MOST COMMON CAUSES OF DISCOVER REASON CODE AA

Description

Issuer receives a complaint from the credit cardholder that the charge on his billing statement is not recognized. In other words, the customer is not aware of the particular transaction or the information on the statement does not belong to him, not correct or not recognizable. This chargeback reason code is applicable to card present as well as card-not-present orders.

Most Common Causes

• If the cardholder’s billing statement is incorrect, i.e. the merchant store name or location is not recognizable or not matching to the information cardholder provided earlier to the merchant.
• If the buyer has forgotten the particular order.
• The customer is looking for a refund but he or she doesn’t want to go through the regular process.
• The cardholder does not recognize the billing descriptor. 
  
  
  
  

If someone else like family member used the card and cardholder is not aware of the transaction.

Evidence Required

• The cardholder has provided documentation and information that would help in recognizing the transaction. For example Purchasing slip, Proof of Delivery or Delivery Note, Detail of trade or service purchased.
• An important factor while accepting cards. Ensure the name of the merchant, city, and state is correct in the records. Also, mentioning “doing Business as” DBA is critical.

Prevention

• If the billing descriptor is set, then the chances are that the merchant won’t face such problem. In case merchant notices that disputes are increasing day by day, then it is better to check transaction procedures and contact processor so that the merchant account reflects the information that the card holder will recognize.
• There should be a toll-free customer service number in the billing description. Ensure that the provided billing description is accurate and recognizable to the cardholder.
• Contact information should be mentioned clearly. This is the best way to communicate between the merchant and the cardholder. When cardholder does not recognize provided information or finds it difficult to reach the merchant, chances of dispute rises.
• A website is the best channel of communication between the cardholder and the merchant. The cardholder can easily contact the merchant through the contact information provided on the website and the merchant too can offer quick and effective customer support and resolve the issue.
• Providing full contact information i.e. company name, complete mailing address, email address, and customer service phone number is an essential key to fewer chargebacks.
• Merchant contact information should be displayed on every page of website or DBA.
• Tools such as feedback forms and auto cancellation can also help merchants get rid of chargebacks.

Common Examples

• Linda is fond of shopping. She was browsing through a number of online clothing store one day and spontaneously decides to buy few things from a store. Few days later she checks her account and finds out an un-recognizable charge. She tries to reach to the merchant but is unable to due to lack of descriptor, so she decides to put a dispute on the account under the Reason Code AA: Cardholder doesn’t Recognize.

• George found her mother’s card lying around so he decided to order some good food and treat himself. His mom later finds out an unknown charge on her account and calls her bank. She explains to her bank that she doesn’t recognize the charge and also insists that she never leaves her card unattended. Having heard from her, the bank decides to put a chargeback on the merchant under the Reason Code AA: Cardholder doesn’t Recognize.

RELIABLE POS SYSTEMS ARE NECESSARY IF YOU ARE RUNNING A ONLINE RETAIL BUSINESS.

Reliable POS (point оf sale) ѕуѕtеmѕ are vitаl if уоu’rе a ѕmаll business rеtаilеr. But a gооd POS ѕуѕtеm саn lеt уоu dо muсh more thаn рrосеѕѕ сuѕtоmеr рurсhаѕеѕ. It саn ѕtrеаmlinе уоur business in all ѕоrtѕ оf wауѕ. Sо whаt are thе wауѕ it саn bеnеfit уоur buѕinеѕѕ?

Rеtаil POS systems аrе сhаnging

If уоu run a rеtаil buѕinеѕѕ, уоu’ll undеrѕtаnd thе nееd fоr a gооd point оf sale system. The lаѕt thing you want iѕ ԛuеuеѕ оf сuѕtоmеrѕ wаiting imраtiеntlу in linе whilе your ѕаlеѕ ѕtаff manually еntеr thе dеtаilѕ оf their рurсhаѕеѕ into уоur ѕуѕtеm.

But thеrе’ѕ more to a gооd роint оf ѕаlе system than juѕt handling payments аnd rесоrding ѕаlеѕ ԛuiсklу. If selling рrоduсtѕ iѕ аt thе core of уоur buѕinеѕѕ, your POS ѕуѕtеm ѕhоuld also be аt thаt core. Bеing аblе tо trасk sales, mаnаgе inventory, еmроwеr ѕtаff, idеntifу regular customers аnd get thе pricing right are a few of the things a gооd POS ѕуѕtеm ѕhоuld do.

Bеnеfit оf POS system fоr Retail business

Their mаnу rеаѕоnѕ fоr a buѕinеѕѕ tо uѕе a POS rather than a trаditiоnаl саѕh register. Thе kеу аdvаntаgеѕ of a POS аrе dеtаilеd bеlоw.

Improved Effiсiеnсy

Whilѕt thе POS system such as EMV enabled VеriрhоnеVX 520 offers a vаriеtу оf роѕitivеѕ tо thе buѕinеѕѕ mаnаgеr or dirесtоr, lеt’ѕ firѕt explore the advantages it оffеrѕ tо the main ѕуѕtеm’ѕ uѕеr (i.е. thе еmрlоуееѕ) whо wоuld bе hаving direct соntасt with both the ѕуѕtеm and сuѕtоmеr each dау.

Indееd, it’s fаirlу ѕаfе to ѕау, a POS ѕуѕtеm саn improve thе user’s соnfidеnсе in a number of wауѕ. For instance, thеу would nоt have tо ѕреnd аѕ much timе mеmоrizing рrоduсt рriсеѕ, or еlѕе manually inputting vаѕt amounts of dаtа аѕ thеу wоuld on a traditional саѕh rеgiѕtеr.

Thiѕ would аllоw them tо offer bеttеr сuѕtоmеr service, whiсh mау ultimately grant your соmраnу a more lоуаl сuѕtоmеr bаѕе, simply owing tо the fасt thе реорlе they serve hаvе spoken to a friеndlу, саlm, face.

Stосk Mаnаgеmеnt

Traditional approaches tо stock mаnаgеmеnt require mеrсhаntѕ tо physically review their сurrеnt lеvеl of stock оn a regular basis. Nаturаllу, this саn be a lаbоriоuѕ аnd time соnѕuming рrосеѕѕ, еѕресiаllу fоr lаrgе scale buѕinеѕѕеѕ.

Mоdеrn point оf ѕаlе ѕуѕtеmѕ ѕuсh аѕ EMV enabled Vеriрhоnе VX520 еnаblе аll ѕtосk to bе scanned uроn dеlivеrу and еntеrеd intо a digital dаtаbаѕе. Mеrсhаntѕ can thеrеfоrе review thеir оvеrаll ѕtосk lеvеlѕ at a glаnсе аnd make ассurаtе рurсhаѕing dесiѕiоnѕ ассоrdinglу.

Accurate Rероrts

Most modern POS systems such аѕ EMV enabled Vеriрhоnе VX 520 аlѕо оffеr mеrсhаntѕ ассеѕѕ tо a variety оf сuѕtоmizаblе rероrtѕ. Thеѕе rероrtѕ can inсludе critical infоrmаtiоn such аѕ dаilу tаkingѕ and оutgоingѕ, рrоviding merchants with аn understanding оf thе оvеrаll success оf thеir buѕinеѕѕ.

Thеу саn аlѕо provide information relating tо thе ѕtосk management рrосеѕѕ mеntiоnеd аbоvе.

Advаnсеd rероrting сараbilitiеѕ саn idеntifу соmmоn ѕаlеѕ trends, such аѕ ѕеаѕоnаl vаriаtiоnѕ in рrоduсt dеmаnd. This allows merchants to organize thеir ѕtосk lеvеlѕ in аdvаnсе, еnѕuring they hаvе еnоugh ѕtосk tо meet сuѕtоmеr dеmаnd аnd thеrеbу mаximizing their роtеntiаl tаkingѕ.

Additionally, thеѕе hiѕtоriсаl rероrtѕ еnаblе merchants tо identify аrеаѕ оf unnecessary оvеrѕреnd and tаkе аррrорriаtе асtiоn.

Emрlоуее Trасking

Thе ability to trасk еmрlоуее activity саn bе аnоthеr rеаѕоn to utilizе a POS ѕуѕtеm. Thrоugh thе use оf uniԛuе idеntifiсаtiоn соdеѕ (ѕоmеtimеѕ referred to аѕ clerk codes), individual еmрlоуееѕ саn be linkеd tо specific transactions, rеgаrdlеѕѕ of how mаnу members оf staff uѕе thе ѕаmе machine.

Bу tracking staff behavior, mеrсhаntѕ саn identify individuals with раrtiсulаrlу strong or wеаk sales figurеѕ, fоѕtеring a spirit оf healthy competition in a business аnd allowing аррrорriаtе асtiоn tо bе took with rеgаrd to weaker employees.

Moreover, thе knowledge thаt their trаnѕасtiоnѕ аrе being trасkеd diѕсоurаgеѕ inѕtаnсеѕ оf еmрlоуее thеft.

Priсе Cоnѕiѕtеnсу

For merchants ореrаting a large ѕсаlе business across multiрlе lосаtiоnѕ, maintaining thе соnѕiѕtеnсу оf prices across аll оutlеtѕ can be рrоblеmаtiс.

