Merchants must strike a balance between preventing fraud as much as possible without encumbering legitimate transactions. Ensure you're processing with a PCI-compliant gateway. This means you're authenticating billing addresses with AVS verification, requiring the CVC code off the back of [...]

The response time frame for merchants varies by payment network and reason code. However it's important to note that the clock starts ticking once the acquirer receives the chargeback. Merchants will often only know this process is underway when they [...]

If you've received an unwarranted chargeback, you'll have to prove it with a representment, which includes submitting a rebuttal letter with compelling evidence. That evidence is anything that can tie a cardholder to the sale they charged back. It can [...]

Representment is also known as "second presentment" — the first presentment being when the merchant first presents the transaction for payment. A re-presentment responds to a chargeback, where the merchant presents the transaction a second time along with any "compelling [...]

Once the merchant receives an alert from a legitimate dispute, a refund must be issued. Merchants can issue refunds through their usual channels, typically through the gateway where the purchase was initially made. To ensure the refund prevents a chargeback, [...]

Also known as a chargeback alert or simply "alerts," these are notifications a merchant can receive that a dispute is being investigated and a chargeback is pending. To receive alerts, merchants must subscribe to either Ethoca or Verifi (or both [...]

The short answer is: avoid them at all costs! There are three steps merchants should take to avoid chargebacks: prevention. reduction, and recovery. Prevention Chargebacks can be prevented by reducing merchant processing errors. You should also proactively inform your customers [...]

The cardholder contacts their issuing bank with a disputed transaction. The issuer investigates, and almost always grants their customer the chargeback they seek. The issuer remits the chargeback with a reason code back to the merchant's acquiring bank. The acquiring [...]

The United States Congress created the chargeback as part of a raft of consumer protections under the 1974 Fair Credit Billing Act (FCBA). At the time, credit cards were fairly new tech, consumers were initially apprehensive to adopt them, and [...]

Not all disputes become chargebacks. The chargeback is a common result of a dispute, especially when a cardholder takes their dispute to their issuing bank. In this case the dispute is the cause, and the chargeback is often the outcome. [...]

Consumers may initiate a chargeback by raising a dispute with their card-issuing bank. When the issuing bank deems the dispute as valid, they take the transaction funds back from the merchant. This taking of funds is known as a chargeback. [...]