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

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

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. 

If you get more information you can visit website related on this blog - https://www.chargebackexpertz.com/3-tips-overcome-tricky-credit-card-disputes/

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.

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.
If you any more information related blog you click the link – https://client.chargebackexpertz.com/signup.php

How to Respond Visa Chargeback reason code 53?

The Customer must have to make a legitimate attempt to resolve the issues or return the Merchandise for Refund. If the attempts do not change any things in the favor of Cardholder, the Cardholder will move forward and dispute the Chargeback against the Merchant with Reason: Not as Described or Defective Merchandise

In Reason: “Not as Described or Defective Merchandise Cardholder” claims that Good or Services which was provided by Merchant is not same as described at the time of purchase or the wrong merchandise was sent to the cardholder and the merchandise arrived damaged or defective.

Reason: Not as Described or Defective Merchandise link with an example:

Lisa purchase a Merchandise and after Shipping Lisa suffer with problem that Merchandise is damaged or defective (Some customer also suffer from various problem like: quality is not appropriate or not same as described by Merchant, Merchandise or Services is counterfeit), so Lisa first attempt to return the Merchandise to the Merchant and get refund, if this attempt is not fruitful, the Lisa legitimately file a chargeback for reason: Not as Described or Defective Merchandise

Why Customer Dispute a Chargeback accompanied Reason: Not as Described or Defective Merchandise?

• Wrong Merchandise was provided to the Customer.
• Shipped Merchandise was damaged during shipping.
• Merchandise or Services is counterfeit.
• Merchandise or Services did not match what was described to the Customer.
• Quality of Merchandise not same as what we display to the Customer.
• Sale of particular Merchandise or Services was misrepresented by the merchant as interpreted by the cardholder.

Prevention of Chargeback-Reason: Not as Described or Defective Merchandise

• Describe Merchandise or services accurately which was provided to the Customer.
• Provide evidence that Merchandise or Services are not counterfeit; Customer was agreed on particular sale.
• Provide evidences that goods or Services matched what was described to the Customer or displaying on Sales Receipt.
• Always ensure that damaged or defective Merchandise should be replaced and reshipped on a Shipping Address
• Issued Refund to the Customer if Merchant received the sold Merchandise in case: Defective or Damaged.
• Always provide right information about the Merchandise and Services

Rights and Limitation of Reason: Not as Described or Defective Merchandise

• Chargeback cannot be filled until 15 days after the date Merchandise was returned or Services were cancelled
• Before disputing the Chargeback the Customer must first attempt to return the Defective or Damaged Merchandise to the Merchant and waiting for Refund.
• Customer not disputed more than the Original Transaction Amount.

Get more information visit website - https://www.chargebackexpertz.com/

How Does The Chargeback Real Time Alerts Work?

Chargeback is something no merchant would want to experience in his or her business and get distresses with. However, it is next to impossible to attain 0% chargeback ratio. Well, what if Chargebackexpertz assures you with an effective chargeback network that alerts you about a chargeback in near real-time so that you can take quick and adequate action in no time?

Real-time chargeback Alerts is a reliable chargeback management tool that helps in preventing chargebacks and also dispute some of them that affect the business revenue.

Stop Fraud

Fraud alert system is what every merchant needs to fight against a chargeback. However, most of the merchants take a fragmented approach to prevent fraud that leaves them open to increased and improved attacks. As a result, security risks and financial crimes are increasing day by day.

Customer fraud is one of the fastest growing threats in the e-commerce industry and it is affecting businesses of around 80% of the merchants every year. To fight against such threats, merchants need a system that helps in dealing with such frauds by customers and that also enables them generating better revenue. Chargebackexpertz provides a real-time fraud alert system that sends a notification to the merchant once the issuing bank confirms the fraud.

Using Fraud Alert

During chargeback, you not only lose the product sold along with the cost but you also have to pay an additional chargeback fee as a penalty. It also damages the image of the company and can become the reason of getting under the fraudulent tag. To avoid such situations, we offer a Chargeback Alert System as per your requirements that is also updated at regular intervals. The benefits include:

• Stopping fulfillment of fraudulent orders, which in turn helps in saving cost of product as well as cost related to fulfillment
• Reducing chargebacks
• Adding to the current Cyber Source Service.

Benefits

• Our real-time alerts help in saving chargeback fee, which is otherwise spent on chargeback management
• We provide one of the largest networks as we are connected with a number of issuers
• Alerts help merchants to lower the chargeback rate, which can prevent freezing of account/funds
• We only charge for the services availed, no extra/hidden fee
• We provide detailed reports and diagnostics services
• With very less integration, merchant can start receiving alters within 24 hours
• With real-time alerts merchants can prevent frauds in no time

Connect with Chargeback Expertz

Chargebackexperts have been successfully providing the largest chargeback Real-Time Alert network for years. We provide reliable dispute mediation network as well as proprietary technology. Unlike most of the chargeback alert networks, we provide comprehensive network coverage that permits maximum issuer involvement and guaranteed chargeback reduction.

For further assistance feel free to call us on +1 855-465-4723

Every Merchant Needs Fraud alert Service to Stop and Prevent from Chargebacks

Fraud alert system is what every merchant needs to fight against a chargeback. However, most of the merchants take a fragmented approach to prevent fraud that leaves them open to increased and improved attacks. As a result, security risks and financial crimes are increasing day by day.

Customer fraud is one of the fastest growing threats in the e-commerce industry and it is affecting businesses of around 80% of the merchants every year. To fight against such threats, merchants need a system that helps in dealing with such frauds by customers and that also enables them generating better revenue. Chargebackexpertz provides a real-time fraud alert system that sends a notification to the merchant once the issuing bank confirms the fraud.

Features

Monthly Performance Reports

Control Features of Alerts Received

Notification via E-mail

Implementation of Stand-alone Service within 48 hours

Multiuser Setup to Receive Notification

Real-time Notifications, as soon as bank confirms the fraud

Chargeback Alerts

Chargeback is something no merchant would want to experience in his or her business and get distresses with. However, it is next to impossible to attain 0% chargeback ratio. Well, what if Chargebackexpertz assures you with an effective chargeback network that alerts you about a chargeback in near real-time so that you can take quick and adequate action in no time?

Real-time Alerts is a reliable chargeback management tool that helps in preventing chargebacks and also dispute some of them that affect the business revenue.

Benefits of Real Time Fraud Alert

During chargeback, you not only lose the product sold along with the cost but you also have to pay an additional chargeback fee as a penalty. It also damages the image of the company and can become the reason of getting under the fraudulent tag. To avoid such situations, we offer a Fraud Alert System as per your requirements that is also updated at regular intervals. The benefits include:

• Stopping fulfillment of fraudulent orders, which in turn helps in saving cost of product as well as cost related to fulfillment
• Reducing chargebacks
• Adding to the current Cyber Source Service.

Connect with Chargebackextertz

Chargebackexperts have been successfully providing the largest chargeback Real-Time Alert network for years. We provide reliable dispute mediation network as well as proprietary technology. Unlike most of the chargeback alert networks, we provide comprehensive network coverage that permits maximum issuer involvement and guaranteed chargeback reduction.