How to Reduce Chargebacks

How to Reduce Chargebacks † Staff Reference Guide ® 2 It is recommended that you read and understand the Terms and Conditions listed in your Moneri...
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How to Reduce Chargebacks †

Staff Reference Guide ®

2 It is recommended that you read and understand the Terms and Conditions listed in your Moneris® Visa® Merchant Agreement/Moneris MasterCard® Merchant Agreement/Moneris Discover® Merchant Agreement/Moneris INTERAC® Card and Terminal Agreement. This document is a guide only, designed to assist you when accepting cards.

This guide covers the following topics in detail: Training Your Staff

4

What Are Chargebacks?

5

Proper Card Acceptance

6

Reducing Chargebacks

8

• At the Point of Sale

8

• Transaction Settlement

10

• Service Issues

11

Retrievals

12

How To Reduce Retrieval Requests

14

Retrieval & Chargebacks Contact Information

15

Important Tips – Card Present Environment

16

• Chip & PIN Transactions

16

• Magnetic Stripe Transactions

17

• Key-Entered Transactions

18

Why Do I Need an Imprinter?

20

Unembossed and Prepaid Cards

22

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Code “10” Procedures

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Pre-Authorizations and Refunds

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• Hotel and Car Rental Pre-Authorization

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• Refund Limits and Purchase Corrections

27

Card Not Present Environment

28

• Processing Remote Transactions

28

• Fraud Prevention & Tools

29

• Prevention Tools

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Chargeback Reason Codes & Remedies

32

• Visa / MasterCard / Discover Chargeback reason codes

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• Request for Information

32

• Authorization Related

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• Fraud Related

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• Processing Errors

34

• Canceled or Returned

34

• Non-Receipt Of Merchandise or Services

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Training Your Staff

4

By providing your staff with the necessary training on proper card acceptance policies and procedures, you can: ■

Give them the skills and knowledge to assist them in doing their jobs accurately and confidently



Enhance customer service



Help to reduce related losses (e.g. fewer fraudulent transactions)



Help to reduce related expenses (e.g. fewer retrieval requests and chargebacks)

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5 ■

A cardholder dispute



Improper card acceptance or authorization procedures according to the Card plans



Violation of your Merchant Agreement



Fraudulent transactions



Non-fulfillment of retrieval requests



Processing errors

Chargebacks may result from avoidable mistakes; therefore, the more informed your employees are about proper transaction-processing procedures, the less likely they will process transactions that might result in a chargeback. Chargebacks can be costly, in that, you can lose the dollar amount of the transaction, the related merchandise and any costs associated with processing the chargeback.

What Are Chargebacks?

Chargebacks are adjustments to your merchant bank account that may result from:

Proper Card Acceptance

6 Proper Card Acceptance procedures must be followed at all times to avoid or mitigate the risk of potential fraud-related chargebacks. ■

IF – Terminal is Chip & PIN ready and the cardholder has a Chip & PIN preferring card, merchants must insert the card and obtain a ‘Verified by PIN’ transaction that is fully authorized (no decline or refer response).



IF – Chip & PIN technology fails, merchants must swipe the card. The merchant must obtain a valid authorization and the cardholder’s signature, or he or she will be liable for fraud-related chargebacks if the transaction is disputed.



IF – Chip & PIN technology fails AND card swipe fails, key in the card number and obtain a valid authorization. A manual imprint of the credit card and the cardholder’s signature are required, or the merchant will be liable for fraud-related chargebacks if the transaction is disputed.



IF – Terminal is Chip & PIN ready and the card is a Chip & Signature card, merchants must insert the card and obtain a valid authorization and the cardholder’s signature on the transaction receipt.



IF – Terminal is Chip & PIN ready and the card is a non–chip card (magnetic-stripe only), merchants must swipe the card and obtain a valid authorization and the cardholder’s signature on the transaction receipt.

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IF – Terminal is Chip & PIN ready and the cardholder has a Chip & PIN preferring card but forgets the PIN or PIN is locked and the PIN attempt fails, merchants must advise the cardholder to contact their Card Issuer, or ask for another form or payment.



IF – Chip card is removed from the device before the transaction is finished, merchants must re-insert the card and obtain a “Verified by PIN” transaction that is fully authorized.

Reducing Chargebacks

8 Chargebacks can result from improper transaction processing and may be avoided with proper training and attention. At the Point of Sale: ■

Card Validity. Ensure that the card being presented is valid and that the standard identification and security features of the card have been verified.



Cardholder PIN. The cardholder’s Personal Identification Number (PIN) is required for card-present transactions completed using Chip & PIN cards. Transactions using chip cards at chip enabled merchants do not require a signature.



