“My customer’s chargeback was closed due to X,Y,Z.. What does this mean?”
- Accepted in Lieu of Refund:
If the Merchant attempted to refund the cardholder, but the refund has failed due to an incoming chargeback, the chargeback will become the refund. The customer will keep the disputed funds. The Merchant is only debited once (for the chargeback). The attempted refund will be credited back to the remit.
- Third Party Collections:
We cannot pursue a case that is currently in collections due to legal concerns. Laws vary from state to state, but generally speaking, a collections company pursuing an active chargeback is considered harassment. To the best of our ability, we provide a 10-day grace period before case evaluation. During this time, the account can be removed from 3rd party (with disputed invoices ACTIVE, agreement remaining cancelled), or prevention of falling into 3rd party by cancelling the agreement (keep invoices active). If it is not in 3rd party by the scheduled case evaluation date, we are able to review it.
- Chargeback Has Been Flagged as Fraud by the Processor, and There are No Rights to The Dispute:
This means that the cardholder reported fraudulent activity on their account. The Issuer will ask the cardholder to verify transactions posted within a specific period. If they state that charges a,b,c, were not made by them, under the card brand’s zero fraud liability protection, they will dispute all items and send them a new credit card. In these instances, we cannot dispute charges when fraud has been reported, regardless of if we have a signed agreement or service usage. These types of disputes do not give us the option to respond, unfortunately.
- Club Cancelled Invoice:
As stated in the chargeback notification email, if the Merchant’s does not wish to pursue a chargeback, they simply need to cancel the invoice. When we see a cancelled invoice, this automatically signals us to close the case.
- Contract Names Minor Child as Buyer:
The member using the services may be under the age of 18, however, a legal adult must sign as the “Buyer” on the contract. Agreements with buyers under the legal age are invalid.
- No Signed Agreement:
We are required to provide proof that at the time of purchase, the terms and conditions of the membership/purchase were properly disclosed to the cardholder, and that the cancellation policy (if any) was clearly stated. If there is no agreement on file, or if the cardholder has not made a reasonable attempt at a legible signature, the case is ineligible for representment.
- Paid by Other Means:
The disputed invoice was repaid to the Merchant prior to our analysts case evaluation. The Merchant is now whole, resolving the dispute.
- Transaction Amount:
There is a threshold amount of $26.00 to meet criteria for representment to the Issuer.
- No Signed Cancellation, No Services Used After Transaction in Dispute:
Commonly under reason code 13.2. In order to provide the evidence required by the Issuer, the Merchant must disprove the cardholder’s claim of cancellation.
One of the following must apply:
- The charge was not for a recurring transaction, but instead a part of a set payment schedule during an initial term (3/6/12 month terms, PIFs).
- The cardholder continued to use services after the payment in dispute.
- A cancellation form was signed by the cardholder.
If at least one of these does not apply to the cardholder’s account, we do not have sufficient evidence to meet the compelling evidence requirements.