| Joe Q. Merchant, a successful e-commerce
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| | customer must return it before a
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| business owner, opens a letter from the
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| | chargeback can be initiated - at least if
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| Chargeback Department of his credit card
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| | the customer used a Visa or Mastercard.
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| processing company. "What's this?" he
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| | It is then up to the merchant how to
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| wonders, intuitively knowing that this
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| | proceed (i.e., to either grant or deny a
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| can't be good news. His suspicions are
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| | refund). Disputes regarding a service
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| proven correct when he reads this
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| | fall in a very gray area. While it is
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| retrieval request form where he must
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| | mandatory that the customer attempt to
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| provide information about a particular
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| | work out an agreement with the merchant
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| transaction. While no specific reason is
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| | before attempting to charge back payment,
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| offered as to why this request has been
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| | such a conference may result in a
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| initiated, Joe knows that he must comply
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| | stalemate. The almighty refund policy
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| to avoid a chargeback - where funds can
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| | may help the merchant but if there are
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| be taken out of a merchant's account due
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| | loopholes, the customer may very well be
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| to a variety of reasons and placed back
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| | deemed victorious. And it should be
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| into a given customer's account.Joe
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| | clear that any "tie" goes to the
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| ponders what went wrong with this
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| | customer; if the merchant cannot provide
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| particular transaction. Is it possible
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| | conclusive evidence that services
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| that a member of his staff accepted an
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| | rendered were thorough and appropriate or
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| invalid credit card (e.g., expired date)?
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| | if there exists reasonable doubt, Joe Q.
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| Has there been a processing error (e.g.,
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| | Merchant will not only have lost time
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| an input error has been committed where
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| | with the customer but his money. And if
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| the wrong account has been charged)?
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| | the customer asserts that services were
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| These scenarios are very unlikely, Joe
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| | not rendered at all, Joe needs to show
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| decides. In all probability, a customer
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| | evidence of his work to the processing
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| has either disputed a) the validity of
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| | bank or a contract that spells out that
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| the transaction (i.e., whether the
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| | he intended to provide service on a
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| customer has authorized the transaction)
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| | future specified date. Again, any
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| or b) the quality of the service and/or
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| | inconclusivity that Joe fulfilled his
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| product (i.e., the customer has voiced
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| | obligation or planned to will result in a
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| dissatisfaction and wants a
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| | thinner wallet for Joe.Although Joe Q.
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| refund).According to guidelines set by
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| | Merchant was quick to dismiss the notion
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| Visa, Mastercard, American Express and
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| | that a point-of-sale processing error
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| Discover, Joe Q. Merchant must reply with
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| | transpired, he needs to realize that
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| written correspondence, providing all the
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| | there exists the possibility for human
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| requested information - in an expedient
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| | error on any given transaction. What
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| fashion - in an attempt to rebut any
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| | happens, for example, if a customer has
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| possible chargeback. (A review committee
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| | inadvertently been billed twice for a
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| will eventually render a decision as to
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| | product or service? What happens if a
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| the legitimacy of a chargeback.) But the
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| | customer cancelled a recurring billing
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| retrieval request has indicated the date
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| | charge but was still assessed a charge?
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| that this information must be received.
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| | In business, attention to detail is a
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| If the merchant offers evidence of a
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| | must. But if Joe or a member of his
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| transaction after this date, a chargeback
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| | staff erred, a credit to the customer
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| will ensue and the merchant will
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| | must be issued posthaste.Of course, the
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| automatically lose those hard-earned
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| | best way to prevent chargebacks starts
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| dollars that he/she may have already
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| | with Joe's actions and not necessarily
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| spent.Online merchants, such as Joe, have
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| | the customer's actions. Are safeguards
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| more difficult obstacles to overcome than
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| | in place to prevent processing errors?
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| retail merchants in the resolution of
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| | For instance, on phone orders, do the
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| chargebacks. After all, those who
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| | merchants' representatives ensure that
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| generally swipe credit cards have a
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| | every given digit, including the
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| transaction slip or receipt. If a card
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| | expiration date, is absolutely correct?
