Credit Card Chargebacks

• Did not receive a product or service
• Does not recognize the charge or payee on his or her credit card statement
• Believes the product or service was defective, damaged or not as it was described
• Was a victim of fraud – his or her credit card was stolen or used without consent

1. Your customer contacts their issuer and explains the problem.
2. The issuer researches the accuracy of the claim. If it is considered unreasonable, he or she is then responsible for the payment, and your settlement funds are not impacted.
3. If your customer appears to have a reasonable claim, the issuer will make a temporary credit payment to your customer and begins the chargeback process.
4. During the chargeback process, the card issuer will obtain funds from the respective payment brand, who in turn debits the funds from Chase Paymentech. We, in turn, will debit the funds from your settlement account, then send documentation that notifies you about this chargeback.
   • If you wish to contest the chargeback, you must fax your rebuttal in writing by the response date on the Chargeback Notification. We will review your rebuttal to ensure compliance with the association rules and regulations.
   • If you do not contest the dispute, the chargeback automatically moves forward unchallenged and the chargeback funds will not be returned to you.

This document informs you that a debit has been made to your settlement account and gives you the option of accepting or contesting the adjustment. If contesting the adjustment, you will be required to respond by providing all specified information requested by the due date noted on the letter, using the Chargeback Response form. Note: The debit occurs upon receipt of the chargeback.

1. Always obtain an authorization for the exact amount of the transaction processed to the card.
2. Never alter a sales draft – a simple practice, but one that is very effective.
3. If you can't get a single authorization for the full amount of the sale, decline the card and request another form of payment.
4. If authorization is declined for the full amount of the sale, don't try to get an authorization another way, such as "splitting" or lowering the amount of the sale.
5. If you are unable to successfully swipe a card and you have to key-in a transaction, also manually imprint the card and make sure the signature and all transaction information is transferred to the imprinted draft. Make sure this manual draft includes your business name and location.
6. When a customer is due a credit and the original sale was made on a Visa^®, MasterCard^® or Diners Club^® card, process the credit back to the original card number. Do not refund by check or cash. If credit is due on more than one sale, process each credit individually.
7. Always compare the cardholder's signature to the signature on the back of the card. If the signature panel is blank, have the cardholder sign it. If the cardholder refuses, you should request another form of payment.
8. When responding to returned retrieval requests, provide valid documentation that is easy to read. After allowing Chase Paymentech two business days to process your response call the Help Desk at 1.800.265.5158 and choose the chargeback option to confirm receipt of your fax.
9. Pre-print your return policy on the credit card sales draft and make sure your customer signs it at the time of the original sale. Your refund policy must be close to the cardholder's signature in order to be recognized by Visa or MasterCard.
10. Be sure to compare the credit card account number on an electronically printed draft to the credit card number embossed on the credit card. If the numbers don't match, call your Automated Voice Authorization Center and tell the operator that you have a "Code 10" authorization and that the card numbers do not match.