Applies to: Broadlume Payments
Covers how to handle disputing chargebacks from cardholders in the Broadlume Payments web portal
Does not cover: Cyncly Payments, Cyncly Pay, or Payments Flex
Blog post resource: https://www.cardfellow.com/blog/what-happens-when-you-get-a-chargeback/
A chargeback is a dispute initiated by a cardholder against the merchant who accepted their card as payment in exchange for goods or services. The chargeback process is available as a protection for cardholders against fraud as well as merchants who do not provide their product/service as promised.
When a bank receives a chargeback dispute from one of their cardholders, they open an investigation by contacting the processor and requesting evidence that the product/service was provided. The processor will then notify the merchant of the chargeback and advise as to what documentation is needed.
While rare for most merchants, chargebacks can be a costly and time-consuming strain. Dishonest cardholders may take advantage of the system, and the burden is on the merchant to prove they fulfilled their commitment to the cardholder. It is recommended that you respond to all chargeback notices as quickly as possible and try to resolve any disputes with your customers before they result in a chargeback.
What are common chargeback reasons?
- Fraudulent transaction
- Duplicated charges
- Not as described/defective merchandise
- Services not provided or merchandise not received
- Refund not processed after returned item
How can I avoid chargebacks?
- Always insert an EMV chip, swipe magnetic strip, or imprint any card that is present. (Inserting the chip greatly reduces your liability and should always be your first choice).
- Use PIN to verify debit transactions.
- Ensure that all displayed pricing is clear and up to date.
- When appropriate, collect billing address, zip code, and CVV.
- Use additional ID verification such as a driver’s license.
- An agreement or authorization form provides you with additional documentation for large purchases and can also detail the product or service should a dispute arise later. Have the customer sign the form.
- Maintain a history of tracking and proof of delivery.
How to Respond to a Chargeback
Once a chargeback is received:
- Log into your Broadlume Payments portal
- Navigate to Reports
- Open the Dispute Manager Report
- Click on the Upload Docs button on the Chargeback you would like to respond to:
- Click on the left-hand box containing the image with the upward arrow and Submit:
Helpful Tips and Best Practices when responding to chargebacks
Be sure to upload any supporting documents that confirm the cardholder authorized the transaction being disputed. Providing documentation that shows proof of authorization such as:
- Signed receipts
- Written contract(s)
- AVS (address verification system) matches
- Proof of service / delivery
Responding quickly and thoroughly increases the likelihood of winning a chargeback!