Chargeback overview
A chargeback occurs when a customer disputes a transaction, if there was a processing error, or for potential fraud. Chargebacks can be costly to you. Below are a few tips to help prevent chargebacks:
- Always swipe the card or obtain a card imprint at the time of the sale to prove that the card was present for the transaction.
- Obtain a signature and verify that the signature matches the back of the card. If the card is unsigned, ask for identification and have the customer sign the card in your presence.
- Obtain an authorization for the total amount of the sale. If the transaction is declined, obtain another form of payment.
- Make a Code 10 call to the Voice Authorization Center if you are suspicious about a card or transaction.
- Clearly disclose your return policy on the customer's copy of the sales draft.
- Always issue a refund to the credit card that was used during the initial purchase.
- Review the hologram on the card — MasterCard has interlocking globes, VISA has flying doves. Discover® Network has a three-dimensional hologram-a sphere of interlocking rings with an arrow pointer that has "DISCOVER" written in small letters and a repetitive wave and scattered stars background-reflects light, appearing to move as the Card rotates.
- Check the signature panel for erasure marks
- Check the expiration date — do not accept the card if it is either prior to the valid date or after the expiration date
- See that the embossed number on the card matches the number on the terminal, even if you received an authorization.
The Chargeback process follows the same steps as the Request for Copy process, although the end result differs. Often the cardholder's request for copy precedes the Chargeback process. If you have a rebuttal to a chargeback you receive, you should respond immediately.
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