Let The Merchant’s Win The Justice Game This Time.

Justice should be served this time. Yes!!, obviously merchant fails to win the chargebacks at times, he is left with no support and is left only with the losses in their pocket.

Chargeback Expertz will rescue from the tough fights with the unexpected friendly frauds.

Happily, there are a few security steps through which merchant can save himself from Friendly Frauds or Chargebacks.

1.Play Smartly:

As its pretty much known to every merchant that chargebacks lead to huge loss of money from the merchant’s pocket. So, why to afford that loss, better to give the customer a refund. They will happily keep mum. So, the easiest way is to refund the amount in their pocket.

2. React to Chargeback Within a Pinch of the second:

Make a note, not all customers will ask you for the money directly. So, make a thumb rule. The moment a chargeback enters your system, act immediately and inform them card-issuing bank, keeping the reason behind that.

Reason codes are applied up to that some of them are stated below:

• Clerical: This slot considers the duplicate billing, incorrect amounts or refunds that never arrived.
• Quality: considering the damage SKU’S, Defective or not delivered.
• Fraud: falls the unauthorized purchased with the compromised card.

3. Keep paperwork strong:

You need to have a strong base to fight against the Chargebacks. The merchant should not trust anyone in this case, he/she should keep, invoices, emails, order histories, phone records, IP addresses, timestamps, order histories, ledgers, Receipts

These are few basic tips in which a merchant should make a routine of it.

Need to know about WHAT ARE CHARGEBACKS? and how to deal with that. Chargeback Expertz inviting you with open hands call us at +1 855-465-4723 or mail us at app@chargebackexpertz.com.

MasterCard Chargeback Reason Code 4849 - Questionable Merchant Activity

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.
• Time frame for these chargebacks is 120 calendar days from the Global Security Bulletin publication date.
• If you’re looking any kind of information Chargeback Reason Code. You’re in the right place. Get more information visit website – Chargeback Reason Code

MasterCard Chargeback Reason Code - Account Number Not on File

When the charged credit card number doesn’t match to the actual card number used by the buyer bank. If the merchant provides documentation such as the print of the credit card showing accurate credit card number, magnetic stripe reading evidence and authorization or proof of credit issued, the chargeback may be reversed. Carefully recording the card number, properly entering key or swiping the card through the terminal can reduce chargebacks.

Most Common Causes

• The transaction was lesser than the applicable limit and authorized offline by the chip. The Cardholder Verification Method (CVM) provides pin signature or doesn’t flash anything if recognized by the card parameters.
• As revealed by Investigation, if appropriate account number was not entered on Electronic Warning Bulletin as prior to the payment to the merchant.
• If transaction recognized and authorized as a non-face-to-face sale and primary presentment was submitted using the correct account number.
• If transaction processed using the retired account number and later received an authorization.

Evidence Required

• Copy of printed Transaction Information Document.
• The merchant bank must provide adequate documentation to verify the presence of the card for the transaction that occurred at the point of Interaction (POI) terminal, which was not authorized at the point.
• If payment was made for an emergency, verify that the transaction was authorized, print authorization screen.

Prevention

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

Common Examples

Linda checks her account once in a while. She does one day to find out a large amount of charge on her account that she doesn’t recognize at all. She calls the merchant through the descriptor and explains the situation. The merchant checks her information to find out that her account was mistakenly charged due to manual error and that she isn’t the person who bought services from them. Linda, therefore, disputes the charge under the Reason Code 4812: Account Number not on File

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

Incorrect Transaction Amount or Account Number or Invalid Adjustment - RC -80

The buyer’s bank found incorrect transaction amount or account number mismatched with the posted information with them and the information on the order receipt. The transaction was processed with the incorrect account number, incorrect transaction amount and/or had an error while calculating transaction amount without cardholder’s permission or the merchant altered amount after the order was processed without notifying to the cardholder.

Most Common Causes

If the merchant:

• Entered wrong account number.
• Entered wrong transaction amount for that particular transaction.
• Altered the amount after getting the signature from the customer.
• Made a mistake while calculating the amount.
• Exchanged the amount after completing the transaction without taking permission from the cardholder.
• Increased the transaction amount without getting any consent from the cardholder.

Evidence Required

• Provide documents to the acquirer bank describing the product, the transaction amount and the account number on the order receipt are same as acquired information.
• Accept the chargeback, if account number or transaction amount is different from the order receipt and the information posted.
• If disputed chargeback for the incorrect transaction amount, the merchant should process a new transaction within 30 days from the original date, however, if chargeback already has performed its function never issue a refund for that particular transaction.
• No action needed if the customer dispute chargeback for the incorrect amount.

