Do you currently accept credit cards?
A cardholder or card issuer can place a dispute on a transaction, resulting in a chargeback. Reasons include: investigation of a fraud case, dispute over merchandise quality, failure to receive merchandise or improper pricing of merchandising. The merchant's account is debited and the merchant must provide proof that the transaction is valid and satisfactory to the rules/regulations of Visa/MasterCard to get money back. This page includes important information about chargebacks and retrievals.
A chargeback is a transaction disputed by the cardholder or card issuer. There are many reasons for chargebacks, but the most common are returned merchandise, terminated services, disputes, errors, or fraud. Merchants must be able to provide proof that the disputed transaction is valid and in accordance with Visa/MasterCard regulations or risk having their account debited for the disputed amount.
There are several situations in which chargebacks may occur. The most common cardholder-initiated disputes include:
For your business, a chargeback translates into extra processing time and cost, a narrower profit margin for the sale, and possibly a loss of revenue. It is important to carefully track and manage the chargebacks that you receive, take steps to avoid future chargebacks, and know your representment rights. In addition, you should also take measures to recover losses from customers who are financially liable for transactions that were charged back to your business.
If you are an Elavon merchant, you may elect to receive chargeback notices and retrieval requests via U.S. mail, Autofax or online at MerchantConnect.com.
Online, the status of your most recent chargebacks can be found using our online reporting tool, MerchantConnect. For an even more streamlined way to manage chargebacks and retrievals, consider Online Case Management (OCM), a new electronic workflow solution offered through MerchantConnect Premium. OCM allows you to receive, view, respond to and manage your chargeback and retrieval activity. With OCM, you can track the lifecycle of all your chargebacks and retrievals -- from the initial request to the closure. OCM also provides extensive reporting on your activity at any of your locations.
With the Auto Fax program, you can quickly and conveniently be notified via fax of any chargebacks or retrievals posted to your account within 24 hours of it being generated. The Auto Fax program gives you more time to respond to your chargeback and retrieval requests. In addition, you will receive a reminder notice in the event you forgot to respond to the notice. All you need to enroll in the Auto Fax program is a dedicated fax line. To enroll, simply contact USBSI Customer Services at (888)468-1155. To make other updates or change the way you receive a retrieval request or chargeback notification, contact Merchant Services or the Chargeback Department at the toll-free telephone number listed on your notice.
While it may not be possible to eliminate chargebacks entirely, you can reduce their occurrence by resolving issues and disputes directly with the cardholder and following the proper authorization and processing procedures. Because chargebacks can be costly, you should make every effort to prevent them. Chargeback fees can be minimized by following best practices at the point of sale. Generally, you should remember to: