February 6th, 2017 by Elma Jane
Managing Chargeback:
Chargeback – a forcible reversal of funds due to a credit card holder’s dispute of the transaction. Chargebacks can be a huge headache for a business owner, it can affect a business’ ability to maintain a credit card processing account and put funds on hold.
How can you protect your business and maintain a good processing account? First, you need to know the basic chargeback types:
- Clerical – duplicate billing, incorrect amount billed or refund never issued.
- Fraud – consumer claims they did not authorize the purchase or claims identity theft. Fraud disputes can be more complicated since they are the result of fraudulent consumer purchases.
- Quality – consumer claims to have never received the goods as promised at the time of purchase.
- Technical – expired authorization, non-sufficient funds or bank processing error.
Managing chargebacks is an important piece and it can certainly be reduced, to save your business, time, money and reputation.
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Posted in Best Practices for Merchants Tagged with: bank, chargeback, consumer, credit card, fraud, funds, processing account, refund, transaction
November 14th, 2013 by Elma Jane
Los Angeles-based company Verifi, providing antifraud and risk-management services recently secured a patent for its dispute-resolution technology that enables merchants to avoid chargebacks by turning them into refunds earlier in the process. According to the patent abstract, the patent covers “receiving, at the partner platform, an inquiry/dispute event notification,” and “refunding the transaction or canceling future or recurring charges associated with the transaction.”
Verifi noted in the patent application, consumers are increasingly contacting their issuing bank first in the case of a disputed credit or debit card charge, cutting the merchant out until later in the process. The patent in question, in addition to streamlining the process for issuers engaged in the dispute process, helps recurring merchants by removing cardholders from the recurring payment program during the resolution process so additional charges will not come into question until the original dispute is settled.
Posted in Best Practices for Merchants, Credit card Processing, Payment Card Industry PCI Security Tagged with: antifraud, cardholders, chargeback, consumers, dispute-resolution, disputed, inquiry/dispute, issuing, Merchant's, patent, payment, platform, process, receiving, recurring charges, refund, refunding, resulution, risk-management, Security, services, settled, transaction, verifi
