What is a Chargeback?
When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. The chargeback initially results in the transaction being reversed and the funds that you received for the payment being returned to the customer.
A dispute is filed, the acquirer will debit the transaction amount from the merchant’s account. The merchant will then need to gather compelling evidence. This will help strengthen their response and prove their innocence from fraudulent activity. The funds will return to the merchant. That is, if the evidence favors an overturn of the cardholder’s dispute.
Chargebacks were introduced as a form of consumer protection against fraud.
Chargebacks as Payment Facilitator
As a Payment Facilitator, the acquirer will debit the charges from your Operating Account. It is up to you to collect the money from the Merchant.
Chargebacks within Finix Payments
Finix Payments takes care of the process of collecting funds from your Merchants when they experience a Chargeback. The acquirer will automatically deduct the chargeback amount from your operating account.
When a chargeback is issued to a merchant, they are automatically debited and that money is placed in the Operating Account.
If the merchant wins their case with the Issuing Bank, Finix Payments will credit the merchant back and debit your Operating Account.
If the merchant loses their case, the amount of the chargeback still resides in your operating account.
Handling Chargebacks in Finix’s Dashboard
1. Navigate to Disputes Page on Finix’s Dashboard
In this page, you can see all the Disputes. You can filter by Dispute ID and Created On date range.
2. Click on a Dispute
Here you can see all the details for a Dispute including the transfers that occurred between your FBO Account, Operating Account, the Merchant Identity, and the Buyer.
3. Upload Evidence File if you choose to represent Merchant
If you choose to represent the merchant, either you or the merchant have the ability to upload evidence files for the dispute. Often, WorldPay asks for additional documentation regarding the order or a shipping receipt. Please review the details of the Dispute.
If your processor is Litle (Vantiv eComm), the evidence files will be submitted automatically to WorldPay.
4. Contact WorldPay
You should contact your WorldPay representative to update them on whether you choose to represent the Merchant or the Buyer.
Chargeback Codes
Visa
|
Dispute Condition Description |
Dispute Condition Code |
Category Code |
Category Code Description |
|
EMV Liability Shift |
10.1 |
10 |
Fraud |
|
EMV Liability Shift Non-counterfeit Fraud |
10.2 |
10 |
Fraud |
|
Other Fraud: Card-Present Environment |
10.3 |
10 |
Fraud |
|
Other Fraud: Card-Absent Environment |
10.4 |
10 |
Fraud |
|
Visa Fraud Monitoring Program |
10.5 |
10 |
Fraud |
|
Card Recovery Bulletin |
11.1 |
11 |
Authorisation |
|
Declined Authorisation |
11.2 |
11 |
Authorisation |
|
No Authorisation |
11.3 |
11 |
Authorisation |
|
Late Presentment |
12.1 |
12 |
Processing Error |
|
Incorrect Transaction Code |
12.2 |
12 |
Processing Error |
|
Incorrect Currency |
12.3 |
12 |
Processing Error |
|
Incorrect Account Number |
12.4 |
12 |
Processing Error |
|
Incorrect Amount |
12.5 |
12 |
Processing Error |
|
Duplicate Processing/Paid by Other Means |
12.6 |
12 |
Processing Error |
|
Invalid Data |
12.7 |
12 |
Processing Error |
|
Merchandise/Services Not Received |
13.1 |
13 |
Consumer Disputes |
|
Cancelled Recurring Transaction |
13.2 |
13 |
Consumer Disputes |
|
Not as Described or Defective Merchandise/Services |
13.3 |
13 |
Consumer Disputes |
|
Counterfeit Merchandise |
13.4 |
13 |
Consumer Disputes |
|
Misrepresentation |
13.5 |
13 |
Consumer Disputes |
|
Credit Not Processed |
13.6 |
13 |
Consumer Disputes |
|
Cancelled Merchandise/Services |
13.7 |
13 |
Consumer Disputes |
|
Original Credit Transaction Not Accepted |
13.8 |
13 |
Consumer Disputes |
|
Non-Receipt of Cash or Load Transaction Value |
13.9 |
13 |
Consumer Disputes |
Mastercard
|
Mastercard Reason Code Description |
Code |
|
Requested/Required Information Illegible or Missing |
2 |
|
Warning Bulletin File |
7 |
|
Requested/Required Authorisation Not Obtained |
8 |
|
Account Number Not On File |
12 |
|
Transaction Amount Differs |
31 |
|
Duplicate Processing |
34 |
|
Card Not Valid or Expired |
35 |
|
No Cardholder Authorisation |
37 |
|
Fraudulent Processing of Transactions |
40 |
|
Cancelled Recurring Transaction |
41 |
|
Late Presentment |
42 |
|
Correct Transaction Currency Code Not Provided |
46 |
|
Exceeds Floor Limit, Not Authorised, and Fraudulent Transaction |
47 |
|
Questionable Merchant Activity |
49 |
|
Credit Posted as a Purchase |
50 |
|
Cardholder Dispute, Defective / Not as Described |
53 |
|
Non-receipt of Merchandise |
55 |
|
Card-Activated Telephone Transaction |
57 |
|
Services Not Rendered -Unwilling or Unable to render services -Payment by other means -Airline flight not provided |
59 |
|
Credit Not Processed |
60 |
|
Counterfeit Transaction Magnetic Stripe POS Fraud |
62 |
|
Cardholder Does Not Recognise-Potential Fraud |
63 |
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