Chargeback
is a mechanism by which a cardholder claims the merchant and calls
the credit card issuer to dispute a transaction . Cardholder may have
various reasons to raise a dispute against the transaction like:
goods and services never supplied to the customer, defective
merchandise received by customer, refund not processed to customer,
merchant used expired card and so on.
The
Merchant needs to give explanation about the amount debited from
cardholder account.
What
is Chargeback Representment?
Chargeback
Representment is a term for providing Packet of Evidence as per
Reason Codes to acquiring bank or the Credit Card Company that shows
that the transaction was made with full knowledge of the cardholder
and also shows that cardholder agreed with all the Terms and
Conditions which was displayed before buying the Product or Services.
Representment also includes the
information if there is any Refund/Partial Refund issued to
Cardholder.
When
a Customer or Issuing Bank issues a chargeback, merchant gets
information from acquiring bank with a deadline to either represent
or accept. If a merchant is ready to represent, he would have to
provide all the information regarding the transaction in a single
packet. Acquiring Bank will then send evidence to the Issuing Bank,
where a team of expertise will examine all the evidences and when the
team gives a verdict in the merchant’s favor, the chargeback will
be reversed and if the team is not satisfied with the submitted
evidence, the particular amount is then deducted from the merchant’s
account.
Spot
the Reason Code and collect evidence according to it. Collect all the
evidence which was provided to customer at the time of sale and
arrange in a single packet. Always highlight Important key proofs
like: order id, tracking number, customer’s email id, IP address,
order confirmation etc. Provide proof of Refund if Customer refunded
before disputing the Chargeback. Provide all evidence which was
signed by Customer before buying the Services.
Issues
that stop you from a perfect Chargeback Representment:
Important
issue is time frame; Merchant should send all evidence before the
deadline. Provide all evidence according to the reason code, there is
no chance for mistake. Show all the agreement(s) signed by customer
in a proper manner. Provide refund receipt as a Proof of Refund
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