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the portion signed by the cardholder; and the area where the authorization codes
<br />with amounts and dates, are located).
<br />If the information you provide is both timely and, in our sole discretion, sufficient t
<br />warrant a re -presentment of the transaction or reversal of the chargeback, we will d
<br />so on your behalf. However, a re -presentment or reversal is ultimately contingent
<br />upon the card issuing bank and /or cardholder accepting the transaction under
<br />applicable payment organization guidelines. Re -presentment or reversal is not a
<br />guarantee that the chargeback has been resolved in your favor.
<br />If we do not receive a clear, legible and complete copy of the transaction
<br />documentation within the timeframe specified on the request, you may be subject to
<br />a chargeback for "non -receipt" for which there is no recourse.
<br />If you do not dispute the chargeback within the time limits set by the payments
<br />organization rules and regulations, you will forfeit your reversal rights. Our only
<br />alternative, which is available for Visa and Mastercard transactions only, is to
<br />attempt a "good faith collection" to the card issuing bank on your behalf for non -
<br />fraud chargeback reason codes. This process can take up to 6 months and must
<br />meet the card issuing bank's criteria (for example, at or above a set dollar amount).
<br />Good faith collection attempts are not a guarantee that any funds will be collected
<br />on your behalf. Card issuing banks normally charge good faith collection fees, which
<br />are deducted from the transaction amount if accepted in addition to any processing
<br />fees that are charged by us.
<br />The card issuing bank may charge a handling fee which will be debited from your
<br />settlement account or settlement funds if a transaction documentation request
<br />results from a discrepancy between the sales draft and the transmitted record
<br />regarding any of the following:
<br />• the name of your business;
<br />• the city, state, or country listed for your business;
<br />• the transaction date.
<br />Visa: If we reverse the chargeback and re -present the transaction to the card
<br />issuing bank, the card issuing bank, at its sole discretion, may elect to submit the
<br />matter for arbitration before Visa. Visa currently charges a $250 filing fee and a
<br />$250 review fee. Whether or not a decision is made in your favor, you will be
<br />responsible for all such fees and charges and any other applicable fees and charges
<br />imposed by Visa. Such fees and charges will be debited from your settlement
<br />account or settlement funds, in addition to the chargeback.
<br />STAR& If we reverse the chargeback and re -present the transaction to the card
<br />issuing bank, the card issuing bank, at its sole discretion, may elect to submit the
<br />matter for arbitration before STAR. Whether or not a decision is made in your favor,
<br />you will be responsible for all fees and charges relating to that arbitration and any
<br />other applicable fees and charges imposed by STAR. Such fees and charges will be
<br />debited from your settlement account or settlement funds, in addition to the
<br />chargeback.
<br />Mastercard: If we reverse the chargeback and re -present the transaction to the
<br />card issuing bank, the card issuing bank, at its sole discretion, may elect to resubmit
<br />the chargeback. In such event, at our discretion, we will debit your settlement
<br />account or settlement funds for the chargeback. However, if you feel strongly that it
<br />is an invalid chargeback, we may, on your behalf and at your request, submit the
<br />matter for arbitration before Mastercard. Mastercard currently charges a $150 filing
<br />fee and a $250 review fee. Whether or not a decision is made in your favor, you will
<br />be responsible for all such fees and charges, and any other charges imposed by
<br />Mastercard. Such fees and charges will be debited from your settlement account or
<br />settlement funds, in addition to the chargeback.
<br />Discover Network: If Discover Network rejects our re -presentment request and you
<br />feel strongly that the chargeback is invalid, we may, at our discretion and on your
<br />behalf and at your request, submit the matter for dispute arbitration before Discover
<br />Network. Discover Network charges Acquirers fees for re -presentment requests and
<br />matters submitted to Discover Network for arbitration We, In turn, may charge you
<br />fees for these items.
<br />PayPal: If PayPal rejects our re -presentment request and you feel strongly that the
<br />chargeback is invalid, we may, at our discretion and on your behalf and at your
<br />request, submit the matter for dispute arbitration before PayPal. PayPal charges
<br />Acquirers fees for re -presentment requests and matters submitted to PayPal for
<br />arbitration. We, in turn may charge you fees for these items.
<br />American Express: You may request a chargeback reversal if the chargeback was
<br />applied in error, provided that (i) you have responded to the original inquiry within
<br />the specified timeframe set out in your dispute notification, and (ii) you have
<br />provided all supporting documentation to substantiate the error.