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| does not swipe through a credit card
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| | Are orders confirmed by fax?; Are phone
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| terminal, retail merchants must run the
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| | numbers checked with directory
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| card through a manual imprinter to prove
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| | enquiries?; Are customers contacted back
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| that the transaction was authorized. In
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| | by phone to confirm the telephone
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| contrast, those who run businesses online
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| | number?Internet orders need to be
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| will not have such a physical receipt
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| | evaluated, too. Are fraud-preventative
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| proving that the customer authorized the
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| | devices, such as the AVS and CVV2/CVC2
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| sale. This is why online transactions
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| | code employed? Was the customer's
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| are categorized as "card not present" or
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| | address verified by calling the card
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| "customer not present."Every year, a
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| | issuing bank's Voice Authorization
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| myriad of chargebacks result when
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| | Center? (Alternatively, the merchant can
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| customers claim that they never received
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| | automatically decline any transaction
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| the merchandise. In such instances, it
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| | where there is an AVS mismatch.) Is the
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| is imperative that the merchant has a
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| | refund policy easily accessible and
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| proof of delivery notice, indicating the
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| | observable on the website? Does a
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| date with the customer's signature. If
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| | recognizable Doing Business As (DBA) name
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| the signature on this notice belongs to
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| | with a concomitant phone number appear on
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| another individual (e.g, neighbor) or
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| | the customers' statements? Are signed
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| even if the customer claims that he/she
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| | delivery receipts obtained?Logic and
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| never signed for the item (signature is
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| | intuition are powerful tools in
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| not clear), the merchant can lose the
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| | preventing chargebacks, too. If Joe Q.
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| chargeback. It is always best that an
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| | Merchant has an uneasy feeling about a
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| online merchant use the Address
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| | transaction (e.g., the customer is
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| Verification system (AVS) to ensure that
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| | willing to pay additional fees for faster
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| the address listed on the customer's
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| | delivery for a high-ticket item, the
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| credit card matches the billing address.
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| | customer has a domestic billing address
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| Moreover, it is advisable to check for
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| | but a foreign shipping address, etc), he
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| Visa's CVV2 code or Mastercard's CVC2
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| | needs to proceed with caution.
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| code - the three digits printed on credit
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| | High-ticket items are profitable but
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| cards near the signature panel in the
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| | risky and Joe Q. Merchant must especially
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| back of the card - to help determine the
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| | perform his due diligence with such
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| validity of a sale. This aides the
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| | transactions.A yellow light should also
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| merchant in helping to identify a
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| | appear for any foreign order,
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| cardholder in a non-face-to-face
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| | particularly those that originate from
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| transaction.Of course, the merchant may
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| | certain problem countries like Singapore
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| then insist that the billing address and
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| | or Indonesia. Indeed, Joe needs to weigh
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| ship to address be the same to reduce the
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| | the benefits vs. the potential cost of
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| possibility of a chargeback. (As an
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| | doing business outside the
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| added measure of protection - as a
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| | States.Although chargebacks can raise
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| proactive maneuver - a merchant may fax a
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| | their ugly head for any merchant, Joe Q.
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| customer an order or invoice form and ask
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| | Merchant realizes that by taking a
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| that the form be faxed back so that the
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| | thorough, hands-on and cautious approach,
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| customer's signature may be on file. In
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| | he can substantially reduce or eliminate
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| another scenario, if the customer has
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| | their occurrence. As an added measure of
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| initiated a chargeback for non-delivery
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| | protection, Joe will conduct business
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| of goods, before 30 days has elapsed from
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| | ethically and responsibly and reach out
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| the time that the transaction occurred,
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| | towards his customers to ensure their
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| the merchant can respond that ample time
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| | satisfaction. He will, for example,
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| for shipment was not provided -
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| | describe products and/or services with
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| especially if he/she can submit the terms
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| | accurate descriptions, provide a clear
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| of agreement, indicating the delivery
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| | and fair return policy and establish
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| date. If the merchant knows that
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| | dialogue, whenever possible, with the
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| delivery will be delayed, it is
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| | customer - either before, during or after
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| imperative to contact the customer should
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| | a given transaction.Advancing technology,
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| the customer derive the conclusion that
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| | to better identify customers (e.g.,
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| the shipment was never made. Moreover,
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| | Verified by Visa or SecureCode provided
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| at least with phone orders, the merchant
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| | by Mastercard), will serve to reduce
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| may even decide to postpone charging the
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| | fraud and/or limit chargebacks. But
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| card until the delivery is near
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| | until technology catches up with the
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| completion or completed.The retrieval
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| | oft-unpredictable world of e-commerce
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| request/chargeback battle becomes even
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| | chargebacks, Joe Q. Merchant can look
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| more complex if the customer claims that
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| | towards one reliable stop-gap measure:
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| the product or service does not live up
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| | himself.Copyright 2006 William
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| to the customer's expectations. If this
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| | HamiltonWilliam Hamilton owns a payment
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| has occurred, Joe Q. Merchant needs to
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| | processing company, IntelliCollect (a
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| submit his refund policy and proof that
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| | subsidiary of United Bank Card), a firm
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| the customer was made aware of such a
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| | offering cost-effective payment
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| policy.If a product was purchased, the
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| | processing solutions.
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