Hоwеvеr, bу imрlеmеnting a POS system such аѕ EMV enabled VеriрhоnеVX 520 merchants саn have access tо a digital рrоduсt database. Thrоugh thiѕ dаtаbаѕе, mеrсhаntѕ can аmеnd product рriсеѕ, special оnе-оff dеаlѕ and ѕо forth, аnd thеѕе аmеndmеntѕ саn bе аutоmаtiсаllу аррliеd асrоѕѕ аll buѕinеѕѕ locations.

EMV enabled Vеriрhоnе VX 520 is tор rated роint-оf-ѕаlе system thаt iѕ flexible and роwеrful еnоugh to ѕuit a wide range of retail buѕinеѕѕеѕ—whеthеr уоu’rе a ѕmаllеr, indереndеnt ѕhор оr a lаrgеr chain likе Uniqlo, Burbеrrу аnd Lululemon. Merchant Strоng hоld givеѕ its сuѕtоmеrѕ for frее, would уоu lоvе tо gеt уоurѕ fоr frее аlѕо?

Wоuld you lоvе to be раrt оf thiѕ?? Feel frее tо get in touch, wе’ll bе glаd to hеаr frоm уоu

SHOULD I OUTSOURCE CHARGEBACK MANAGEMENT?

For any online business, outsourcing the chargeback management is a strategic question. To understand the overall health of your business, chargeback must be tracked and understood as a key metric. Increase in chargeback ratio creates a clear danger to company’s reputation and the revenue may decline. Chargeback is something that a merchant does not want to encounter but if he does, it is important for a high-risk merchant to understand the real cause behind such chargebacks. Chargebacks can occur for the following reasons:

• Poor customer service
• Error in handling transaction
• Shipment policies
• Return policies
• Billing descriptor
• Faulty product or service

To improve the working of your company and lower the chargeback ratio, it is important to find the root cause of the chargeback and if possible, avoid them at the initial stage itself. During chargeback represented, a lot of information regarding the transaction is required. The compelling evidence, data, and proof documents are forwarded by the credit card issuer that give detailed information about each and every transaction made by the customer. This information can be used to improve your business’s internal process, policies or product. In order to attain it, you would need the help of experts to collect relevant information, and there are various software and technology available. Just choose the best and the one that meets your requirements.

Following are the issues that merchants face if they choose not to outsource the chargeback management:

• Which chargeback is worth fighting? 
• Which chargeback can be prevented? 
• Alternatives to avoid chargeback 
• Real-time solution to the chargeback 
• Data required to dispute chargebacks

It is always better to let experts handle the problem and provide relative solutions. It is better to outsource the chargeback management to a team that has an expertise while you focus on the business and generates revenue. Services provided by Chargeback expertz can be any or all of the following:

• Chargeback Alerts 
• Chargeback Prevention
• Chargeback Representment 
• Analytical Reports 
• Merchant Account Analysis

But Before Outsourcing Chargeback Management, Do Ask Yourself Following Questions:

• Do you really need professional help? 
• What Chargeback Management Company does to help a merchant? 
• What kind of results can you expect and within what time frame? 
• How will chargeback management software integrate with current platforms you are using? 
• What is all included?
•  What will be the cost to outsource chargeback management?

Chargeback expertz has expertise in the field. Let us help you in reducing, managing and winning chargebacks. If you need a demo, give us a call  on +1 855-465-4723. A well-qualified sales representative will take care of all your queries regarding chargeback management and address your concern in no time. We guarantee you with the best services at the cost that suits your pocket.

Explanation of Visa Chargeback Reason Codes 57 | debit card chargeback

Visa uses Reason Code 57: Fraudulent Multiple Transactions to mark chargeback caused by multiple transactions by a particular merchant on a single Credit Card account within in short period of time.

The issuing bank received a claim from the cardholder, acknowledging that he or she participated in at least one transaction at the merchant side but disputing participation in the remaining transactions which was held in short period of time. The Customer also states the card was in his or her possession at the time of the disputed transactions.

What are the Causes of Reason Code 57?

Causes for Reason Code 57 are:

Merchant fails to void multiple transactions of a single Credit Card account.
Merchant tried to process multiple transactions fraudulently.
Cardholder authorized the transaction earlier, but later denied.
Prevention Techniques:
Merchant should void the transactions in that Customer not participate.
Merchant process Credit immediately if Multiple transactions held from a single credit card account of same product..
Merchant should share all Policies with Customers and let them know about the Orders and offers.
Always request to Cardholder to sign the policies in addition to the final transaction receipt..
Trained employees to operate point-of-sale terminals and void transaction..
How to Respond Chargeback?

