How can I take preventative measures to protect my business against fraud?

Limit your chargeback risks by:

  • Ensure goods or services are provided as advertised and where applicable obtain and store signed delivery confirmation that goods were collected or received by the actual customer.
  • Be wary of unusual or large purchase requests.
  • Use the business or company name most recognized by your customers on your transaction receipts. This should be the trading name you have provided for your merchant facility.
  • Your customer should always be made aware of a cancellation or refund policy in writing, including if you do not offer refunds or only offer store credit. Proof of disclosure is required when there is a chargeback raised for credit not processed.
  • Provide transaction receipts when requested, without delay.
  • When the card is not present, obtain as much information about the customer as possible. This can include full name, address, phone numbers, email address, credit card number, name of the bank, expiry date, CCV, etc.
  • It is advised to obtain the cardholder’s signature on some correspondence (for example, a scanned order confirmation). NB: Identifying your customer is the actual cardholder is your responsibility.
  • Use 3D Secure programs such as Verified by Visa, Mastercard® SecureCode™, and American Express SafeKey® to provide you with enhanced online security.
  • Respond to our’ Requests for Information’ within the date specified in our notification letter.

What happens if I get a chargeback?

 You will be alerted by an email sent to you by our system, notifying you of the chargeback.  You will need to follow the instructions in the email carefully and to collate documentation. What information you need to provide to us to challenge the process for you will be included in the email.  Chargebacks are very time-sensitive, so you must respond to any request as a matter of urgency.

How do I submit evidence for a dispute process?

Timeframes for Retrieval Requests

You can obtain as much information as possible about the cardholder. This can include full name, address, phone numbers (including landline), credit card number, name of bank, expiry date, CCV, date of birth, etc. You may want to check the name and address in a phone directory if the transaction or location appears unusual. It is also advisable to obtain the purchaser and cardholder’s signature on some correspondence for example a faxed order confirmation.

Visa International and MasterCard International have set timeframes for resolution of disputes, which all financial institutions must adhere to. It is imperative that our acquirer receives the requested transaction documentation within the timeframes stated on our letters. This is usually 15 days in total, including a 2nd request letter sent after 7 days.

You can forward your reply by email (supplied in our notification to you). Please note if the Retrieval Request is not fulfilled within the specified time frame, the Issuer is permitted to exercise their right to Chargeback the transaction on the basis that the requested information or item was not received. If a merchant fails to reply to the Retrieval Request in time and a Chargeback is processed the merchant has no rights or ability to reverse the Chargeback.

Should I contact my customer’s bank about a dispute?

Your customer needs to contact their bank and withdraw the chargeback against you.

How can I avoid a chargeback process progressing?

The simplest method to avoid a chargeback and fee is to contact your customer, explain the situation, and ask them to withdraw the chargeback from their bank.

What charges apply if I lose a chargeback dispute?

If you lose a dispute over a chargeback, you will be charged the $35 (ex GST) fee.

Can I appeal a disputed outcome?

If you have provided all the correct information, as stated in our chargeback email and within the time specified. Still, the dispute has not been overturned; we will contact the bank on your behalf and put forward a challenge for you. Or gain more information as to why the dispute was not seen in your favour.