In this article, we’ll explain what pre-arbitration cases are and how they differ from other iterations. So, what happened? If it’s a Visa transaction, then you’ve just been hit with a pre-arbitration case, which could be one of the biggest pains you have to deal with as a merchant. Not only do they reject the dispute you just won, but the funds have been removed once again from your account. Just when you think you’re in the clear, the bank sends you a second notice. The original funds have been returned, and all is right with the world. You kept excellent records, provided the best evidence, and made the most compelling argument… and you won. Bank chargebacks stem from internal errors the cardholder is typically not even aware the chargeback was filed. The Pre-Arbitration Chargeback Process ExplainedĪs a merchant, few things feel better than winning a chargeback. With customer disputes, the cardholder contacts the bank, which will file a chargeback on the cardholder’s behalf. How are bank chargebacks different from customer disputes? What kinds of errors cause bank chargebacks?īank chargebacks are caused by a variety of factors, including discrepancies in account numbers or amounts, lack of authorization, accepting expired credit cards, merchant fraud, and similar things. The bank files the chargeback based on an error or anomaly in the transaction. Contact Chargebacks911 and learn how a professional assessment can save you time and revenue today.Ī bank chargeback type of dispute filed against the merchant by the issuing bank. Don’t fall victim to another bank chargeback. Our proprietary 106-point Merchant Compliance Review was specifically designed to identify hidden chargeback triggers that are costing you money. If you find you need help from an external source, Chargebacks911® offers the solution. An exhaustive, unflinching evaluation of your business is the only way to identify policies and practices that create problems.Įven with the best intentions, however, it’s hard to take a completely unbiased look at your own operation. Self-examination is one of the most challenging-yet crucial-actions you must take to eliminate internal chargeback triggers. Ship merchandise before depositing the transaction.Deposit sales/credit receipts within one to five days of the transaction date.Grant credits and cancellations as soon as the customer asks.Always request authorization, and never attempt to bypass a declined card.Strictly adhere to proper network processes and regulations.Make sure you’re following proven best practices for accepting payment cards in card-not-present situations: One of the best ways to reduce risk is to take a fresh look at your policies and procedures. Seemingly minor errors can lead to significant revenue loss. Luckily, most bank chargebacks are the result of simple missteps on the merchant’s part, which means they’re nearly 100% preventable. The bottom line is that you’re better off trying to avoid bank chargebacks at all costs. In many situations, challenging the chargeback isn’t even an option. Since the issuer is the one identifying the mistake, you would need an iron-clad case to overturn their decision. ![]() Outside of a technical fault, however, it’s rare that the issuer will reverse a bank chargeback. Winning a reversal through the representment process may allow you to recover some of the lost revenue (all fees would still apply, of course). If you have evidence that a customer dispute was invalid, you can challenge the chargeback through representment. Both the buyer and the seller may be completely unaware that a chargeback is being processed.Īs we mentioned, bank chargebacks are also much harder to fight than customer disputes. The issuing bank and the acquiring bank often work to resolve these disputes at the banking level. And, true to their name, bank chargebacks can often be handled at the banking level. ![]() How Is a Bank Chargeback Different?Īs the name implies, a bank chargeback is initiated by the issuer, not the customer.Ī bank chargeback happens when the issuer detects some anomaly in the transaction process. If you can prove the chargeback was illegitimate, though, you may be able to reverse it through representment. You can prevent most chargebacks resulting from criminal fraud or merchant error, but you can’t really prevent those resulting from friendly fraud. The practice of filing invalid chargeback requests-known as friendly fraud-may be responsible for more than 60% of all chargebacks filed this year. Unfortunately, the system is increasingly used as a loophole to commit fraud, rather than prevent it. ![]() The chargeback system was designed to be used as a “last resort” to protect consumers from criminals or dishonest merchants. Whether initiated by the bank or by a customer, we can help you stop chargebacks before they happen.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |