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Chargeback is the return of funds to a consumer, mainly used in the United States, forcibly initiated by the issuing bank of the instrument used by a consumer to settle a debt. Specifically, it is the reversal of a prior outbound transfer of funds from a consumer’s bank account, line of credit, or credit card.

As a card holder, you probably know that you can call your bank if merchant doesn’t make things right to get your money back. As a merchant, what you may not know is that is known as a “chargeback”. It is a transaction disputed by the cardholder or card issuer. Businesses must be able to provide proof that the disputed transaction is valid and in accordance with Visa/MasterCard regulations or risk having their account debited for the disputed amount.

If you receive a chargeback, we will debit your checking account for the amount of the transaction, and send you a chargeback notice. This notice includes the details of the transaction as well as specific instructions on how to respond. A business receiving a chargeback notice must provide proof that the transaction is valid and satisfactory to the rules/regulations of Visa/MasterCard to get money back. Receiving a chargeback notice can also mean extra processing time and cost to you, a narrower profit margin, and possibly a loss of revenue. That’s why it’s important to carefully track and manage the chargebacks that you receive, avoid future chargebacks, and know your re-presentment rights.

After being notified by a cardholder about a disputed transaction, the cardholder’s issuing bank may order a copy of that particular sales draft through us to determine what occurred at the point of sale. This is called a copy request or retrieval. A retrieval request most often occurs when a cardholder loses their copy of the transaction receipt, does not remember the transaction or questions the transaction for any reason.

To avoid chargebacks, act promptly if contacted directly by the cardholder to resolve a dispute.
If the cardholder does not contact you, respond to inquiries with as much information as possible about the sales transaction in question.

Limit one authorization for each settled transaction.
Obtain an authorization code. Refuse to process a transaction when you receive a declined code during authorization.

To verify cardholder account status, perform a zero value account verification transaction instead of $1.00 authorization transaction.

Include a description of the goods or services on the transaction receipt.
Deliver merchandise or services before charging the card.

Include the CVV2/CVC2 and AVS codes for card not present transactions, if applicable.
Submit transaction receipts on the same day the transactions are authorized.
Make sure an imprint appears on a manual transaction receipt or that the relevant transaction information appears on the terminal-generated transaction receipt.
Do not accept expired cards or cards having effective dates after the date of the transaction.
Void authorizations within your outstanding batches if they are not going to be settled.
Call for Voice Authorization if you are still suspicious of the cardholder, card, or transaction after receiving an approval code

Headquartered in Pinole California, MerchantZoom, Inc. was founded by Wally Arakozie. Previously employed by one of the largest merchant processing companies here in California for nearly a decade. Since the company’s beginnings MerchantZoom, has grown into a reputable national merchant provider. Along with delivering state of the art technology and competitive rates, MerchantZoom, thrives on personalized local customer service and support. In order for your business to ZOOM!

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Content Release Date Feb 12, 2018 – MerchantZoom Inc.
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