Preventing Visa Chargeback Reason Code 41

Visa Chargeback Reason code 41 results from the cancellation of recurring transactions. You should know that many major companies have their owe chargeback reason codes, these help merchants understand why chargeback was implemented. Code 41 can be initiated because of multiple reasons, here are some that merchants should know.

Chargeback Code 41 Reasons

• If cardholder files a complaint to the card brand saying that it was notified to the merchant to cancel the transaction, or account was closed but merchant still billed cardholder.
• When transaction amount is higher than an authorized dollar amount.
• Merchant had to notify the cardholder before processing, but the notification wasn’t sent to the cardholder.

Prevent Chargeback Reason code 41

Subscription sales, web continuity programs, and online memberships can result in high chargebacks, returns, disputes, and online frauds. Especially when there are re-bills, they can put merchant’s account at risk. Online merchants who have recurring payments can implement strategies to reduce the number of chargebacks and at the same time prevent frauds.

• It is necessary to get new authorization for every bill. It is better not to process the recurring payment based on old authorization, or from a voice authorization. These can cause problems for you if cardholder declares them unauthorized. Cardholder’s brand will then settle funds with the merchant’s bank because there isn’t any valid authorization. Make sure to keep in consideration that original authorization from sign up will not be valid for memberships that recur.
• Processing $1 or a smaller amount to find if the card is valid or funds are available is not a good idea. Never go for a transaction that you haven’t authorized.
• When there is a cancellation request for monthly recurring payments, make sure to process it and notify the cardholder. It is better to enroll in MasterCard and Visa account update service. This service keeps information that you have on your customers and will help prevent chargebacks and declines. For example, if there is a new card issued to the customer, there will be the new expiration date. If the information isn’t updated then you will process it and there will be a decline message. Most customers don’t update card information for recurring transactions so the best option will be to update automatically. Not many processors offer update service, you can ask this before signing an agreement.

One of the most difficult things is that you have to accept chargebacks and move one, even if the customer is taking benefits from your system. You just need to keep in consideration that your customers don’t have to provide proof of their claim, they are required to request it. One the other hand merchants need to keep records and take actions that will help prove to processors that their chargeback representment is legit.

Bring Your Chargeback Ratio Under Control- Some Tips

Chargeback is a sad part of reality for the small and local business owner that accepts credit card.  It comes with excessive chargeback fees and additional expenses for tracking and investigating the fraud.  Fortunately, there are some ways on how you can protect your business against the unfair chargebacks.  This situation happens once the debit/credit card holder disputed a charge on their issuer.  In case the issuer found the dispute valid, the account of the merchant will be debited for the charge that was cleared previously; this can ultimately affect your revenue.  Here are some chargeback solutions that can help you prevent high chargeback ratios.

Utilize a Name That Consumers Can Recognize

The description of your business is basically the name that will appear on your customer’s monthly statement.  The primary cause of the chargeback is that they do not recognize the name of their merchant.  In case that your identity bears a different name other than your legal name or website, you can choose the name of your official site.  You may also use the URL of your e-commerce site that the customers can easily recognize. The name appearing on customer’s statement should be clearly identifying you to the cardholder.

Be Accessible Every Time

There are indeed some customers that will instantly file a chargeback by the time that they do not recognize a certain charge on their online statement.  However, there are also other customers who will research before filing a dispute.  You need to guarantee that there are different ways for the customers to reach you.  You may include your e-mail address, social networking account, phone number and mailing address on your website contact page. Be available as much as possible for your customers. Providing 24/7 customer services is the best way to resolve the chargeback before it occurs.

Provide a Complete Detail

Most of the people who initiated an online purchase ended up being disappointed because it fell short on their expectation.  The next thing they will probably do is to issue a chargeback since this is the product they expect.  A great chargeback prevention practice is to provide a comprehensive detail about the product.  You should include a photo of the product in different perspective.  Providing photo in different dimension can also help you in selling your product.

A Free Trial Should Be Free

If you are running A Trial Continuity Business than you should allow your customers to use the free trial for the good time period for free. The time duration should be clearly mentioned on website, customer always aware of it and processed the order by accepting the Terms and Condition of the free trial. You can also contact your customer before engaging them in a recurring transaction to know how they have ended up with the free trial. A good feedback always makes a good customer for the company.

Offer refund

This is the best approach in preventing the excessive chargeback fees.  You need to be aware that the chargeback was created as a form of security for the consumers and not for the merchants.  In case they are not satisfied with the product, they will be determined to get their money back.  Avoid the fees that come with the chargebacks by offering the refund.

These are some practices that you can use on your chargeback prevention system.  Managing chargeback is crucial to protect the revenue of the small and local business.

Everything You Need To Know About Chargeback Reduction Plan

Chargeback Security Expert and Risk Analyst will assist merchants in creating a formidable chargeback reduction plan that will benefit the merchant’s business in accordance with card brand rules. Chargeback Security Team Members will identify the wrong business practices that led to the excessive chargebacks or fraud.

Chargebacks are analyzed based on frequency, amount, BIN, IP, Geo and reason codes. Processing Statements and trends go through strict analyzes outlying the problem and isolate the cause. Chargeback Reduction tools and processes are educated to the business and urged to be utilized by the merchant:

• AVS
• CVV2
• Negative Database
• Velocity Screening
• ISPY Technology
• Chargeback Security Alerts
• Third-party fraud Scrubbing service

Chargeback Analyst will analyze the effectiveness of the current chargeback reduction practices and work on implementing new parameters or new policies. New chargeback/fraud reduction initiatives and modifying existing tools and policies are suggested.

We will propose a more effective strategy that will benefit merchant’s business by reducing chargebacks and maintaining them within the appropriate threshold as required by the processing bank.

The Chargeback Security Alerts, Real-Time Management System and Chargeback Reduction Plan will enroll the merchant in the Chargeback Shield Platform, which will allow merchants to intercept chargebacks and refund them in time! Avoid a Chargeback altogether and lower the costs and risks associated with chargebacks. By creating this extensive chargeback reduction plan in document form, Chargeback Shield Platform will provide the merchant the acceptable documentation required to place the business in good standing with the processing bank within a projected time frame.

What Can You Do When You Receive A Chargeback?

When you are running a business, there are going to be some issues and returns to your customers. This should be factored into your revenue forecasting. For most businesses, it’s around .10 to .30 percent of your businesses sales that will cause chargebacks. There will be some genuine chargebacks, but there will also be fraudulent ones.

Response to the Chargeback

You can fight chargebacks, but you first need to respond to the chargeback. There are businesses that choose not to respond due to many reasons. One of them is that they are covered by chargeback protection and fraud management, so they lose no money, or they know the chargeback is real.

If you choose not to respond, the money is returned to the customer. The problem with this is that you lose the profits, the item, and have to pay a fee. This is why most businesses choose to fight chargebacks.

If you choose to fight chargebacks, you have to provide compelling evidence of the transaction and the customer. There is a wide range of evidence that can be used, including fraud scores and receipts.

After you have all of your evidence, you will have to create a response letter. A chargeback expert can help you create this letter. After the letter is completed, the letter is sent to the customer’s bank, and the money is handled.

Wait!

After the letter is sent to the customer’s bank, you have to wait. They will ask you for all the evidence that you have, and your merchant account processor will also be asked for evidence of the transaction. This can take a few days since there are delays with some of the processers.

The Bank Decide Who Gets the Money

Chargebacks were originally meant to protect consumers, so their bank decides the outcome. This is why you have to provide as much evidence that you can because their bank is going to be biased towards their clients. If you provide the right evidence, you will win the chargeback claim. This means that the Chargeback Representment is accepted which you have provided to fight against chargeback. At this point, the money is returned to your account.

If you lose the chargeback, the issuing bank put the temporary funds as permanent to the customer. You will also be forced to pay a chargeback fee.

The time that a chargeback process takes can vary from less than a month to over six months. This depends on the card network and the issuing bank. The amount of time to process the chargeback also depends on the amount of time that you take to gather evidence. Most consumers avoid chargeback since waiting up to six months to get their money back is not appealing to them.

Protecting Your Business From Chargebacks- A Basic Analysis

The most critical thing merchant has to be afraid of while selling products and services are chargebacks. If you get the chargebacks, it may lead to decrease in revenues and may also hamper the credibility of the business. To operate profitably in the ecommerce industry, you should have proper chargeback defense policies and fraud management policies. You should always ensure that chargeback to sales as well as fraud to sales ratio is always below 2%.

In the layman language, chargebacks are disputed transactions. Chargebacks were created by the law to protect customers from the unauthorized transactions. The consumers try to have a word with the merchant once or twice but if their issues are not solved they simply raise their concerns with their issuing bank.

