A chargeback occurs when your customer formally disputes a transaction with their issuing bank. Because it is a dispute initiated by your customer and their bank, our knowledge or ability to assist is limited.
You will always receive correspondence in the mail regarding a chargeback. Please follow the instructions in the notice to resolve the chargeback. You can contact the chargeback department by calling 1-800-672-5008. You can fax them at 402-933-1525. Anything sent to them must include the case number listed in the notice.
Chargebacks are an unfortunate and unavoidable reality of processing credit cards. Please note the following.
- They’re $25 each. Chargebacks follow strict Visa/MC/Amex guidelines and require arbitration between the acquiring bank (VizyPay) and your customer’s issuing bank. This carries an internal cost, and as such, chargebacks carry a $25/instance fee.
- Chargebacks are monitored by Visa/MC/Amex and can impact your ability to accept credit cards in the future. Processing banks and credit card associations see high chargeback rates as proof of a business’s inability to properly work with customers and are seen as high-risk.
- You can ship merchandise or deliver a service, and still lose the value of the sale. A chargeback can be won by your customer in many different circumstances. In particular, chargebacks in a card-not-present environment tend to favor the customer very often.
Reduce chargebacks by doing the following:
- Respond to customer complaints. By resolving a dispute before the customer calls their bank, you can save yourself a lot of effort.
- Offer a refund if you feel the customer may win a dispute. It’s cheaper to offer a refund than to lose a chargeback. You may also be able to offer a “half off” or some other discount to your customer to further ease the sting of the loss. Half is better than none!
- If you’re processing in a card-present environment, always capture a signed receipt with a full description of goods sold or services rendered. These will prove valuable in the chargeback arbitration and will likely tip the scales in your favor.
- If you’re processing in a card-not-present environment, always check for fraud! Many chargebacks are caused by fraud. Set your AVS and CVV filters, as well as your Daily Velocity filter and your Transaction Limit filters. These can save you a lot of headaches down the road.
A retrieval takes place when a customer’s issuing bank formally requests specific information from you, the merchant, or us, the acquiring bank. Retrievals are $25 each. They’re relatively rare, but often a retrieval will come in the form of an invoice request, or a copy of a signed receipt. When requested, it’s important to act quickly and provide the requested documentation. That way, the issuing bank can verify the validity of the sale, and you can potentially avoid a chargeback.
Visa Chargeback Guide
Click Here to view the full Visa Chargeback documentation
MasterCard Chargeback Guide
Click Here to view the full MasterCard Chargeback documentation
AMEX Chargeback Guide
Click Here to view the full American Express Chargeback documentation