Tips on Effective Credit Card Chargebacks Representment In USA

WHAT IS A CHARGEBACK?

Chargeback is a mechanism by which a cardholder claims the merchant and calls the credit card issuer to dispute a transaction that had previously been credited. A cardholder may have various reasons to raise a dispute against the transaction like goods and services never supplied to the customer, defective merchandise received by a customer, refund not processed to the customer, merchant used the expired card and so on. The Merchant needs to give an explanation about the amount debited from cardholder account.

WHAT IS CHARGEBACK REPRESENTMENT?

Chargeback Representment is a term for providing Packet of Evidence as per Reason Codes to acquiring the bank or the Credit Card Company that shows that the transaction was made with full knowledge of the cardholder and also shows that cardholder agreed with all the Terms and Conditions which was displayed before buying the Product or Services. Chargeback also includes the information about Full Refund and Partial Refund issued to Cardholder.

When a Customer or Issuing Bank issues a chargeback, the merchant gets transaction information from acquiring a bank with given deadline to decide if the merchant is going to fight or not. If a merchant is ready to fight, he would have to provide all the information regarding the transaction in a single packet. Acquiring Bank will then send evidence to the Issuing Bank, where a team of experts will examine all the evidence and if the team gives a verdict in the merchant’s favor, the chargeback will be reversed and if the team is not satisfied with the submitted evidence, the particular amount is then deducted from the merchant’s account.

Tips on effective Chargeback Representment:

• Spot the Reason Code and collect evidence according to it.
• Collect all the evidence which was provided to the customer at the time of sale and arrange in a single packet.
• Always highlight Important key proofs of order id, tracking number, customer’s email id, IP address, order confirmation etc.
• Provide proof of Refund if Customer refunded before disputing the Chargeback.
• Provide all evidence which was signed by Customer before buying the Services.

Issues that stop you from a perfect Chargeback Representment:

• The important issue is time frame; Merchant should send all evidence before the deadline.
• Provide all evidence according to the reason code, there is no chance for mistake.
• Show all the agreement(s) signed by a customer in a proper manner.
• Provide refund receipt as a Proof of Refund

The merchant pays Real Cost of Chargeback:

If Merchant loses a Chargeback dispute, they not only end up losing transaction; they have to pay more than that. The real cost pay by the merchant is shown below, using the example of selling Laptop:

• Laptop Cost: $500.00
• Shipping Cost: $15.00
• Credit Card Fees: $13.50
• Customer Service Fees: $3.50
• Business Operating Fees: $5.00
• Total Cost: $537.00
• Chargeback Fees: $45.00
• Total Cost of Chargeback: $582.00

The Merchant end up paying much more than the original Transaction Amount and the Shipping Charge.

International Offshore Merchant Accounts empower online businesses

Offshore Merchant Account Services. It helps the merchant to process payments through their website and allows them in making a transaction and process their sale. It offers and contains all the features just like the regular and domestic offshore high-risk merchant Account even there can also be both the categories which can be supported like High Risk Business and Low Risk Business.

Payments offer offshore merchant accounts for some of the hardest to place international and US high risk businesses, offering reliable and affordable comprehensive offshore credit card processing, ACH, and chargeback management services.

That Offshore merchant account is dedicated to High Risk Businesses or for Such businesses which cannot be approved by their Domestic Banks. But this is not the case it’s only the location making difference because the bank approving the business is not a domestic Bank or a bank from the Resident Country.

Global payment solutions yielded by these accounts enable merchants to accept multiple currencies of different denominations from their global clients over the internet. International merchant accounts assist in conducting overseas transactions but they aren’t always provided to client businesses operating beyond France, Germany, Italy, UK, and US.

Offshore merchant Services: We are a credit-card processing company serving high-profile clients in more than 10 nations worldwide. Merchant acquiring banks in each of these countries have made it easier for us develop such a strong payment processing platform. A majority of online offshore businesses can now avail international merchant accounts due to this merchant acquiring collaboration. Currently, Merchant Stronghold accounts for innumerable international merchant accounts indulging in the processing of payments involving multiple currencies. Payments involving such currencies are beneficial for both moto and online business across 50 nations.

                                              

3 Questions to Ask Your New Credit Card Processor And Payment Gateway

If you are running a business that deals with sales and purchases, there might arise situations where you need to choose a new credit card processor, but it is not as easy as it seems. It is a big decision and before making a final call you should be aware of certain things, like Fee charged and contract, customer service department and cost-effective tool. Do the comparison, study the market and then make the final decision. Let us now discuss the 3 questions you should ask your new credit card processor before finalizing it:

Structure of Fee Charged

When you opt for such tools, you are charged with a certain amount of fee, but it is important to know what exactly those fees are, more commonly called breakage of the fee. The fact is that most of the high-risk merchants have no idea about the process and end up paying a high amount of fee without actually knowing the hidden high markups in their pricing structure. To process the transaction, an interchange part of pricing structure is paid to the card issuer. Apart from this,there is an extra fee that they put on the top of it to gain more profit. So, when you are applying for new credit card processor/merchant payment processor, request them to separate out the interchange fee so that you can have a clear idea about how much money they are making or charging you in total.

Contract and Time Duration

Whenever a merchant wants to opt for a new credit card processor, he/she needs to sign a contract, which will lock you with them for certain period of time. It is important for high-risk merchants to check for options when shopping around for new processor and also to finalize the processor with shorter time duration instead of multi-year contracts. The advantage of choosing a short-term contract is:

• They will work hard for your business to impress you so that you renew the contract instead of shopping for new credit card processor or merchant payment processor once the contract expires. If you end up signing a multi-year contract, you will soon be forgotten and ignored and service quality provided may deteriorate.
  
• If any serious problem arises and you have a short-term contract or non-existing contract, immediate help will be provided to resolve the issue so as to retain you as a customer, whereas, if you have a long-term contract, it might take some time to resolve the issue you are facing.
  
• If you are not happy with the services provided to you by your current credit card processor, you can try out the new processor, which can meet your needs, but if you have a long-term contract, you have no option than sticking with the same provider until and unless your contract expires.

Customer Service Department

Efficient and knowledgeable customer service department is like icing on the cake. Get the opinion of the current customers of the credit card processor and find out about their experiences with the customer service department.Look for the processor whose,

• Support representatives are knowledgeable and can tackle any kind of issue if arises.
  
• Call waiting time is minimum.
  
• Support representative should be able to resolve issues in the first call and in shortest time duration.

If you are lucky enough and end up buying a credit card processor or merchant payment processor for your high-risk business that fulfills all your needs and the fee charged is worth every single penny you pay, hold on tight to it and never let it go. If you are happy with the services provided and the fee charged, it would be a good decision to renew the contract with the same provider than starting the process all over again.