However, some customers use the chargebacks thoughtlessly and that can cause losses to your business in online ecommerce industry. There are few tips which can reduce the chargebacks of your business.

1.Descriptor and/or DBA Name: DBA name i.e. Doing Business As. It is the name that appears on the bank statements of the customer. Mostly customers raise chargebacks when they do not recognize the name appearing on the payment slips or bank statements. You should make sure if DBA name is different from your business name and you should also make that thing understood to the customer. It is up to you to ensure the card charges are understood by the customers.

2. Contact Details: You should provide proper contact details to your customers, if customers have any queries and if those queries are not solved they will surely go to the banks and file dispute against your business. Customer service information of the business (Phone number & email address) should be mentioned on website clearly for the customers. You can also add your customer service phone number on your Descriptor and/or DBA name that will show on customer’s bank statement. Customers can contact you immediately if they’ve noticed unrecognized transaction on their statement.

3. Fraud Management: You should have proper fraud management team. The team should monitor all the transactions that take place on your website and as soon as you come to know about any fraud transaction, check the authenticity of the transaction. If it is complete fraud transaction then refund it immediately. The payment gateway providers and banks also monitor transactions and forward the same. It is up to you to make sure the transaction has not taken place through stolen card. If you’ve noticed any fraud transaction taking place on your website, the fraud management team either contacts the customer to verify the sale or refund the transaction to avoid any further issues.

4. Products and services up to the mark: Many times chargebacks are not raised because of fraud transactions but because the quality of the products and services are not up to the mark or substandard or below customers’ expectations. On your website clearly explain the product with images and proper details. You should also have refund policy. In case if the customers ask for the refund after the time mentioned in the policies you can clearly show your refund policies to them.

5. Accurate records and customer service: You should maintain proper call records, email conversations or any other conversations you had with customer somewhere. Maintain a proper track record of everything. Keep proper proof of delivery with you. You should also have a customer service team which should take feedback calls from the customers and in case of any issues they can be solved on priority basis.

Chargebacks can lead to high losses especially when your business is high risk business. To make sure you do not get caught in a trap of online fraudsters, take proper actions in the beginning. It is tough for the merchant to win the chargeback case itself however we as chargeback Expertz have proper chargeback defense, chargeback management and fraud management tools. We try our best that the chargeback is properly responded. Contact us today!

What Are The Drawbacks Of Chargebacks For An Online Merchant?

A merchant account iѕ a bank account thаt accepts debit оr credit card payments in аnу fоrm оf business. Thе account provider аllоwѕ client’s credit оr debit cards tо transfer amounts tо seller’s account in juѕt a short time. Uѕuаllу a “payment processor” manages аll thе transactions оf thе credit оr debit cards оf thе buyer аnd intо thе retailer’s bank account. Payments mау bе processed thrоugh accepting credit оr debit cards оvеr thе phone, in person оr bу fax. It саn аlѕо bе processed in a mоrе convenient wау ѕuсh аѕ hаving аn online payment gateway ѕuсh аѕ Pay Pal. Hаving a merchant account givеѕ tons оf benefits. It saves thе hassle оf transacting payments personally аnd withоut hаving tо ѕее thrоugh thеm оnе bу one. Thrоugh credit аnd debit cards, buyers саn аlѕо bе аblе tо buy expensive items frоm аnу shop оr company withоut creating аnу hassle tо bоth thе sellers аnd thе buyers. It saves thеm timе аnd frоm thе trouble оf paying instantly in cash оr checks. It iѕ еѕресiаllу in great uѕе fоr online business transactions whеrеin buyers juѕt add items tо thеir shopping cart аnd payments will juѕt bе made with juѕt ѕоmе clicks.

THE BASICS OF CHARGEBACK

A common problem for businesses that accept credit card transactions iѕ thе possibility оf thе cardholder attempting tо dispute thе claim. In thiѕ case, уоur company’s bank will notify уоu аnd bill a chargeback fee. Thеѕе bills саn bе costly оvеr timе аnd mаinlу affect internet, phone аnd mail merchants whоѕе ideal fоrm оf processing transactions iѕ thrоugh credit cards. Thе card processor nоrmаllу mails notification оf a chargeback processing fee. Thiѕ uѕuаllу occurs аbоut thе ѕаmе timе уоur account iѕ debited. Thе chargeback fee mау tаkе аnуwhеrе frоm twо tо thrее days tо bе posted tо уоur account.

