Chargeback Basics

There is a lot that you can do to help protect yourself from chargebacks.  Learn more by reviewing our Best Practices Guide

Retrieval Request


A Retrieval Request is a request for transaction information (such as a sales receipt, invoice, or contract) for a particular secure payment transaction. This can occur when a cardholder does not recognize a transaction on their billing statement. If you receive a "retrieval request" from a cardholder or the cardholder's bank requesting a copy of a sales draft or mail order form, do not ignore these requests. Failure to comply promptly could result in a non-recourse chargeback.




Chargeback


A Chargeback is the process of the Issuer sending the transaction back to the merchant. This can occur because of a processing technicality, a customer dispute or fraudulent activity.




Representment


A Representment is the merchant rebuttal to a chargeback, sent back to the Issuer for review. This is the process by which a merchant can respond to a chargeback with an Issuing bank and allows the merchant to present evidence to prove the chargeback is not warranted.




Pre-arbitration / Second Chargeback


A Pre-arbitration or Second Chargeback can occur if the Issuer does not agree with the representment.




Arbitration


An Arbitration can occur when the Issuer continues to dispute the case and does not accept the previous representment, pre-arbitration response, or second chargeback response. At this stage, the card brand will determine financial liability between members.




Pre-compliance


Pre-compliance is notification to the other party that a violation of the network rules and regulations has occurred and no chargeback rights are available.




Compliance


Compliance is the escalation of the pre-compliance case to the card brand if a resolution has not been reached.





 

We are here to answer any additional questions you may have about chargebacks.  Please contact us or request a free analysis of your processing statement.