|On a charge back request, if the merchant did not have the customer sign the credit card transaction slip, and the merchant did not verify the signature against the card signature, the merchant is usually held responsible for that transaction.|
Fraud related charge-backs occur when the cardholder does not recognize the transaction and/or the transaction was not properly authorized.
Charge-back reason codes for fraud include: No Cardholder Authorization, Fraudulent Transaction-Card-Present Environment, and Fraudulent Transaction-Card-Absent Environment.
If you are unable to obtain a signature and verify the signature the following tips may help to minimize fraudulent transactions.
These tips will not protect you in the event of a charge-back request, but they will help prevent the charge back requests from occurring in the first place.
To respond to fraud related charge backs, ensure you provide all supporting documentation including signed, swiped sales receipts, imprints for manually entered transactions, contracts, and any correspondence relating to the transaction.
Credit transaction Receipts must include the following:
Charge-backs for duplicate processing occur when the cardholder’s account is charged more than once for a single sale. This can happen when the same transaction is entered into the POS more than once, the same batch of transactions is submitted more than once, receipts are deposited for the same transaction with more than one bank, or more than one sales receipt is created for the same purchase.
Avoid duplicates by processing one transaction at a time. If there is more than one purchase in a day from the same customer, create separate invoices for each purchase. Balance deposits and confirm batch totals at the end of every business day to check for duplicate billing. If a customer has been charged more than once for one purchase, immediately credit the cardholder’s account.
Take the following steps for a duplicate processing charge-back:
An easily avoidable and fairly common charge-back happens when a retrieval request is not responded to properly within the required time frame. The reason code is Requested Tran Data was not received within Max Time frame. Before a charge-back is issued the merchant receives a retrieval request for a sales draft for a particular purchase. If the sales draft is not received in the specified time frame or the sales draft does not meet certain criteria, a non-reversible charge-back can be issued. To avoid this charge-back, simply respond to the retrieval request with the documents requested within the required time frames.
|If your business relies heavily on phone, and ecommerce orders, be prepared to loose some money to fraudulent transactions.
Do not make a transaction for more than what you are willing to loose.
|PIN based transactions such as debit and EMV Credit/Debit are an excellent way to lower your transaction costs and your fraudulent costs.|