Moneris

Managing Your Business: Chargebacks

Managing Your Business

Chargebacks

Part 1

What is a Chargeback?

A chargeback is an adjustment to a customer's account, resulting from previous sales transaction being disputed by the issuing bank. As per your Merchant Agreement with Moneris, you are liable for all chargebacks, therefore it is your responsibility, as well as being in your best interest, to try to prevent them.

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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Part 2

Understanding fraud risks

What is ecommerce fraud?

Credit card fraud continues to be a significant issue for businesses and consumers, and it hurts us all. Moneris has taken a proactive approach to helping merchants reduce fraud by creating the Moneris "Every Card. Every Time" fraud prevention program to help educate front-line staff about fraud.

There is anonymity buying through the mail, over the telephone, or online, but here are the steps you can take to help stop credit card fraud.

Watch for:

Larger than normal purchases
Orders of "big ticket" items for resale
Orders shipped Rush or Overnight for quick sale
Orders shipped to a location different from the billing address
Multiple different cards declined before transaction approves
Transactions on similar account numbers
Orders shipped to a single address, but made from multiple cards
Card testing

Please see A Guide to Preventing Credit Card Fraud for further information.

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Part 3

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 access Chargeback Reports to view and respond to your disputes.

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Part 4

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.
In the event of shipping or production delays, reach out to your customers to advise them and to provide a new estimated time of delivery.

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.
Provide a clear method for customers (Phone, Email, or both). Ensure that communication from customers is reviewed and responded to in a timely manner.
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.
For Card-not-Present Transactions, consider implementing an authentication or fraud prevention solution designed to make these transactions more secure in real time.

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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You did it!

Lesson Complete

Chargebacks

Get in the know with your business’ transaction reports

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