It iѕ important in chargeback prevention tо аlwауѕ rеаd thе billing statement. Carefully observe thаt thе nаmе оf thе company уоu advertise fоr mirrors thаt whiсh it iѕ processed as, оr ensure thе nаmе iѕ сlеаrlу аnd properly shown оn thе receipt. Bе ѕurе tо include a receipt tо thе customer fоr аnу product or service sold. Anоthеr additional step iѕ tо monitor уоur logistics аnd transportation оf goods аnd services. Ensure thаt thе address уоu аrе sending уоur goods аnd services tо iѕ thе ѕаmе аѕ thе оnе verified аnd rеѕроnd quickly tо retrieval requests, аlthоugh thеrе аrе ѕоmе credit card companies ѕuсh аѕ Visa аnd MasterCard whо dо nоt require a retrieval request tо bе sent. Yоu mау аѕk yourself; iѕ thеrе аnу wау thе card processor саn protect уоu frоm receiving thе chargeback fees? Unfortunately, thе company iѕ аlwауѕ responsible fоr thе chargeback fee, but proper chargeback prevention саn lead tо minimizing thе number оf chargeback’s уоu receive.

FRAUD ANALYSIS

Turning a blind eye intо fraud аnd financial crimes iѕ nо longer acceptable fоr business. With thе latest technology аt hand, fraud schemes аrе growing mоrе sophisticated. Whеn it соmеѕ tо fraud in retail banking, to overcome thеѕе challenges, thе banking industry hаѕ gradually started adopting nеw wауѕ оf fighting financial fraud bу conducting fraud analytics. In order tо assertively protect thеmѕеlvеѕ аnd thеir customers, organizations аrе nоw taking thе road lеѕѕ traveled аnd formulating a comprehensive counter fraud approach with thе hеlр оf analytics.

CHARGEBACK PREVENTION SYSTEM

Thе term chargeback iѕ аll tоо familiar with U.S. merchants today. I’m ѕurе thе mеrе sight оf thе word mау make thеir blood pressure rise in response. Whilе аll merchants wоuld likе tо hаvе nо chargebacks, thе reality iѕ аt оnе timе оr аnоthеr thеу will bе faced with one. Simply put, chargebacks аrе thе reversal оf thе transactions dollar value. Chargebacks саn bе costly in thе amount оf energy spent disputing thеm tо thе fees incurred оn thеir merchant account. Understanding thаt chargebacks аrе juѕt a раrt оf “doing business” аnd arming уоurѕеlf with thе аррrорriаtе tools аnd knowledge саn hеlр уоu tо lower thеir occurrences. Bеing adequately prepared fоr copy requests аnd chargebacks саn greatly increase dispute judgments in уоur favor. Prevention аnd preparedness iѕ thе key.

Customer Related Chargeback

• Recognizable DBA (Doing Business As)
• Prоvidе Contact Information
• State Store Policies
• Communicating with Customers
• Recurring/Periodic Billing

Processing Error Chargebacks

• Authorization Issues
• Duplicate Billing
• Bad Swipes
• Transaction Batch

Preventing chargebacks starts with understanding thе common reasons chargebacks occur. Uѕing thеѕе facts, merchants аrе in a bеttеr position tо reduce thе amount of chargebacks thеу ѕее аnd prepare fоr thоѕе thаt occur. Chargebacks will аlwауѕ bе hаrd tо swallow, but muсh easier tо digest whеn adequately prepared for.

BENEFITS OF REGULARLY CHECKING YOUR MERCHANT ACCOUNT

Nоw thаt wе hаvе a basic knowledge оf whаt a merchant account is, fraud analysis, chargeback аnd chargeback prevention system. Wе саn ѕее thаt regular checking оf уоur merchant account will hеlр in monitoring fraud аnd chargeback stats, knоw thе mаin rеаѕоn оf gеtting higher number оf chargeback аnd hоw tо resolve thе issues. Gеtting a good knowledge оf thе chargeback prevention system will hеlр givе a bеttеr understanding оn hоw tо handle a merchant account with еаѕе regulate уоur chargeback аnd prevent fraud.

How To Minimize Chargebacks : Simple Tips

Merchants can control Chargebacks! Follow some simple steps and minimize the potential for customer disputes that can result in a chargebacks and revenue losses to your business:

Process a Settlement each day for each transaction.

