Blog

What to do when clients press through their banks to obtain payment refunds?

What to do When clients through press banks to Obtain Their payment refunds?

Frustrated Man With His Hands On His Face

Customer complaints are part of the reality of accepting payments, which does not make them any
less frustrating. Refunds of charges are the result of a
customer question or dispute a transaction with your issuing bank. This raises the supporting customer and attaches to the reimbursement category using the relevant reference, claim specific network card.

There are
151 reference codes reimbursement  ( in English ) in the four major card networks. The good news for those who use Shopify Payments, is that hundreds of references reimbursement are condensed into eight different categories. Those who do not use Shopify Payments, see references the same categories of reimbursement represented in the reference format original claim.

By understanding the reference associated with the refund claim, you can send a response including appropriate justification.
In this post, we will review the categories of reference claim that traders will try more often, references to specific claims associated with each category and what reasons include sending a response.


For most traders, refunds for fraudulent charges represent most of the complaints they receive from customers.
Among the references claim reimbursement used to categorize fraudulent chargebacks we
(in English) : the reference claim from American Express 193 , the reference claim Visa 83 , the reference claim of MasterCard 4863 and reference claim of Discover 6040 .

However, just because a refund or chargeback is encoded as “fraud” or “unauthorized” does not mean it really it has been a fraud.
How can I protect much of this type of fraud? Checking the IP address of the client, investigating failures System (AVS Address Verification) or CVV (Security Code Card) and using risk analysis features of Shopify.


So why are happening these
refunds for fraudulent charges ? Because the disputed transaction was not actually fraudulent. In fact, the real fraud represents only 29% of total losses on fraud in electronic commerce. The remaining 71% of the losses comes from billing fraud and friendly fraud. Fortunately, when sending a response about referrals claim reimbursement – encoded as a fraud – you can win reimbursement and recover the transaction value.
What to include in your answer?

The way you respond to reimbursement for fraudulent charges depends on
the type of business and the circumstances of the transaction carried out. If you obtained the authorization of the cardholder and he used AVS and CVV, your answer must contain at least the following:


Apart from the mandatory minimum supporting required, you can also (and should where applicable) provide evidence such as photographs, emails, or another way to try and / or display:


traders who sell digital products have a little convincing evidence that may have to respond to a refund of charges categorized as fraudulent.
The response refund charge must include a description of the goods unloaded Internet, the date and time of discharge and at least two of the following:


Refunds of unrecognized charges are very similar to the fraudulent user charges, as the cardholder does not recognize a transaction on your statement.
Except that in this case the cardholder not initially believe that your account information has been compromised. Refunds of charges, resulting from unrecognized transactions are represented by multiple references claim, including those found
(in English)MasterCard Reference claim 4837 , Discover Card Reference claim UA38 and Visa Reference claim 72 , including . Requests for reimbursement where the holder fails to recognize the trader must – in most cases – to poor descriptions of the business establishment.

If you are
using
providers of payment services , which add and cover multiple services such as payment gateway, the system to process and acquire funds from a bank, such as Shopify Payments, Stripe or PayPal take much space before has mentioned your business, so when developing the commercial description of your establishment – try to be as brief as possible without being confusing or puzzling. The Shopify Payments System * SP ingeniously uses only booking five characters for you.
Screenshot of TrusthPaste merchant description

For example, the description merchant TruthPaste is: SP * CA 95959 US 5303885883 TRUTHPAST.COM.
Where truthpaste.com represents the URL for the business and 530-388- 5883 indicates the contact phone number.


To effectively prevent most cases of reimbursement user charges not recognized, it is best to
have a clear description trader. However, for those who still have this kind of problem, they must deal with responding to requests for reimbursement of unauthorized charges to the user, in the same manner in which you respond to claims surcharge classified as fraudulent charges. Therefore, if you obtained the authorization of the cardholder AVS and CVV and used, you must provide the following:


The billing subscription service can be a success for merchants receiving periodic payments.
However, these traders are not exempt from having to make refunds related to subscription billing disputes. In this case, the client notified the cancellation of recurring payments, but continued to charge you in the next billing cycle.


