American Credit Card Processing Chargeback Remedies

Even when an American credit card processing account user receives a chargeback, it could still be able to get it resolved it without losing the sale. It will have to provide its merchant processing services provider with additional information about the sale or the actions it has already taken related to it. For instance, it could receive a chargeback due to the customer claiming that a refund has not been issued for a returned item. It may be able to resolve the dispute by offering proof that it had issued the refund on a specific date. These data should be sent to the merchant account provider in a timely fashion.

The most important thing in this and similar instances is to always send to the acquiring bank as much data as possible to help it cure the chargeback. With adequate information, the acquirer may be able to resubmit, or "re-present," the sale to the card issuer for payment.

Timeliness is also crucial when American credit card processing account holders attempt to cure a chargeback. Each step in the chargeback process has a pre-defined time frame, within which action needs to be taken. If the retailer or its acquiring bank does not respond to the request during the specified time frame, which can vary depending on the acquiring bank the merchant will not be able to cure the chargeback.

Even though most chargebacks are resolved without the retailer losing the sale, some of them cannot be remedied. In such instance, accepting the chargeback may be the best option, saving the merchant the time and expense of needlessly fighting it.

Card-not-present American credit card processing account holders should be familiar with the chargeback re-presentment rights that are associated with the use of the Address Verification Service (AVS), the card security codes, and with the option to provide solid information. More to the point, the acquiring bank can re-present a charged-back transaction if:

• The retailer received an AVS positive match and if the billing and shipping addresses are identical.
• The retailer submitted an AVS or security code request and received a "U" response code. These response codes mean that the card issuer is not available or does not support AVS or security codes.

Verified by Visa participating retailers are protected by their acquiring bank from receiving some fraud-related chargebacks. If merchants are not participating in Verified by Visa at the present time, they can contact their processor for details on enrolling.