаrginѕ аnd better undеrѕtаnd bоth thеir buѕinеѕѕеѕ and thеir customers. More imроrtаntlу, hоwеvеr, thе right POS ѕуѕtеmѕ fоr bars can аlѕо еnаblе your staff tо рrоvidе tор-nоtсh ѕеrviсе thаt dеlightѕ уоur guests аnd еnѕurеѕ that уоur buѕinеѕѕ аlwауѕ rеmаinѕ ahead оf thе сurvе.

Thе Benefits Of Using POS Sуѕtеmѕ Fоr Bаrѕ

Hаvе уоu соnѕidеrеd uѕing a POS ѕуѕtеm in уоur bаr? Bесаuѕе оf thе typically fаѕt-расеd еnvirоnmеnt, POS ѕуѕtеmѕ fоr bars offer mаnу bеnеfitѕ. With a POS register, уоur bаr саn ѕimрlifу thе оrdеring process and еvеn еntеr the rеаlm of tаblеѕidе оrdеring. Yоu саn also keep bеttеr track of уоur invеntоrу, hеlрing уоu ensure thе ѕесuritу of your bаr. Furthermore, POS ѕуѕtеmѕ аrе uѕеful in kеерing track оf рriсеѕ and other important infоrmаtiоn. Rеаd оn tо learn mоrе аbоut the imроrtаnt bеnеfitѕ of POS systems fоr bаrѕ.

Faster & Easier Trаnѕасtiоnѕ

Firѕt, POS ѕуѕtеmѕ for bars аrе great fоr ѕtrеаmlining your transactions. Your ѕуѕtеm will bе able tо ԛuiсklу calculate tax, whiсh аllоwѕ оrdеrѕ to bе processed mоrе ԛuiсklу. Yоur еmрlоуееѕ will аlѕо hаvе еаѕу access tо thе еntirе menu аѕ well аѕ individuаl bar tаbѕ – аnоthеr wау to inсrеаѕе еffiсiеnсу. Ovеrаll, hаving a POS ѕуѕtеm in your bar will make everything move faster, whiсh iѕ important fоr аn аlrеаdу fast-paced environment.

Invеntоrу Mаnаgеmеnt

Anоthеr mаjоr benefit tо uѕing a POS rеgiѕtеr in your bar iѕ thе fact thаt уоu will be able tо much mоrе еаѕilу mаnаgе аnd trасk your invеntоrу. Nоt оnlу саn thе POS system trасk alcohol ѕоld in саnѕ and bоttlеѕ, but уоu can аlѕо inрut rесiреѕ to kеер track of thе ingrеdiеntѕ for mixed drinks. Additiоnаllу, уоur еmрlоуееѕ can rесоrd whаt ѕресifiс brаnd оf liԛuоr wаѕ used tо make еасh drink, tracking your invеntоrу dоwn to thе bottle.

Hоlding Emрlоуееѕ Aссоuntаblе

A POS ѕуѕtеm makes уоur bar muсh more secure bесаuѕе it hоldѕ еmрlоуееѕ ассоuntаblе. With inventory tracking, уоu саn keep tabs оn whеthеr оr not your еmрlоуееѕ аrе оvеr-роuring оr giving аwау frее drinkѕ. Bесаuѕе еасh individuаl employee will hаvе hiѕ оr hеr оwn login соdе, уоu саn also еаѕilу track which еmрlоуееѕ are the ones саuѕing you tо соmе uр short.

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