If you are a trader who makes a subscription billing service or merchandise, they could be related to billing subscription service refunds, which are not classified under the rubric of Shopify “unsubscribed”.
For example, customers may not recognize the description of the merchant on your monthly statement, and will appear as “unrecognized”. Or, the recorded data card customer credit card has expired or is not yet valid at the time of the transaction for the subscription billing occurs, so refunds or user charges to -Product this situation – probably They are reflected by the reference “General”.


Response to a request for reimbursement of charges for subscribing to a service depends on the unique circumstances of the transaction in question.
In some cases, a client may sorry contacted to unsubscribe, but because of the conditions of your subscription cancellation policy, this would not be effective until after the next billing cycle. This situation is referred to in
(links in English)  Visa cards with the reference of claim 41 , MasterCard claim with the reference 4841 , American Express cards with reference claim 4544 or Discover cards with the 4541 reference claim . If the customer disputes this transaction, you must provide:

Instead, it could give the client ‘s
case did not contact you to cancel your subscription. In this case, you must provide documentation showing that the subscription was not canceled and that neither your bank nor you were notified of the cancellation of the subscription. This documentation usually includes one of the following tests as a formal justification for rejecting the chargeback:


If digital goods were provided:


In the case of refund for
product not received , the client actually received the goods you bought. You could say that shipping is the biggest challenge of electronic commerce. Traders who do not have a solid shipping policy and contract compliance can be prepared to deal with this category of chargeback very often.

Each network card has its own references claim to represent customer disputes, in which the cardholder claims he never received the products or services:
American Express card reference claim 155Visa card reference of claim 30 , MasterCard claim reference 4855 and reference card claim Discover 4755 .

Winning this type of refund requires proof that the customer received the product, service or digital goods before the date on which the transaction is denied.
However, to provide evidence, it all depends on what type of merchandise sold to the customer.


If it comes to shipping physical goods, including:


If digital goods are provided, including:


if the transaction occurred digitally, and a service was provided offline, including:


Withdrawals by way of ”
unacceptable product ” means that the client believes that the merchandise arrived damaged received was defective or did not match the description of the merchant at the time of the transaction. A customer may also consider the goods as unacceptable, if you think there is low quality, which is an imitation or if the terms of the sale were not transparent. These kinds of disputes can be represented , among others – by reference claim C31 for American Express cards , the reference of claim 53 for Visa , reference 4853 for MasterCard claim or the claim reference 4553 Discover card .

For honest traders, this type of chargebacks is often the result of insufficient descriptions of the product or return policies stricter.
Descriptions of your products must be complete with all relevant specifications – do not forget to descriptions as accurate as possible of the product for sale.


These rebates can also come from customers trying to
make a legitimate return of the goods and was denied because of your return policy. Subsequently they dispute the purchase claiming that the product is unacceptable. Have strict return policies are often counterproductive, especially when it comes to refunds, since a return policy designed customer can preserve lasting relationships with them.


In most cases reimbursement related to the product, which the customer claims that the goods do not correspond to the description, the following irrefutable evidence will
show better than the dispute is invalid: In


addition to the above justifications, you must provide documentation additional based delivery method:


If physical goods are sent, include:


If digital goods are provided, including:


If the transaction is produced digitally, in which an offline service was provided, including:


Did you touched deal with credit card withdrawals in the past?
Tell us in the comments section!

 
Scott Stone is marketing manager Chargeback , the leader in preventing recovery costs and management software solution company. With an experience of over a decade in sales and marketing, the focus of analysis Scott is helping merchants of all scales to obtain profitability and success.
Translation and adaptation: 
Elizabeth Pestana is a freelance translator interpreter with 13 years of experience, studies in buying, selling and accounting, flower lover, garden and kitchen. 

It would be terrific 2 things: That the blog in Spanish enable DISQUS as the blog in English and the other is the opinion in this issue of Conekta.com


Hi Mauricio,


Thank you
for your comment. We have already enabled Discus in Spanish, but only from articles published in the last month.


Regarding Conekta not know exactly what your concerns.
It would be better if you could send your question to soprote@shopify.com


Greetings



Related Posts

You may like these post too

Elektro, the first robot in history and a symbol of progress

How to take advantage of a transactional email marketing campaign

Leave a Reply

it's easy to post a comment