Common chargebacks in a card-not-present environment (some of these reasons may be exclusive to POS of MOTO (mail order / telephone order) merchants).

• Cancelled recurring transaction
  • Merchant continued to charge cardholder’s account for recurring transaction after receiving a notice of cancellation.
    • Tips:
    1. Provide the documentation by the due date to preserve your rights.
    2. Represent the chargeback regardless of whether the customer states they will cancel the chargeback (to preserve your rights).
    3. Issue credit to the account used in the purchase and not by check or money order.
• Service not provided or merchandise not received
  • Cardholder acknowledges participating in the transaction and claims one of the following occurred:
    • Cardholder did not receive merchandise or other item(s) of value that was shipped.
    • Merchant was unwilling or unable to provide purchased services.
    • Services were paid for using another method.
    • Cardholder did not receive merchandise at the agreed upon location or by the agreed upon delivery date.
    • If the credit issued was a partial credit, be sure to include an explanation as to why full credit was not issued.
      •   Tips:
        1. If available, provide a signed delivery receipt or similar document by the due date to preserve your rights.
        2. Represent the chargeback regardless of whether the customer states they will cancel the chargeback (to preserve your rights).
        3. Issue credits to the account used in the purchase and not by check or money order.
• Duplicate processing
  • A single transaction was presented two or more times to the issuer for the same cardholder account number, similar transaction amounts and similar clearing data. If the same transaction was processed by different acquirers, the issuer is required to dispute the transaction that posted last.
    • Tips:
      • Provide two different signed receipts or invoices. If sales receipt does not contain detail of items purchased, include an itemized list.
• Fraudulent multiple transactions
  • The issuer receives a written compliant from its cardholder who acknowledges participation in at least one transaction at the same merchant location where the other transaction(s) allegedly involving the cardholder took place, but states that:
    • He/she neither participated in nor authorized the other transaction(s), and
    • The card was in his/her possession at the time(s) of the other transactions(s).
      • Tip:
        • Always keep a copy of the signed sales draft and or invoices for all transactions that the cardholder participated in, provide to the issuer when requested.
• No authorization
  • Transaction exceeds the floor limit and an authorization was not obtained on the transaction, or transaction is an online check card transaction or an original adjustment.
    • Tip:
      • Authorization code along with date and amount of authorization, if other than the transaction date and amount.
• Incorrect transaction amount or account number
  • Used under any of the following circumstances:
    • Merchant processed an incorrect transaction amount.
    • Merchant processed an account number that did not match the one on the transaction receipt.
    • Cardholder’s transaction receipt contains an addition or transposition number.
    • Transaction receipt was altered without cardholder’s permission.
      • Tip:
        • A signed sales receipt with imprint or swipe to show that cardholder agreed to the amount or that card number was correct. A written rebuttal is required if amount was altered after cardholder signed the receipt.
• Fraudulent transaction – Card-Not-Present environment
  • A transaction was processed in a card-not-present environment without the cardholder’s per mission or with a fictitious account number.
    • Tip:
      • Invoice with ship to/bill to addresses, AVS results, CVV2 results if applicable, and signed proof of delivery.
• Credit Not Processed
  • The merchant issued a credit transaction receipt or refund acknowledgement but the transaction was not processed through interchange. The cardholder returned merchandise or cancelled a sale but did not receive a credit receipt or refund acknowledgement.
    • Tip:
      • A written rebuttal addressing the cardholder’s claim and any supporting documentation to prove the case, such as a signed contract or return policy.