Chargebacks

Managing Your Business: Chargebacks

Managing Your Business

Chargebacks

Step 1

What is a Chargeback?

A chargeback is an adjustment to a merchant's account from a previous sales transaction. The reasons for chargebacks can be due to errors made by the merchant when submitting credit card transactions or violation of the card brands operating regulations. There are four categories of chargebacks:

Fraud
Authorization
Processing Errors
Consumer Disputes.

Please see the Merchant Operating Manual or the Card Brand Rules and Regulations for more information about chargebacks.

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Step 2

How to Respond to Chargebacks and Sales Draft Requests

When a chargeback occurs, Moneris will email you a Sales Draft Request or Chargeback Notification. This message, which you can view by logging into Merchant Direct, may ask you for a copy of the receipt or other required documentation as proof that the cardholder authorized the sale. We may also ask for other supporting documents related to the sale.

When you receive these notices, please respond to them within the timeframe indicated on the notice. There is no need to fax or mail anything. Simply log in to your Merchant Direct account and go to the Outstanding Chargebacks or Outstanding Copy Request Report to view the dispute details, upload documents, and/or accept the dispute.

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Step 3

Tips for Avoiding 5 Major Chargeback Scenarios

Review the tips below to help protect your business from Chargebacks.

Non-receipt of merchandise

Deliver product or service at time of transaction or agreed upon date and location.
For merchandise that is shipped, ensure the cardholder signs for the items when received.

Quality of merchandise or service

The description of goods or services should be accurate. And, if possible, obtain certifications to guarantee merchandise authenticity.
For transactions processed face-to-face, returns, refunds, or cancellation policies must be clearly outlined on the transaction receipt, where it is easily seen by the cardholder.
For online transactions, returns, refunds, or cancellation policies must be either in a sequence of pages before the final checkout, or before an acknowledgement check box a near to the ‘Submit’ button on the checkout page.
If a customer disputes a transaction, try to resolve the issue directly and document your efforts.

Avoiding non-receipt of merchandise with Moneris Desk/5000

Fraudulent card-present transactions

Ensure in-person transactions are authorized by your terminal by processing a tap, chip and PIN, or chip and signature transaction.
Never swipe card unless a chip is not present on the card face. If the swiped transaction does not authorize on the first attempt, get another form of payment.
Do not enter the card number manually, doing so makes you fully liable for any potential loss or risk associated with the transaction.

Avoiding fraudulent card transactions with Moneris Desk/5000

Card-Not-Present transactions

Manually entering a card number from an email, or a telephone call or a mail order is always a risk. When you manually key, you are accepting all the liability for the transaction and any fraud loss that may occur. If you are suspicious of any transaction, do not proceed.
Remember that an authorization does not mean that the actual cardholder is making the purchase or that a legitimate card is involved. An authorization only means that credit is available, and that the card is not currently blocked.

Avoiding fraudulent card-non-present transactions with Moneris Desk/5000

Lack of proper authorization

Ensure you obtain proper authorization on the date of purchase, or the shipment date.
If you receive a ‘Declined’ response, do not continue to attempt authorization with the same card. Ask for another method of payment.
As per your merchant agreement, you are liable for all chargebacks and therefore it is your responsibility to try to prevent them.

Proper authorization for transactions with Moneris Desk/5000

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Step 1

What is a Chargeback?

Step 2

How to Respond to Chargebacks and Sales Draft Requests

Step 3

Tips for Avoiding 5 Major Chargeback Scenarios

Lesson Complete