How to Dispute a Chargeback
Let your bank review the dispute notice., Review the reason code., Gather evidence.
Step-by-Step Guide
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Step 1: Let your bank review the dispute notice.
A chargeback begins when a customer contacts the issuing bank to request that the issuing bank reverse a credit card payment to you, the merchant.
Customers request chargebacks for a number of reasons, including duplicate charges for a single purchase, instances where an online order never arrived, or unauthorized purchases made by someone other than the cardholder.
The issuing bank will review the claim.
If the issuing bank finds the claim to be valid, it will temporarily remove the charge from the customer's statement and forward the claim to the merchant's bank.Once the merchant's bank receives the dispute notice, they will review it.
If the bank needs additional information about the transaction from you, they will contact you. -
Step 2: Review the reason code.
Your bank will forward the dispute notice to you and ask you for information about the transaction.
When you receive the dispute notice, check the "reason code." There are different codes for different types of chargeback claims.
For example, Visa uses 30 as the code for "Services Not Provided or Merchandise Not Received."You can find a list of Discover, Visa, and MasterCard reason codes at https://www.merchantconnect.com/CWRWeb/pdf/CBRReasonCodeListUS0908.pdf. , You should document your business transactions to the greatest extent that is practical.
If you own a brick-and-mortar store, you may have records that the customer swiped his or her credit card and signed a receipt.
If you have an online business, you may have electronic records of the transaction and emails between the customer and yourself.
Review your records to see whether the dispute is valid.
For instance, you might discover that the receipt shows that the customer was in fact overcharged. -
Step 3: Gather evidence.
Detailed Guide
A chargeback begins when a customer contacts the issuing bank to request that the issuing bank reverse a credit card payment to you, the merchant.
Customers request chargebacks for a number of reasons, including duplicate charges for a single purchase, instances where an online order never arrived, or unauthorized purchases made by someone other than the cardholder.
The issuing bank will review the claim.
If the issuing bank finds the claim to be valid, it will temporarily remove the charge from the customer's statement and forward the claim to the merchant's bank.Once the merchant's bank receives the dispute notice, they will review it.
If the bank needs additional information about the transaction from you, they will contact you.
Your bank will forward the dispute notice to you and ask you for information about the transaction.
When you receive the dispute notice, check the "reason code." There are different codes for different types of chargeback claims.
For example, Visa uses 30 as the code for "Services Not Provided or Merchandise Not Received."You can find a list of Discover, Visa, and MasterCard reason codes at https://www.merchantconnect.com/CWRWeb/pdf/CBRReasonCodeListUS0908.pdf. , You should document your business transactions to the greatest extent that is practical.
If you own a brick-and-mortar store, you may have records that the customer swiped his or her credit card and signed a receipt.
If you have an online business, you may have electronic records of the transaction and emails between the customer and yourself.
Review your records to see whether the dispute is valid.
For instance, you might discover that the receipt shows that the customer was in fact overcharged.
About the Author
Susan Flores
Enthusiastic about teaching organization techniques through clear, step-by-step guides.
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