If you have received a chargeback you will naturally want to know why and,
where possible, how to avoid them in the future. We have answered some Frequently
Asked Questions below to help you.
What is a chargeback?
Why does a chargeback occur?
How do I know if there is a
chargeback on my account?
What information will I be asked
to supply?
 |
A chargeback is a credit or debit card transaction, which has been returned
unpaid by the cardholder's bank. |
|
|
We will do everything possible to defend the chargeback on your behalf.
However the nature of the dispute and the type of chargeback we have been
issued with will greatly affect what actions we can take. |
|
|
Each chargeback has time limits and specific rules and regulations within
which we have to work. These are set by the Card Schemes, and influence the
actions we can take when dealing with chargebacks. |
Some commonsense examples are:
|
|
The genuine cardholder claims they did not authorise or participate in
the sale (more common for Mail Order/Telephone Order or e-commerce transactions) |
|
|
Processing error - e.g. invalid account number on the transaction receipt
or incomplete or illegible sales vouchers |
|
|
Dispute - the cardholder disputes the underlying transaction e.g. late
delivery of goods/services, wrong goods delivered |
|
|
Not Authorised - authorisation was not obtained and the transaction was
over the agreed floor limit |
|
|
A response to a Request For Information (RFI) was not received by the
card issuing bank within timescales. An RFI asks for information about the
transaction, which has been requested by the card issuing company. |
|
|
You will always receive a letter from us advising you of the chargeback
situation. |
|
|
In most cases you will receive a Request For Information (RFI) before
a chargeback is raised, though sometimes a chargeback can be raised without
a RFI e.g. the transaction was above the agreed floor limit and authorisation
was not sought in accordance with the Streamline agreement. |
| The more information you supply at this stage, the greater
our ability in our defence of the cardholder's claim. You should supply the
following as a minimum: |
|
|
A copy of the sales receipt or Mail Order/Telephone Order schedule |
|
|
The invoice relating to the goods/services provided |
|
|
For e-commerce transactions - a copy of the source documentation showing
the full details of the transaction data which was captured at the point of
sale e.g. screen prints (you may have to approach your service provider for
these) |
|
|
And if applicable, documentary evidence of delivery, preferably signed
by the cardholder. |
| The transaction documentation you supply must contain: |
|
|
Card Number |
|
|
Cardholder's signature (where appropriate) |
|
|
Transaction Amount |
|
|
Transaction Date |
|
|
Merchant name/location |
|
|
Card Expiry Date |
|
|
Cardholder Name |
|
|
Description of Goods/Services provided |
