Chargeback Advice – Merchant Returns

Due to the holiday season and a number of refunds being issued, please keep the following information in mind to help protect your merchants.

– If a cardholder is being issued a credit back, the merchant MUST issue the credit to the card originally used.

– If the cardholder says the card is closed, the merchant should still attempt the credit. The system will record a credit attempt was sent to the cardholder to protect them from a potential chargeback.

– If a reject occurs, a credit reversal will be issued and the credit amount will be refunded back to the merchant. They can then go back to the cardholder for an alternate card of the same card type (i.e. if original card was a Visa-use another Visa…Master Card- use another Master Card and so on.)

– If they do not have another card to use of the same type, the merchant should get them to sign off on a form that they are accepting a check refund in place of a credit card refund. The cardholder should sign the form prior to the merchant issuing the check.

– If the cardholder is not able to collect their refund in person, the merchant will need to fax or mail the form. Upon receiving the signed form back, the merchant should then issue the check via signature required mail. Without a signature proof, the cardholder can still issue a chargeback for “refund not issued”.
– Under no circumstances is a cash refund to be issued regardless of what type of card is used.

—
Bill Hoidas
Consultant Manager Larger B2B/MOTO/Internet Accounts
Product Development Manager
Matrix Payment Systems
(847) 381-3482 office
(847) 381-4289 fax
http://paymentconsulting.net
http://chicago.citysearch.com/review/44659273
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