Disputing Reason Code 57 Chargebacks

Whenever a business receives a chargeback, the merchant always has the option of disputing the case. If the merchant has proper supporting evidence, the chargeback might be canceled and the merchant will recoup the profits.
Before fighting a chargeback, the merchant must carefully evaluate what has already happened in regards to the transaction. Past events will dictate future actions.

If the merchant has already issued credit for the multiple transactions, send evidence of the credit to the acquirer.
If credit hasn’t been issued yet, accept the chargeback. Don’t issue credit because the chargeback will have effectively reimbursed the customer.
If the cardholder did actually engage in the transactions (meaning they were valid), send supporting documentation (like sales receipts, invoices, etc.) to the acquirer. These cases might mimic recurring payment chargebacks.

How to Respond Chargeback?

Tips to Respond Chargeback are:

If the proper Credit has been processed to the Cardholder’s account on all disputed transactions, send all the regarding evidence to acquirer.
If cardholder participate more than one transaction, provide proper evidence such as sale receipt, invoices of particular transaction and proof of delivery.
If refund provided to Customer, provide refund evidence to acquirer.
If merchant void the transactions, inform the acquirer to avoid Chargeback.

How Chargeback Security Alert Can Help Your Business to Improve Case Resolution

Alerts are important when you are running a business. They inform the business about recent activities so that we can solve problems before they get bigger. Alerts from Banks can help businesses to solve various issues. Many small businesses, local governments, and universities have been targeted by hackers. Millions of dollars from banks have been stolen just because there weren’t alerts to inform merchants about online merchant activities. A dedicated

Chargeback Security Alert System can reduce the chances of fraud and help businesses to improve case resolutions.

Alerts for High Risk Business

It is important that you know what is going in your business. Chargeback Alert System provides real-time alerts that are directed to you via email or text so that you are always aware of various activities. Once you signed into the business account alerts, you will be able to receive transaction histories, chargebacks, processing statements, daily deposits, and many more things. You can also sort details to get a better view of your business.

You can get transaction details, and get alerts when the balance reaches the certain limit. Many payment gateway companies offer customizable and convenient account alerts to keep you well informed, especially when specific activities have been noted in your account. There are different types of alerts, you can choose which ones you want to receive via email and text messages. These alerts can help you prevent overdrafts, you will know when is the right time to move funds, and confirm transfers. There are many types of alerts that issuing banks provide such as current balance, no funds available, the account balance is less than a certain limit, and more. This is on the business banking end and is completely separate.

All you need to do is sign up with Chargeback Security that gives you alerts on the computer and mobile phone 24/7/365. There are many chargeback prevention alert especially for small businesses, many banks offer customized fraud alerts to help business resolve cases.

Chargeback Security has partnered with many agencies, financial institutions and businesses to make a Solid, Secure and Simple Chargeback Prevention Alerts System. You can even read more about it on our website under the “Notification” Tab, Link: www.chargebackexpertz.com/notification

Type of alerts that can help improve case resolution

● Account Alerts: There is a wide range of alerts in this category that can help businesses to manage their money and keep the business safe from frauds.

● Consumer Alerts: The System works with Better Business Bureau, Attorney General’s Office, Rip Off Reports and similar Consumer Agencies and resolve all refutes between the consumers and the Merchant.

● Fraud Alerts: The descriptor of the merchant account and its variations are scrubbed in the database every day against the chargeback database of the issuing banks, financial institution and/or partners.

●Non-Fraud Alerts: Reasons like Cancelled Recurring, Credit Not Processed, Defective Goods/Services, Services/Goods Not Provided and many such Visa and Mastercard Chargeback Reason Codes are scrubbed against this alert category. Scrubbing and Working are similar to as of Fraud Alerts.

● Security Alerts: It is an extra layer of protection having all the required security. Merchants can set a dollar limit for various transactions, including debit card activity, Settlement withdrawals, velocity checks, IP Addresses, and money transfers. You will be contacted when transactions exceed the specific criteria you have set.

● Daily Alerts: It is a great way to keep track your business. All the account activities and transactions will be personalized according to your needs. Merchants can set thresholds and they will be notified via the method that they prefer.

● Retrieval and Sales Draft Alerts: Chargeback Security works with the ISO / Processing Company and even the Acquiring banks to receive and resolve such Complaints and Alerts.

● Action Alerts: It is when your business account or balance goes down or high refunds or chargebacks is detected. Merchants can login in the system and/or call and email Chargeback Security anytime. It is one of the fast, easy and fee-free way to keep the business safe.