The term "Chargeback" refers to a returned transaction resulting from the lack of adherence to the conditions of the Sales Agreement, Association regulations, or these Operation Procedures, and result in the debiting of your merchant account.

Your merchant account may also be debited in the event the bank is required to pay bankcard Association fees, charges, fines, penalties or other assessments as a consequence of your sales activities. Such debits shall not be subject to the limitation of time specified elsewhere in the Sales Agreement or these Operating Procedures.

We may cause your bank account to be debited for the actual or contingent Chargeback amount owed to the bank, pursuant to the Sales Agreement between you and the bank. The process is by virtue of an ACH Agreement between you and the bank.

If you have further questions, please click here.

A card member, or the card-issuing bank, has the right to question or dispute a transaction. In most cases, before a Chargeback is initiated, the card issuing bank requests a copy of the sales record, via a "Media Request" or "Retrieval". Once a Media Request or Retrieval is received from the card issuer, we will respond by sending a copy of the transaction, if available.

If the information provided is sufficient to warrant a reversal of the Chargeback, and within the applicable timeframe, we will do so on your behalf, but reversal is contingent upon acceptance by your customer's card issuing bank under Visa and MasterCard guidelines. If the Chargeback is reversed, the card-issuing bank does have the right to re-present the Chargeback a second time.

If the charge is not disputed within the applicable time limit set forth by MasterCard and Visa regulations, reversal rights are lost. Our only alternative, on your behalf, is to attempt a "good faith collection" to the card-issuing bank. You will receive only the amount, if any, recovered from the card member's bank.

Association rules and regulations require that a merchant must make a good faith attempt and be willing and able to resolve any disputes directly with the cardmember. It is a violation of Association rules and regulations to re-bill a customer for a transaction that was charged back.

If you have further questions, please click here.

1. Cardmember or card issuer requests a copy of the sales record.

To Avoid: Prepare and maintain legible sales records with complete sale and authorization information and/or respond to media retrieval request within the required timeframe.
To Dispute: Within twelve (12) days of the date you were debited fax or mail us a copy of the sales record.

2. Cardholder did not authorize the transaction (primarily for mail/telephone/Internet orders; recurring transaction [repetitive billing]; pre-authorized health card transactions).

To Avoid: Mail/telephone orders -- follow recommended procedures defined in this Operating Procedures Guide. Recurring transaction -- ensure your customers are fully aware of the condition of the type of transaction. Use Address Verification Service.
To Dispute: Within twelve (12) days of the date you were debited: Provide a copy of sales record, invoice, or order form. Provide a signed delivery receipt (UPS, Fed Ex, etc.) showing name and address the merchandise was delivered to if available. Provide a signed form and/or invoice acknowledging cardmember's participation in a recurring transaction. If possible, contact the cardmember directly to resolve the inquiry/dispute. Submit a letter in writing with supporting documentation stating why you believe the Chargeback may be improper or invalid.

3. Non-matching account number (transaction was processed on an account not found on an issuer's master file).

To Avoid: Mail/Telephone/Internet Orders -- If possible, contact the cardholder to verify the account number or request another form of payment. If an incorrect number was used, re-authorize and re-deposit the transaction using the correct number. To Dispute: Within twelve (12) days of the date you were debited: Provide a copy of sales record. Submit a letter in writing with supporting documentation stating why you believe the Chargeback may be improper or invalid. If possible, contact the cardmember to verify the account number or request another form of payment. If an incorrect number was used, authorize and redeposit the transaction using the correct number.

4. Transaction was processed more than once to the same cardmember.

To Avoid: Settle and reconcile daily. Ensure that the total amount settled and submitted balances with the credit card records of the transactions. To Dispute: Within twelve (12) days of the date you were debited: Provide two different sales records. Submit a letter in writing with supporting documentation stating why you believe the Chargeback may be improper or invalid.

5. Credit not processed -- the cardmember is claiming that a credit voucher or refund acknowledgment issued by you was not processed.

To Avoid: Process credits daily. All credits must be applied to the account to which the debit originally posted. Do not issue in-store or merchandise credit. To Dispute: Within twelve (12) days of the date your were debited: Provide a copy of the credit record, date credit was processed, and the deposit total that included the credit. Submit a letter in writing with supporting documentation stating why you believe the Chargeback may be improper or invalid.

