Chargeback Representment

Chargeback Representment

Chargeback Representment

What is a Chargeback?

Chargeback is a mechanism by which a cardholder claims the merchant and calls the credit card issuer to dispute a transaction that had previously been credited. A cardholder may have various reasons to raise a dispute against the transaction like goods and services never supplied to the customer, defective merchandise received by a customer, refund not processed to the customer, merchant used the expired card and so on.
The Merchant needs to give an explanation about the amount debited from cardholder account.

What is Chargeback Representment?

Chargeback Representment is a term for providing Packet of Evidence as per Reason Codes to acquiring the bank or the Credit Card Company that shows that the transaction was made with full knowledge of the cardholder and also shows that cardholder agreed with all the Terms and Conditions which was displayed before buying the Product or Services. Chargeback also includes the information about Full Refund and Partial Refund issued to Cardholder.
When a Customer or Issuing Bank issues a chargeback, the merchant gets transaction information from acquiring a bank with given deadline to decide if the merchant is going to fight or not. If a merchant is ready to fight, he would have to provide all the information regarding the transaction in a single packet. Acquiring Bank will then send evidence to the Issuing Bank, where a team of experts will examine all the evidence and if the team gives a verdict in the merchant’s favor, the chargeback will be reversed and if the team is not satisfied with the submitted evidence, the particular amount is then deducted from the merchant’s account.
Tips on effective Chargeback Representment:

  • Spot the Reason Code and collect evidence according to it.
  • Collect all the evidence which was provided to the customer at the time of sale and arrange in a single packet.
  • Always highlight Important key proofs of order id, tracking number, customer’s email id, IP address, order confirmation etc.
  • Provide proof of Refund if Customer refunded before disputing the Chargeback.
  • Provide all evidence which was signed by Customer before buying the Services.

Issues that stop you from a perfect Chargeback Representment:

    • The important issue is time frame; Merchant should send all evidence before the deadline.
    • Provide all evidence according to the reason code, there is no chance for mistake.
    • Show all the agreement(s) signed by a customer in a proper manner.
    • Provide refund receipt as a Proof of Refund

    The merchant pays Real Cost of Chargeback:

  • If Merchant loses a Chargeback dispute, they not only end up losing transaction; they have to pay more than that. The real cost pay by the merchant is shown below, using the example of selling Laptop:
    Laptop Cost: $500.00
    Shipping Cost: $15.00
    Credit Card Fees: $13.50
    Customer Service Fees: $3.50
    Business Operating Fees: $5.00
    Total Cost: $537.00
    Chargeback Fees: $45.00
    Total Cost of Chargeback: $582.00

The Merchant end up paying much more than the original Transaction Amount and the Shipping Charge.

Payment Security for Merchant

Email us anytime!

Email customer service 24/7

Payment Security for Merchant

Call us anytime!

Reach customer care 24/7 at +1 (888) 622 – 6875

chargeback representment

Leave a Reply

Related Posts


Which one are better – Offline vs Online Payment Processing?
July 18th, 2018

Which one are better – Offline vs Online Payment Processing?

Offline vs Online Payment Processing - Most of the money tra

Read more

Tags


Accept Credit Card  Adult articles  Barber Shops  Beauty Products  Beauty Salons  Beauty Shops  Boating and marine  BOWLING ALLEYS  Business  Business & Economics  Card Brands  CBD Business  Chargeback Reduction  Chargeback Reduction  Chargebacks  Chargebacks  Chargebacks Fraud  Check Processing  collection agencies  considered high risk  Cosmetics & Personal Care  Countries  Courier Services  Credit card processors  Credit card processors  Credit Score  Cruises  Debt  Debt Collection  Dentists  Disputing Chargebacks  Doctor and Telemedicine  Document Preparation  Dry Cleaners  E-commerce  E-commerce  E-Commerce Tips  Echeck Processing  Electronic Payment System  Entrepreneurs  Escort Merchant Account  Florist  furniture  Furniture Merchant  furniture merchant account  furniture store  Gift Shops  Health & Beauty  Healthcare  High Risk Business  High Risk Business Merchant  High Risk Business Merchant  High risk industry  High Risk Merchants  Home Furnishings  Limited Liability Company  Liquor Stores  LLC Businesses  Marine business  Marine Services  Mastercard  Mastercard  MCC / SIC Code  MCC / SIC Code  Medical and Healthcare  Merchant Account  Merchant Account  Merchant Account Requirement  Merchant Account Tips  Merchant Agreement  Merchant Services  Merchant Statistics  Merchant Stronghold  Merchant types  Merchant Underwriting  Merchants USA  Natural Candy Store  NMI  Nutra Merchant Account  Nutra Merchants  Nutraceuticals  Office and commercial furniture  Offline and Online Furniture Retail  Online Business  Online Payment Services  Online Payment Services  Online Processing  Online Processing  Payment Gateway  Payment Gateway  Payment Gateway Integration  Payment processors  PCI  PCI Compliance  Personalized Card  Pharmacy  Pharmacy  Point of Sale Software  POS Systems  POS Terminals  Prepaid Cards  Retail Businesses  Retail Merchant Accounts  Retail Merchant Accounts  rich countries and poor countries  Sporting Goods  Successful Companies  Tailoring & Alterations Businesses  Timeshare Merchant Account  top companies  Transaction dispute  Transportation Service  Travel Agencies  Travel Agency  Travel Agency  Travel Agency & Reservations merchant accounts  travel agency merchant account  Underwriting guidelines  VISA  VISA  VX 520  Vеrifоnе VX520 POS