Important Terms:
Credit Card Dispute: A credit card dispute occurs when your customer contests a credit card transaction with their credit card company. This can happen for various reasons, such as unauthorized charges, incorrect amounts, or revoked authorization.
Credit Card Chargeback: A credit card chargeback specifically refers to when the disputed credit card payment is refunded to your customer.
Retrieval Request: A Retrieval Request is if a cardholder does not recognize a charge and inquires with their bank.
Common Chargeback Reasons:
- Fraudulent transaction
- Duplicated charges
- Not as described/defective merchandise
- Services not provided or merchandise not received
- Refund not processed after the returned item
Best Practices for Credit Card Processing:
- Ensure that all displayed pricing is clear and up to date.
- When appropriate, collect billing address, zip code, and CVV.
- Use additional ID verification such as a driver’s license.
- An agreement or authorization form provides you with additional documentation for large purchases and can also detail the product or service should a dispute arise later. Have the customer sign the form.
- Maintain a history of tracking and proof of delivery.
Chargeback Fees:
- There is a $15.00 fee per retrieval request.
- If a cardholder is adamant they did not make the charge or did not receive services, this is a Dispute/Chargeback. There is a $25.00 fee per chargeback.