A chargeback begins when a buyer contacts their card issuer to dispute a transaction. The chargeback is passed through the applicable payment network to the seller. Your account will be charged at the time the chargeback is received. When the seller receives the chargeback, it will include a “respond by” date. Since the payment networks only allow a limited amount of time to respond to a chargeback, it is critical that any response be provided by this date.
In some cases, chargebacks can be “re-presented,” in other words information can be presented back to the cardholder’s card issuer disputing the chargeback. Below are the most common scenarios where re-presentment is feasible. The ultimate decision of whether or not to accept the re-presentment rests with the cardholder’s bank. Potential re-presentment scenarios include:
- If the chargeback reason is “non-receipt of merchandise” and signed proof of delivery is available, the chargeback can be re-presented with a copy of the delivery confirmation including the signature and the complete address that the item was delivered to.
- If the chargeback reason is “credit not processed” and the customer has already received a refund, the chargeback can be re-presented along with a copy of the cancelled check or the credit card refund information.
- If the chargeback reason is “fraud” and proof of delivery to the buyer’s billing address is available and a complete address verification match was received, the chargeback can be re-presented with a copy of the proof of delivery.
- If the chargeback reason is quality-related, e.g. “not as described” or “defective merchandise” and the seller has not received the merchandise back, the chargeback can be re-presented with the statement that the merchandise has not been returned.
The consumer must give you the opportunity to correct any issue that they feel is a reason for a chargeback before filing a chargeback. As such, you must take any customer complaint to heart and make sure to document the conversation. You want to make sure that if you are providing a service, the contract or agreement used to authorize the service is detailed enough to clearly describe the service being provided and the cost of providing such service. A signature from the customer accepting the product and services provided is another key to substantiating your re-presented chargeback and winning the claim.