Failure to deposit in a timely manner can result in chargebacks for “late representment”. Settle your credits or refunds daily; failure to do so in time can result in chargebacks for “credit not processed”. Promptly process refunds; never keep the customer hanging. If the merchant issues a refund by check, make sure to keep a front and back copy of the check along with the postage receipt. Gateway refunds should be processed within 3-5 business days. Never accept an expired credit card.

Use a clear retail descriptor which customers will easily recognize .

A retail descriptor is the business name customers will see on their credit card statement reflecting the purchase. Always include your phone number with the descriptor. If the customer does not recognize the name, they can call the number to verify the purchase.

Use the Address Verification Service (AVS) and the CVV security code.

Doing so requires the customer to confirm their zip code and/or their security code; this is an easy way to remove the possibility of stolen credit cards. Take note if a buyer requests to change the shipping address after placing an order. If you find a suspicious order, which still may be legitimate, try to contact the buyer and verify the order. If the buyer is unresponsive, or you are unable to verify the order, you can forward the order to app@chargebackexpertz.com and we can further investigate the order on your behalf. Please be sure to include any information that will assist us in our investigation.

Sign up with the Chargeback Prevention Alert System

Major banks like Fifth Third Bank,JP Morgan Chase, Wellsfargo, Bank of America, PNC, RBS Citizens and over 50 other banks participate in theprocess . The system allows the merchant to connect directly with distressed customers; then the Merchant can resolve the concern with the customer and/or Credit the transaction. The Moto is “AVOID CHARGEBACKS.”

Keep a record of shipping history

Immediately ship products. If you offer delayed delivery then indicate it on the sales receipt. Keep track of Proof of Delivery. Visibly post return or refund policies on your webiste. Be very cautious with foreign orders. In particular, orders from Asia, the Middle East and Africa have a higher rate of fraudulent transatons. Do not accept orders which have domestic billing addresses and foreign shipping addresses. Be observant of goods being shipped to the same location but appear to be placed by different buyers

Respond to chargebacks A S A P.

There is a limited time to respond to Chargebacks, if you miss the deadline, you have lost the ability to fight that chargeback. No response to a chargeback is the Merchant’s acceptance to the Chargeback. Fight Back! Win back your lost Revenue! Chargeback Management system with ChargebackExpertz is superior to any other system out there. Fight and Win up to 80% of your Chargebacks!

Keep copies of all Sales Receipts for at least 24 months

Sales Receipts should be filed by the order date. Clearly print return or refund policies for your business on the sales receipts. Your customer service number should be printed on every single sales receipt. Sales receipts must all be legible and should reflect your business name exactly as it appears on your signage. In case of a retrieval request or a chargeback, you will need to provide a legible copy of the sales draft.

Customer Service is the Key

Credit card fraud is very difficult to avoid when the cardholder and the card is not present during the transaction. Keep a list of bad customers to identify high risk orders. Often, disputes are because of “friendly fraud” or the customer simply regrets making the purchase. The best way to avoid this type of chargebacks is by responding with great customer support.. A partial refund is an option, but full refunds can be considered to avoid a chargeback (unless you are sure that the transaction is fraudulent). If the product or the service is going to be delayed, notify them by phone and through email. If it is a custom order, or there will be a delay in delivery, wait to process your customer’s credit card until the time the product is shipped. If a customer requests cancellation of a recurring transaction, always respond to the request in writing and cancel the transaction immediately. All communications with tcustomers should be recorded. This adds to the proof of services and avoid identity theft.

Be conscious of card checkers.

These are buyers who place low dollar transactions and then place large dollar transactions. Professional fraudsters tend to place a large volume of orders within a short period of time. Carefully review and verify such activity. Be wary of buyers who place orders using information such as different names, billing details, or email addresses. Take note of buyers purchasing unusual volumes of merchandise, and verify the possibility of duplicity. Take note of buyers requesting services to be rendered to an email address that differs from the order email address. Review the order’s details for any invalid or mismatched information. Below are examples of such discrepancies:

• Invalid or a wrong number
• Phone number does not match the state or country of the billing address
• IP location does not match the billing address
• Website log-in or registration details do not match the order’s details (such as name, IP, or email address)
• Need help with Chargebacks? Please complete our form for a Free Chargeback Analysis. We will manage your chargebacks!

How to Manage Visa Chargeback Reason Code 57?

Visa uses Chargeback 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:

• The 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 the same product.
• The 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?

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 an acquirer.
• If cardholder participates 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 the acquirer.
• If merchant void the transactions, inform the acquirer to avoid Chargeback.