Chargebacks

What's a Chargeback

Whether you operate a retail or e-commerce business, there is a likelihood that you will eventually always encounter the risk of an unhappy client. When dealing with credit or debit transactions the client has the right to dispute a chargeback for a multitude of reasons such as fraud, failure to deliver goods or services or if they feel mislead by the business practices they were exposed to.

At Payfacto, we understand that being a merchant is difficult when trying to navigate the payment processing landscape and our priority is to help you through it. The following document outlines what happens when a cardholder disputes a transaction, the cardholders’ rights, your rights as a merchant, as well as describe the processes necessary to reconcile a dispute situation from start to finish.

The following document also uses information directly from Visa and Mastercard’s respective guides, so we feel it necessary to include the following disclaimers.

Visa Disclaimer

The information in this guide is current as of the date of printing. However, card acceptance and processing procedures are subject to change. This guide contains information based on the current Visa Core Rules and Visa Product and Service Rules. If there are any differences between the Visa Core Rules and Visa Product and Service Rules and this guide, the Visa Core Rules and Visa Product and Service Rules will prevail in every instance. Your merchant agreement and the Visa Core Rules and Visa Product and Service Rules take precedence over this guide or any updates to its information. To access a copy of the Visa Core Rules and Visa Product and Service Rules, visit www.visa.com and click on Operations and Procedures. All rules discussed in this guide may not apply to all countries. Local laws and rules may exist, and it is your responsibility to ensure your business complies with all applicable laws and regulations. The information, recommendations or “best practices” contained in this guide are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. This guide does not provide legal advice, analysis or opinion. Your institution should consult its own legal counsel to ensure that any action taken based on the information in this guide is in full compliance with all applicable laws, regulations and other legal requirements. Visa is not responsible for your use of the information contained in this guide (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Visa makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party’s intellectual property rights, any warranty that the information will meet your requirements, or any warranty that the information is updated and will be error free. For further information about the rules or practices covered in this guide, please contact your acquirer (Visa, 2018)

Mastercard Disclaimer

Mastercard makes no representations or warranties of any kind, express or implied, with respect to the contents of this document. Without limitation, Mastercard specifically disclaims all representations and warranties with respect to this document and any intellectual property rights subsisting therein or any part thereof, including but not limited to any and all implied warranties of title, non-infringement, or suitability for any purpose (whether or not Mastercard has been advised, has reason to know, or is otherwise in fact aware of any information) or achievement of any particular result. Without limitation, Mastercard specifically disclaims all representations and warranties that any practice or implementation of this document will not infringe any third party patents, copyrights, trade secrets or other rights.

A translation of any Mastercard manual, bulletin, release, or other Mastercard document into a language other than English is intended solely as a convenience to Mastercard customers. Mastercard provides any translated document to its customers “AS IS” and makes no representations or warranties of any kind with respect to the translated document, including, but not limited to, its accuracy or reliability. In no event shall Mastercard be liable for any damages resulting from reliance on any translated document. The English version of any Mastercard document will take precedence over any translated version in any legal proceeding.