What is a “dispute” transaction?

A ‘dispute” happens when the cardholder (customer) disagrees with the product offered or service provided by you (merchant). As the cardholder exercises their rights, they usually follow up by asking for a refund (chargeback). Once the cardholder files a dispute, based on the card network report (Visa, MasterCard, etc), Mobiversa will initiate an investigation.

Why does my customer chargeback against me?

A chargeback can be related to dissatisfaction of the purchase or poor delivery of customer experience. Also,It may be filed for suspect fraudulent transactions involving their card.

Most commonly

Fraud

Cardholder claims they did not authorize the purchase or identity theft etc.

Authorization

Expired authorization, or technical error, etc.

Processing Errors

Duplicate transactions, incorrect amount or refund not issued, etc.

Consumer Disputes

Customer claims for not receiving the goods or goods that did not match what they expected, etc.

How chargeback affects my business?

A cardholder has a time frame of 120 days to file a dispute or chargeback, which means the transaction could be reversible within the 120 days window. It is best to avoid all chargeback, as acquirers, banks, and card networks may label your business as a fraudulent or high-risk. If the number of chargebacks is excessive, acquirer or banks may withhold remittances of payment. Also, you may be charged a penalty or a fine for each chargeback received as part of the card network compliance.

How to minimize chargebacks?

A chargeback is a cost, which can be avoided or minimized.

Here are a few tips:

Be transparent and disclose your “Terms & Conditions”. Clearly mention your return, refund or cancellation policies on the website. Keep your customer updated. Constant and clear communication, provide helpful customer service. Keep Docs. Share tracking numbers, orders, invoices, and other related docs.