Prevention

• If the business accepts cards, swipe it or manually enter the account number, however, make sure that the account information is used from the face of the card on the order receipt.
• Ensure to use a standard printer to print the order receipt.
• If the cardholder has signed an order receipt, the merchant should not exchange or alter it.
• If chargeback was imposed on an incorrect amount, the merchant must try to communicate with cardholder to adjust the order receipt to show up the correct amount.
• Compare the key-entered to make sure that the transaction information typed is accurate.

Common Example

Linda went grocery shopping and swiped her card to make the purchase. She didn’t realize and hit the option “yes” to the question if the amount was correct. Later she tallies her bill and cross-checks the amount to find out that ten more dollars have been added to the bill. She, therefore, goes ahead and disputes the charge with the help of her bank under the Reason Code 80: Incorrect Transaction Amount or Account Number or Invalid Adjustment.

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

Get more information visit website – Chargeback Expertz

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

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.

Delivery Confirmation and Chargebacks Prevention Strategy

Delivery Confirmation

There are multiple methods to ensure that the product reached on the address provided by the customer. There are methods that provide the merchant with detailed information about the delivery (when, where and how). This type of information is quite relevant from the perspective of chargebacks but unfortunately is not used by all the merchants.

Let us discuss a few methods; how they vary from one another and which ones severely affect the chargeback management.

1. Confirmation of the Delivery: This is a most basic method used by merchants, which facilitates the merchant to know the status of delivery but does not assure that the package was handed over to the customer or was just dropped at the door. This method comes with certain disadvantages like:

• Doesn’t guarantee that the product is delivered to the right person, who ordered the product and paid for it.
• Does not prohibit re-routing of the package.
• Does not verify delivery address.

2. Tracking of the Delivery: Some of the shipping companies use tracking techniques via which a package can be tracked by the customer as well as the merchant with the use of a tracking number provided by the shipment companies. Especially, if the package is scanned at the shipping locale or in the post office, the shipment number goes in the system and can be tracked. Pros and cons of this system are:

• Assurance of successful delivery without guarantee of the package being handed over to correct person.
• With the use of tracking number, the merchant can track the progress of delivery.
• Tracking number can help the merchant in identifying the problem.
• The Customer can track the location of the package.
• Track of delivery date (when the package will arrive)
• Helps in reducing chargebacks by providing more credible evidence.

3. Signature Confirmation: In this method, actual signature of the receiver is required at the time of delivery. This signature can be physical (on paper) or electronic. This method helps the merchant to fight against friendly frauds. If due to any reason, delivery was not successful, the customer will be notified and asked to collect the package from the carrier location/office.
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What is Payment Processor and How to Avoid Chargebacks?

Your payment processor can help avoid chargebacks using tools such as verified by Visa, CVV, and AVS for preventing frauds. In addition to these there are measures they consider to reduce number of chargebacks. Here are list of things that you can expect:

There are many players in overall process, the card brand, card owner, payment brand, processors, and the merchant. If customer has reasonable claim then card brand will send a temporary credit to the card owner and the process of chargeback starts. The funds are debited from merchant’s account during the process.

There will be a notification via mail, fax, or online management system about the chargeback. If you submit documentation on time and challenge the chargeback successfully in time assigned to you, then funds will be returned. But if documentations are not submitted, then you won’t get funds.

These were things that you can expect from banks that will handle your case, here is how your processor can handle your case and ensure to prevent chargebacks.

Processors helping business to avoid chargebacks

Blacklist: A list can help business owners to identify frauds, regardless of type of fraud committed. Merchants can enlist those who have caused trouble once. Merchants also have option to block cards that have been involved in some sort of fraud. Individual IP addresses, emails, or entire country can be banned. There aren’t many processors offering these facilities so merchants should check whether they have it.

Whitelists: Just like a blacklist, there is a whitelist that helps manage demographic of customers. A blacklist bans few individuals, but a white list bans entire population, allowing only few using a protective barrier. For example, a merchant may want to block all the countries except USA, UK, and Australia. Black and white lists help reduce risk and prevent transactions that merchant thinks will result in chargebacks. Consulting with the processor will help manage both white and black lists.

Limits: If a criminal try to run a card, it may go for many other purchases as well before detection. If there is one successful fraud attempt, then criminal will for sure want to try the same or different card. Having limits is essential because it help merchants monitor transaction frequency. For example, an IP address could be limited or prohibited from attempting to purchase for a short time. Velocity limits is type of tool usually provided by processor to control number of transactions.
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