Woburn Electric & Controls, Inc. Credit Card Policy & Terms

How to Prevent Chargebacks

Although there’s no guaranteed way to prevent chargebacks, merchants can take some steps to prevent some kinds of chargebacks from happening. These include:

• If possible, always try to obtain a customer signature for in-person purchases.
• Require a valid government-issued IDs before every credit card purchase, and keep proof of all credit card orders.
• Have a clear, easy-to-understand return policy.
• Have a recognizable business name on credit card statements.
• Use a delivery service that requires a signature upon arrival.
• Train employees on best practices for card-present and card-not-present transactions.
• If you’re taking online orders, be sure to use a payment gateway or online payment processor that verifies the AVS on file for the card being used.
• Accurately describe items. Customers who receive items that are not as described have valid grounds for a chargeback.
• Responding to customer service issues promptly and courteously.

Remember: If you do get hit with a chargeback, it’s important to respond to your bank or payment processor promptly. Many banks will simply process the chargeback for the customer if a merchant does not respond in the allotted time.

FAQ:

• What’s the difference between chargebacks vs refunds?
• What is a chargeback fee or chargeback settlement fee?
• Is there a chargeback time limit?
• Are debit card chargebacks handled in the same way?
• How do I write a chargeback rebuttal letter?

What’s the difference between chargebacks vs. refunds?

A refund is a transaction initiated by the merchant, repaying a customer who is dissatisfied with the goods or service purchased. A chargeback is a dispute initiated by a customer, usually for a fraudulent transaction. In a chargeback, the transaction is reversed and funds are returned to the customer by the merchant’s bank.

What is a chargeback fee or chargeback settlement fee?

A chargeback fee, or chargeback settlement fee, is an additional fee your credit card processing company may charge you, in addition to the reversed funds, if they find you at fault for a chargeback. Many payment processing companies may disallow you from accepting credit cards entirely if you have an unusual amount of chargebacks on your account.

Is there a chargeback time limit?

Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. For most cards, this stands at 120 days, starting from the day your customer registers the issue, though this can vary between card providers.

Are debit card chargebacks handled in the same way?

Debit card chargebacks are dealt with in a similar way to credit card chargebacks, though credit card payments may be further protected by Section 75 where disputes must be made with the credit card company rather than each individual’s bank.

How do I write a chargeback rebuttal letter?

If you’re a merchant who’s been charged with a fraudulent chargeback, you’ll be given a retrieval request, this is when the card-issuing bank of the customer involved verifies the possibly fraudulent nature of the purchase. The window of time in which to clear up any dispute is relatively short, if you do not respond promptly enough, the bank will simply grant the chargeback.

If you believe a chargeback to be fraudulent, you will need to provide the evidence that proves it. Proof you may wish to put forward for your case include:

• Receipts or invoices
• Proof of delivery confirmation, particularly with signature
• Proof that the item was acceptable (the customer used the item, didn’t complain upon delivery, etc.)
• The correct recording and delivery of the customer’s CVC or AVS

The good news is, if you sell with Square, you never need to worry about going through this alone. We will contact you for the information needed to clear the dispute and help you fight against any fraudulent claim.

Chargeback Reason Codes

• For American Express
• For Visa
• For Mastercards

Chargeback Reason Codes List for American Express Chargeback Code Authorization Errors A01 Charge Amount Exceeds Authorization Amount A02 No Valid Authorization A08 Authorization Approval Expired Chargeback Code Type: Fraud F10* Missing Imprint F14* Missing Signature F22 Expired or Not Yet Valid Card F24* No Card Member Authorization F29 Card Not Present Chargeback Code Type: Card Member Dispute C02 Credit (or Partial Credit) Not Processed C04 Goods/Services Returned or Refused C05 Goods/Services Cancelled C08 Goods/Services Not Received C14 Paid by Other Means C18 “No Show” or CARDeposit Cancelled C28 Cancelled Recurring Billing C31 Goods/Services Not as Described C32 Goods/Services Damaged or Defective M10 Vehicle Rental – Capital Damages M49 Vehicle Rental – Theft or Loss of Use Chargeback Code Type: Processing Error P01 Unassigned Card Number P03 Credit Processed as Charge P04 Charge Processed as Credit P05 Incorrect Charge Amount P07 Late Submission P08 Duplicate Charge P22 Nonmatching Card Number P23 Currency Discrepancy Chargeback Code Type: Inquiry Related Chargeback R03* Insufficient Reply R13* No Reply M01* Chargeback Authorization Code Type: Chargeback Programs FR2 Fraud Full Recourse Program FR4 Immediate Chargeback Program FR6 Partial Immediate Chargeback Program

*These American Express chargeback codes require an inquiry first.

Retrieved on 5/26/2016 from AmericanExpress.</sub>

Chargeback Reason Codes List for Visa Chargeback Code Chargeback Reason 30 Services Not Provided or Merchandise Not Received 41 Cancelled Recurring Transaction 53 Not as Described or Defective Merchandise 57 Fraudulent Multiple Transactions 62 Counterfeit Transaction 71 Declined Authorization 72 No Authorization 73 Expired Card 74 Late Presentment 75 Transaction Not Recognized 76 Incorrect Currency or Transaction Code or Domestic Transaction Processing Violation 77 Non-Matching Account Number 80 Incorrect Transaction Amount or Account Number 81 Fraud—Card-Present Environment 82 Duplicate Processing 83 Fraud—Card-Absent Environment 85 Credit Not Processed 86 Paid by Other Means

Visa chargeback reason codes retrieved from Visa.com on 5/26/2016.</sub>

Detailed Chargebacks Reason Codes List for Mastercard

Mastercard chargeback codes fall in to four categories:

• Authorization
• Cardholder disputes
• Fraud
• Point-of-interaction error

Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorization Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate Processing 4835 Card Not Valid or Expired 4837 No Cardholder Authorization 4840 Fraudulent Processing of Transaction 4841 Canceled Recurring Transaction 4842 Late Presentment 4846 Correct Transaction Currency Code Not Provided 4847 Requested / Required Authorization Not Obtained and Fraudulent Transaction 4849 Questionable Merchant Activity 4850 Credit Posted as Purchase 4853 Cardholder Dispute – Defective / Not As Described 4854 Cardholder Dispute – Not Elsewhere Classified (U.S. Region Only) 4855 Non-receipt of Merchandise 4857 Card-Activated Telephone Transaction 4859 Services Not Rendered 4860 Credit Not Processed 4862 Counterfeit Transaction Magnetic Stripe POS Fraud 4863 Cardholder Does Not Recognize – Potential Fraud 4870 Chip Liability Shift 4871 Chip / PIN Liability Shift

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Woburn Electric & Controls, Inc.

Woburn, MA 01801

Last Modified __20 March 2024___