Frequently Asked Questions

There are two general locations within the chargeback process flow where chargeback tools fit: between the initial cardholder complaint and the formal chargeback, and during the representment process. Chargeback prevention tools—alerts, Order Insight, Consumer Clarity, Rapid Dispute Resolution, etc.—fall into the former category while tools for fighting chargebacks fall into the latter.

Chargebacks are not like regular transactions such as payments, debt, or refunds. There are specific, unusual attributes of chargebacks that can make them particularly difficult for accountants to properly log and track. These include the fact that chargebacks occur at irregular intervals, take a long time to process, involve multiple processes with multiple different outcomes, are processed differently by different kinds of banks, and include additional fees beyond the transaction amount itself.

Chargeback laws and procedures generally favor cardholders over merchants. Issuing banks, in particular, have an incentive to side with their cardholders in a dispute. Thus, a bank may not thoroughly investigate a dispute if the merchant does not provide evidence and arguments as to why a chargeback was wrongly filed.

Depending on the circumstances of the transaction, policies of the card brand, and whims of the various stakeholders in the transaction, a cardholder dispute can take numerous forms and have multiple possible conclusions. But the most consequential outcome, from a merchant’s perspective, is a chargeback. Preventing chargebacks, fighting chargebacks, and generally managing chargebacks requires a thorough understanding of the chargeback process

Chargeback rebuttal letters can be written from scratch by the merchant, written based on templates available online, written by outsourced chargeback management solution providers, or created through the use of a dynamic chargeback representment tool. An effective chargeback rebuttal letter should concisely frame your response to the chargeback. It provides any necessary information to identify the transaction, addresses the specific claims that the cardholder has presented, and outlines what supporting evidence will be provided. It also explains what outcome you are seeking.

Yes. Visa’s 3-D Secure is a fraud prevention security protocol for online credit card payments. It facilitates the exchange of customer information between acquirer and issuer whenever a customer makes an online purchase. This allows merchants to confirm the identity of a customer, cutting down on identity fraud and reducing the frequency of “unauthorized transaction” chargebacks.