A HUGE CHARGEBACK WIN FOR OUR MERCHANT!

 

How a transaction dispute and chargeback is processed! 

• A customer, for a number of reasons, doesn’t recognize a charge on their credit card statement or does not agree with something on that charge, contacts their CREDIT CARD issuing bank to dispute the charge.
• The CREDIT CARD issuing bank reviews the customer’s dispute. They may deny the claim OR accept it.
• If they siding with the customer, the issuing bank takes the cost of the CNP transaction plus any additional fees (Chargeback Fees - Approximately $30.00) out of the business’s merchant account. The issuing bank may refund the customer’s money, satisfying the customer.
• The CREDIT CARD issuing bank records the chargeback information and relays it to the business’s Merchant Processing bank.
• The business’s Merchant Processing bank reviews the data and either resolves the issue with data on file (like duplicate charge) or notifies the business.
• If the Merchant Processing bank forwards the chargeback to the business, the business can accept the chargeback (lose the money) or dispute it back. The merchant will have to provide evidence that the customer made a legitimate purchase, knew the price, agreed to the price and received their purchase from the business. Providing evidence can be difficult if the business doesn’t know what is needed to RESERVE the Chargeback! 
• With the merchant evidence in hand, the Merchant Processing acquiring bank represents the business’s chargeback dispute to the customer’s CREDIT CARD issuing bank. If the issuing bank sides with the business, it returns the transaction amount to the merchant account. If the issuing bank sides with the customer, the chargeback stands, and the business can pursue arbitration. In some cases, the issuing bank sides with the business but files a second chargeback if new information further supports the customer’s dispute.

STOP LOSING CHARGEBACK DISPUTES! 

The merchant loses a lot when they lose a Chargeback?

• Lost merchandise.
• Chargeback fees (Typically $30 each)
• Shipping costs.
• Potential credit card penalties. (Some processors drop merchant that get too many chargebacks due to RISK!)
• High transaction fees. (Merchant Processors purposely charge more in fees and rates to companies that have a tendency to receive Chargebacks) Example: Travel Industry, Elective Surgery, Energy & Vitamin Industry are a few)
• Network termination. (Even the Brands can cancel a merchant if they deem them a HIGH RISK due to many Chargebacks!)

When you work with Merchant Processing Solutions, you have a merchant advocate that will notify YOU of a new Chargeback. Tell you what the issue is and how we can dispute it to KEEP YOUR HARD EARNED MONEY! If you are losing money every month due to Chargebacks, call us today and let us help you keep your money by winning the disputes! 

Merchant Processing Solutions Inc.
954-938-2420