Dealing with Invalid Chargebacks

In order to eliminate frivolous customer disputes and invalid chargebacks, the Credit Card Associations of Visa and MasterCard have implemented sophisticated verification systems that significantly reduce chargeback levels and greatly improve the chargeback process. When Visa or MasterCard detect an invalid chargeback, it is automatically returned to the card issuer that originated it, and the merchant and merchant services provider never see it. Many credit card processing companies (including UniBul) also have systems that routinely review exception items, allowing them to resolve issues before a chargeback is necessary. Together, these systems ensure that the chargebacks that you receive are legitimate or that only you can respond to them.

Even though the chargeback verification systems are becoming ever more sophisticated, there is still a chance that an invalid chargeback may find its way around them and into your merchant processing statement. In addition, a chargeback may be cleared by the Credit Card Associations' verification systems, as it meets their requirements, and still be invalid. In these cases you should follow through as quickly as possible and represent your supporting evidence to proof that the credit card processing charges were valid.

Although invalid chargebacks cannot be completely eliminated, you can significantly reduce their number by following certain payment card processing best practices. Ask your merchant account provider for assistance in implementing these best practices into your organization. If the levels of invalid chargebacks remain consistently high, even after all of your efforts to contain them and all of the assistance that you have received from your merchant account provider, it may be possible that your processor simply lacks the expertise to address the issue and your best option may be to switch to another payment processor. Be sure to do your due diligence when researching your prospects and consider all aspects of the service. Contact merchants who are currently using your prospect's merchant services and evaluate their level of satisfaction. Keep in mind that the right processing partner can save you money and help grow your business.