6. No authorization.

To Avoid: Authorize all transactions. To Dispute: Within twelve (12) days of the date you were debited: Submit a letter in writing with supporting documentation stating why you believe the Chargeback may be improper or invalid and include any authorization data that you may have. If you used a third party (i.e., American Express) to authorize, you must contact them immediately for proof of authorization (e.g., authorization log) and submit to us.

7. Non-receipt of merchandise -- cardmember is claiming they did not receive the merchandise or merchandise was paid for by other means.

To Avoid: Do not process a transaction until merchandise is shipped. If a customer has paid for merchandise by another method, do not process the transaction. To Dispute: Within twelve (12) days of the date you were debited, provide proof that the merchandise was received (i.e., UPS, Fed Ex, etc. tracer and delivery receipt; signed invoice, customer name and delivery address). If possible, contact the cardmember directly to resolve the inquiry/dispute. Submit a letter in writing to Banc One Payment Services with supporting documentation stating why you believe the Chargeback may be improper or invalid.

8. Card used before effective date of after expiration date.

To Avoid: Do not process a transaction prior to the effective date. Do not process a transaction after the expiration date. To Dispute: Provide a printed sales record, invoice, or order form showing that the transaction was processed after the effective date or before the date of expiration. Submit a letter in writing to Banc One Payment Services with supporting documentation stating why you believe the Chargeback may be improper or invalid. If possible, contact the cardmember for another form of payment.

The following is a list of reasons for other Chargebacks. We may add to or delete from this list as changes occur in the Association rules or operational requirements:

1. Services not rendered: Merchant did not provide services. Services were paid by another method (i.e., cash, check, or another card).
2. Error in addition was made when calculating transaction amount.
3. Incorrect or invalid account number.
4. A valid authorization was not obtained for a transaction and cardmember neither authorized nor participated in transaction.
5. Cardmember credit was posted/processed as a debit or a debit was posted/processed as a credit.
6. Transaction was processed for an incorrect amount.
7. Not as described: goods or services received by the cardmember did not match merchant's written, mail/phone/Internet order or merchant's verbal description.
8. Claim or defense: local, state and/or federal law required the card issuer to credit a cardmember's account and no other Chargeback right was available (cardmember tried to resolve dispute with the merchant and was still dissatisfied).
9. Defective merchandise: shipped merchandise was received in defective condition or otherwise unsuitable for purpose sold.
10. Several drafts (sales records) were imprinted at same merchant location but cardmember acknowledged participation in only one transaction.
11. Counterfeit transactions.
12. Account number was listed on the exception file.
13. Transaction was completed after authorization was declined.
14. Transaction was not processed within MasterCard or Visa timeframes.
15. No (card member) signature was obtained and cardmember neither authorized nor participated in transaction, or no outstanding valid card exists.
16. Cardmember claims merchant changed amount of transaction (sales draft) without permission.
17. Fraudulent transaction occurred with a merchant who has a prior history of fraudulent transactions.
18. Limited amount terminal (terminal is specifically programmed for specific type of merchants) transaction exceeded limited amount.
19. Authorization code invalid.
20. Suspicious transaction, e.g., knowingly participating in a fraudulent transaction.
21. Invalid sale: lost/stolen, counterfeit/altered or other invalid transaction which although correctly authorized, may be charged back in full or in part in accordance with MasterCard International or Visa, USA regulations.
22. Cardmember was denied right to return item.
23. Cardmember cancelled order, cancellation number received.

If you have further questions, please click here click here.

In order to quickly resolve disputed Chargebacks, debits, and summary adjustments, it is extremely important that these issues/items be sent to the address on the request. (If the Summary Adjustment is for unreadable or incorrect card member number, resubmit the corrected sales record with your next deposit. Also, if the transaction is over thirty (30) days, you must reauthorize.)

