Questions and answers about chargebacks or disputed transactions?

What is a chargeback?

In a chargeback, a transaction has been carried out with, for example, a Mastercard, VISA or Amex card after which the customer demands money back through the bank. Another word for chargeback is dispute. The transaction is reversed and the customer gets the money back via the bank. Have you received a chargeback? If so, you don't have to initiate a refund yourself.

Why will I receive a chargeback?

Often, when you think of a chargeback, you think of a fraudulent transaction. But in most cases, the customer disagrees with a transaction. If a transaction is disputed, this is reason to investigate the customer's underlying reason. The reasons can vary:

• The customer was accidentally double-charged and did not receive a refund.
• The customer has not received the goods/services.
• There is a dispute between you and the customer.

How do I know my customer has submitted a chargeback?

When your customer submits a chargeback to the bank, CCV receives a notification from the bank. After this, CCV (as acquirer/payment facilitator) sends you a request for more information. This message contains the following information:

• Transaction
• Amount
• Currency
• Dispute (description or reason)
• Date and time

With this data, you can provide the necessary information (such as a legible copy of the transaction receipt) to CCV.

What should I do if I receive a chargeback?

Before we inform you about the chargeback and the steps to be taken, CCV has already assessed the chargeback. This could mean, for example:

• CCV rejects the chargeback without your assistance, for example because a refund has already been made.
• CCV asks you to provide certain evidence to reject the chargeback.
• CCV cannot reject the chargeback because it is justified or because the evidence provided is insufficient.

We will always do our best to handle chargebacks with your best interests at heart and within the applicable regulations of the card companies.

How can I avoid a chargeback?

The best way to avoid chargebacks is to ensure that customers have no reason to file one. You can achieve this by having transparent and legally correct terms and conditions and resolving any issues in good consultation with the customer. Make sure you are always available for questions or complaints so that customers contact you first before filing a claim. Here are some tips:

• The transaction receipt is the most important proof. So keep it well!
• Make sure the return policy is visible on the receipt or have your customer sign for the terms and conditions.
• Make sure customers are satisfied with their purchase and the service, to minimise problems and chargebacks.
• Offer quick refunds if the goods or services delivered do not meet expectations, to avoid chargebacks.
• Handle refund requests from customers quickly to avoid chargebacks.
• Communicate clearly and honestly about delivery times and the quality of products or services to avoid disappointment.
• Respond quickly when the card issuer requests additional information to speed up the process.
• Act immediately when you receive notification of possible fraud by refunding the transaction immediately to avoid further complications.

Beware of so-called ‘friendly fraud’ or fraudulent chargebacks.

In the process, legitimate transactions are wrongly flagged as fraudulent.

• Choose a reliable payment partner.
• Contact the buyer before delivery or transfer to avoid any problems.
• Keep a close eye on legitimate transactions identified as fraudulent.

Dispute a chargeback?

If you decide to dispute a chargeback, collect all contact moments with the customer to support your position. For example, if the cardholder claims not to have been involved in a transaction, you can provide the following evidence:

• Documentation of previous, uncontested purchases.
• Proof of delivery or handover to the cardholder.
• Correspondence with the customer.

What is the financial impact of a chargeback?

When a chargeback is received, the original transaction is reversed. CCV will collect the amount due from you. The costs of a chargeback vary per card company. Depending on the investigation, CCV can recover the costs from you in accordance with the Delivery Terms and Conditions. If you still have questions, please contact CCV.