Q: What is a chargeback?
A: A chargeback is an activity that occurs when a cardholder disputes a transaction on their card account through their issuing bank. A chargeback can occur for a number of reasons including but not limited to:
- defective merchandise
- recurring payment was not stopped as agreed
During the chargeback process, funds related to a disputed transaction are adjusted, resulting in financial changes to both the cardholder and the merchant until such time as the case is resolved.
Q: What is a retrieval request?
A: A retrieval request is an activity that occurs when a cardholder does not recognize a transaction on their card account and reaches out to their issuing bank to request more information. A major difference between a retrieval request and a chargeback is that during the retrieval request process, none of the funds related to a transaction in question are adjusted. A retrieval request may result in a chargeback if appropriate information is not supplied during the retrieval request process.
Q: What is the difference between a refund and a chargeback?
A: A refund generally occurs between a merchant and a cardholder and results in full or partial credit to the cardholder’s account for a specific transaction. Additionally, a merchant generally receives the goods and/or services back from the cardholder in exchange for applying the credit back to their account. A chargeback occurs when a cardholder works through their issuing bank to attempt to receive a credit for a specific transaction or a group of transactions and may not result in a return of funds back to the cardholder.
Q: How do I know if a payment was charged back?
A: You will receive a chargeback notification from TSYS Merchant Solutions via fax or USPS mail. This notice includes the reason for the dispute, amount and date of the transaction, the last 4 digits of the card number, as well as a case number and rebuttal deadline. Also, your next daily remittance will be net the adjustment of the chargeback amount.
Q: How do I know if a payer submitted a retrieval request?
A: You will receive a retrieval notification from TSYS Merchant Solutions via fax or USPS mail. This notice includes the reason for the inquiry, amount and date of the transaction, the last 4 digits of the card number, as well as a case number and rebuttal deadline.
Q: As a merchant, what do I need to do, if I receive a chargeback or retrieval request?
A: Using the case number and rebuttal deadline provided, you should forward documentation to support the transaction. This documentation includes, but is not limited to, a copy of a contract or receipt signed by the payer, a confirmation number and/or email, as well as proof of an existing partial or full refunds.
Q: Are there any fees associated with a chargeback or retrieval?
A: Your merchant account may include a chargeback and/or retrieval fee. Please refer to your merchant agreement for pricing details.
Q: Are there any steps I can take to protect myself from receiving a chargeback?
A: To reduce the risk of chargebacks, we suggest that you communicate clearly with your customers. This includes obtaining and storing a payer’s written request and authorization for payment, including receipt with client signature and/or agreement, if required. Using the DBA Name and phone number you provided to PaymentSpring, a payer will be able to recognize the transaction on their bank statement and contact you directly with any concerns.
To avoid chargebacks, be sure to respond to your customers in a timely manner. If you find that you are receiving several inquiries either directly from your clients or via retrieval requests and chargebacks, please contact our Client Services Team to review the account info you provided. In addition, we recommend the use of the CVV code and full AVS, which includes verification of the billing address and zip code.