The following information should be obtained from your files:

1. Clear and legible copy of the sales record showing:
   • Date of sale/credit.
   • Card member's account number.
   • Cardholder's name.
   • Total amount of the sale Description of goods and services.
   • Date and authorization approval code.
2. A dated cover letter detailing the reasons for requesting a review of the Chargeback, debit, or summary adjustment and documentation to support your dispute should accompany your sales record. (You should retain a copy of the correspondence and all documentation for your files.) If the inquiry is related to prior correspondence, be sure to include the control number we used previously.

Immediately submit the sales/credit records, all documentation, and your letter.

If you have further questions, please click here.

If you have a change in any of the following: DDA Number (Checking Account), Legal Name or Structure, Company DBA Name, Address, Telephone or Fax Number, please call your account manager immediately for an Electronic Funding Agreement that must be completed before a change can be made.

If you have further questions, please click here.

If you receive a paper statement, the following guide reviews important features of the statement:

1. Your statement mailing address.
2. Key information including your merchant number, the statement period, and the bank accounts into which we deposit you money and deduct your fees.
3. The customer service phone number for any questions you may have.
4. The address of the store location for this statement.
5. The Outlet Funding Summary is the core of the statement and brings your deposited batches, deductions, and checking account deposits into one consolidated report.
6. The Deposit Summary columns provide summary information on your deposit activity by day.
7. The Financial Summary columns provide the fees and adjustments to your account due to Chargebacks, Chargeback Reversals, Interchange and Assessment Fees, Discount, Other Fees and Financial Adjustments.
8. The Fund Date is the date your deposit was processed for funding.
9. The Total $ Submitted is the net dollar amount of your batch deposits for the day.
10. The Total $ Funded indicates your bankcard deposits that were funded.
11. The $ Paid by 3rd Party indicates your non-bankcard deposits you were funded for in a separate deposit to your DDA (for example, American Express and Discover).
12. The Net $ Funded is the net amount that was deposited into or deducted from your account on the Fund Date.

If you have further questions, please click here.

You must promptly complete and submit a credit transaction (with your name, city, state, and merchant account number) for the total amount of the refund due a cardmember. Full refunds must be for the exact dollar amount of the original transaction including tax, handling charges, etc. (You must identify the shipping and handling charges incurred). A description of the goods or services is required. Failure to process a credit within five (5) calendar days may result in a Chargeback. Authorization is not required for refunds. You cannot intentionally submit a sale and an off setting credit later solely for the purpose of debiting and crediting your own or a customer's account.

If you have further questions, please click here.

If you process recurring transactions and charge a cardmember's account periodically for recurring goods or services (e.g. subscriptions, membership fees, etc.), the cardmember shall complete and deliver to you a written request for such goods or services to be charged to his account. The written request must at least specify the:

• Transaction amounts
• Frequency of recurring charges
• Duration of time for which the cardmember's permission is granted.

You must retain the written request for the duration of the recurring services.

If the recurring transaction is renewed, the cardmember shall complete and deliver to you a subsequent written request for the continuation of such goods or services to be charged to the cardmember's account.

You must not complete a recurring transaction after receiving a cancellation notice from the cardmember or a response to an authorization request that the card is not to be honored.

If you have further questions, please click here.  

You must retain the following:

• The cardmember's account number
• The expiration date
• Date of transaction
• A description of the goods and services
• The amount of the transaction (including shipping, handling, insurance, etc.)
• The card member's name, billing address and “ship to” address.
• Authorization code
• Merchant's name and address (city and state required)
• Itemized charges
• AVS response code

For mail/telephone/Internet order authorization inquiries, you must obtain the expiration date of the card. If a cardmember's account is invalid, the sale will result in a summary adjustment, electronic reject, or a Chargeback. On the sales record information, denote that the transaction was via Internet. Utilization of Address Verification Service (AVS) is necessary for Internet transactions. You may not submit a transaction for processing until after the merchandise has been shipped or the service has been provided to the customer. (Visa will permit the immediate billing of merchandise manufactured to the customer's specifications, (i.e., special/custom orders) provided the cardmember has been advised of the billing details). Notify the card member of delivery timeframes, special handling or of a cancellation policy. If, after the order has been taken, additional delays will be incurred (e.g., out of stock), notify the card member.

If you have further questions, please click here.