<br />Alipay: Refer to appendix 5.
<br />Chargeback reasons
<br />The following section outlines the most common types of chargebacks. This list is
<br />not exhaustive. Within each group, we have included recommendations on how to
<br />reduce the risk of chargebacks. These are recommendations only, and do not
<br />guarantee that you will eliminate chargebacks.
<br />Chargebacks due to authorization
<br />Description
<br />Proper authorization procedures were not followed and valid authorization was not
<br />obtained.
<br />A TRUE COPY
<br />Likely scenario
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<br />• authorization not obtained. , CLERK
<br />o • authorization was declined.
<br />o • transaction processed with an expired card and authorization was not obtained.
<br />• transaction processed with an invalid account number and authorization was not
<br />obtained.
<br />• Card Recovery Bulletin (CRB) or Exception File was not checked (transactions
<br />below floor limit).
<br />Recommendations to reduce risk of chargeback
<br />• obtain valid authorization on the day of the transaction.
<br />• if you receive the following responses:
<br />—decline - request another form of payment from the cardholder;
<br />—referral - follow the voice procedures to obtain a valid authorization and obtain
<br />an imprint of the card;
<br />—"Pick-up" - this means that the card issuing bank is asking for the card to be
<br />returned
<br />—you must not accept the card for payment and, in addition, you may retain the
<br />card and send it to us so that we can arrange for its return to the card issuing
<br />bank.
<br />• you must not exceed any predetermined thresholds for specific POS device types
<br />as specified by each payments organization.
<br />• you must ship goods within the timeframe set out in section 19, after you have
<br />obtained authorization.
<br />Chargebacks due to cancellation and returns
<br />Description
<br />Credit was not processed properly or the cardholder has canceled or returned items.
<br />Likely scenario
<br />• Cardholder received damaged or defective merchandise.
<br />• Cardholder continued to be billed for canceled recurring transaction.
<br />• Credit transaction was not processed.
<br />Recommendations to reduce risk of chargeback
<br />• issue credit to the cardholder on the same account as the purchase in a timely
<br />manner.
<br />• do not issue credit to the cardholder in the form of cash, check or in-store
<br />/merchandise credit as we may not be able to recoup your funds if the transaction
<br />is charged back.
<br />• for recurring transactions ensure customers are fully aware of the conditions:
<br />—cancel recurring transactions as soon as notification is received from the
<br />cardholder or as a chargeback, and issue the appropriate credit as needed to the
<br />cardholder in a timely manner; and
<br />—notify the cardholder within 10 days (domestic) and 15 days (international) in
<br />advance of each billing, to allow the cardholder time to cancel the transaction.
<br />• provide proper disclosure of your refund policy for returned/canceled merchandise,
<br />or services to the cardholder at the time of transaction. Card present, cardholder
<br />signed the sales draft containing disclosure.
<br />• if applicable, the words "NO EXCHANGE, NO REFUND," etc. must be clearly
<br />printed in 1/4 -inch lettering on the sales draft:
<br />—Ecommerce, provide disclosure on your website on the same page as check out.
<br />Require the cardholder to click to accept prior to completion.
<br />—Card Not Present, provide the cancellation policy at the time of the transaction.
<br />• for any Travel & Entertainment (T&E) transaction, provide cancellation numbers to
<br />cardholders when the services are canceled.
<br />• ensure delivery of the merchandise or services ordered to the cardholder.
<br />• participate in recommended fraud mitigation tools.
<br />Chargebacks due to fraud
<br />Description
<br />Transactions that the cardholder claims are unauthorized; the account number is no
<br />longer in use or is fictitious, or the merchant was identified as "high risk."
<br />NOTE: For Visa transactions, to ensure that you preserve your chargeback rights,
<br />you must:
<br />• complete a retrieval request and provide a sales slip that contains all required data
<br />elements; and
<br />• respond to all retrieval requests with a clear legible copy of the transaction
<br />document that contains all required data elements within the specified timeframe.
<br />Likely scenario
<br />• multiple transactions were completed with a single card without the cardholder's
<br />permission.
<br />• a counterfeit card was used and proper acceptance procedures were not followed.
<br />• authorization was obtained; however, full track data was not transmitted.
<br />• the cardholder states that they did not authorize or participate in the transaction.
<br />Recommendations to reduce the risk of chargeback Card Present
<br />Transactions:
<br />• obtain an authorization for all transactions.
<br />• for recurring transactions ensure customers are fully aware of the conditions:
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