A
chargeback occurs anytime a cardholder (customer) calls the credit
card issuer instead of the merchant to dispute a transaction, saying
they never received the goods or services, goods and services never
supplied to the customer, defective merchandise received by customer,
refund not processed to customer, merchant used expired card and so
on.
The
Merchant needs to give explanation about the amount debited from
cardholder account.
Chargeback
Representment is a term for providing Packet of Evidence as per
Reason Codes to acquiring 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.
Representment also includes the information if there is any
Refund/Partial Refund issued to Cardholder.
Tips
on effective Chargeback Representment:
Spot
the Reason Code and collect evidence according to it.
Collect
all the evidence which was provided to customer at the time of sale
and arrange in asingle packet.
Always
highlight Important key proofs like: 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:
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 customer in a proper manner.
Provide refund receipt as a Proof of Refund
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
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.
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