What is a chargeback?

Chargebacks are transactions that are disputed by the cardholder or the cardholder's card issuing institution. A chargeback occurs when a cardholder disputes a charge or when proper card acceptance and authorization procedures were not followed. When a merchant receives a chargeback, its deposit account is debited for the indicated amount. In addition to the chargeback, the merchant may incur a fee if he failed to follow card acceptance and authorization procedures. Reasons for chargebacks include a cardholder dispute or an error in handling on the part of a merchant's staff. Obtaining proper authorization and adhering to correct processing procedures can minimize chargebacks.

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What do I do if I receive a chargeback?

You will be notified by NCR Payment Solutions' Dispute Processing department that one of your customers is disputing a sale that you previously processed. You will receive a debit advice that will provide details of the dispute and what you need to do in order to rebut the claims your customer is making against you. It is important to be as detailed as possible when filing a rebuttal. Attaching evidence that shows the sale was legitimate is important. If your evidence provided is sufficient to refute the claims made by your customer, your bank account will be credited for the amount of the chargeback that was previously debited. You may not win the chargeback even if it is reversed. Your customer has broad dispute rights under Federal laws. This may not prohibit you from pursuing him/her in civil court however. If you should have any questions, please do not hesitate to call our Chargeback Customer Service number at 877-453-8729.