Chip & Signature. Some Chip cards may be configured to allow for a signature rather than a PIN when the card is inserted and prompted by the terminal.



Magnetic-Stripe Cards. For all Non-Chip, card present transactions, the card must be swiped and the cardholder’s signature is required with the exception of unattended cardholder activated terminals and merchants participating in the following programs: • VEPS (Visa’ Easy Payment Service Program) • No Signature Required (Discover’s No Signature Required program) (For more information on these programs, please contact us.)



Card Imprint. If you are using a manual imprinter, confirm that the customer’s card number and expiration date are visible on all copies of the manual sales slip. Ensure that the cardholder signs the manually imprinted copy.

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Signature. Not obtaining a signature when required could result in a chargeback if the cardholder later denies authorizing the transaction. Verify the customer’s signature to that on the card. If the signature varies greatly, ask for additional identification or make a Code 10 call (refer to Code 10 procedures below).



Declined Authorization. If the authorization request returns a declined response, do not complete the transaction and do not repeat the authorization request. Advise the customer to contact their issuing bank and ask for another form of payment.



Referrals. If your authorization request results in a “Call” message, call your authorization centre prior to finalizing the transaction.



Expired Card. Do not accept a card after its expiry date unless an authorization approval for the transaction has been obtained from the card issuer.



Card Not Present. A transaction that occurs when the card, the cardholder, or the merchant representative is not present at the time of the transaction (such as, but not limited to, mail order, telephone order, or Internet transactions).



Legibility. Ensure that the information on the transaction receipt is complete and legible. Illegible documentation can result in a chargeback.

Reducing Chargebacks

10 Transaction Settlement: ■

Duplicating Transactions. Ensure that a single transaction is not processed to Cardholder more than once. To do this, verify totals on a daily basis to identify potential voids.



Billing Cardholders. Ensure settlement of transactions within the timeframe outlined in the terms and conditions of your merchant agreement.



Recurring Transactions. Maintain a record of recurring payment transactions and obtain new authorization for each recurring payment with a valid expiry date. If a cardholder cancels or changes a recurring payment arrangement, ensure that your records are updated. If a transaction is submitted after a customer cancels a recurring payment arrangement, you may be subjected to a chargeback.

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11 Service Issues: ■

Stock & Delivery. Advise the customer if the merchandise purchased is out of stock or will be delayed in delivery. This will help to avoid unnecessary cancellations and chargebacks.



Refund/Exchange Policies. The terms and conditions of your merchant agreement(s) require that you properly disclose to the customer the refund, exchange, or service cancellation policies at the time of the transaction. This will help to avoid any cardholder disputes and misunderstandings.



Delayed Delivery. For delayed delivery transaction, the customer should only be billed when the merchandise has been shipped.

Retrievals

12 Occasionally you may be requested to provide copies of transaction documentation that need clarification on charges that were processed to the cardholder accounts. You are required to retain the transaction documentation for a minimum of 24 months from the transaction date. Responses to retrieval requests must be faxed or sent according to the instructions and timeframe indicated in the retrieval request letter.

Retrieval Requests: ■

Retrieval Timeframes. Ensure that all retrieval requests are fulfilled by submitting all applicable documentation and other requested information within the specific timeframe as outlined in the retrieval request letter.



Duplicate Requests. Respond to all retrieval requests, even if they appear to be duplicates.



Retrieval Response. In response to a retrieval request, you should provide a legible copy of the proof of purchase and if applicable ensure the following are included: • Manual sales slips • POS terminal transaction receipts • Invoices or contracts • Hotel guest folios • Purchase order forms • Car rental contracts • Airline tickets • Cruise line folios

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Receipt Requirements. Your response to requests must be legible and include the following minimum requirements: • Truncated Card number • Authorization number • Cardholder name • Cardholder signature (if applicable) • Merchant name • Merchant location • Transaction date • Transaction amount • Or any other document as requested

How to Reduce Retrieval Requests

14 Ensure customers are able to recognize your business name on the receipts. Cardholders must be able to look at their statements and recognize transactions that occurred at your establishment.

Train sales staff to: ■

Follow proper card acceptance procedures.



When authorizing a transaction, ensure that the card is inserted in the direction indicated on the terminal and a PIN is entered. If chip technology fails, the card must be swiped and a signature is required.



For magnetic stripe or keyed enter transaction, verify the signature on the receipt matches signature on the back of the card.



Review transaction receipts for accuracy and clarity.



Retain the original signed copy of the sales receipt.



Avoid illegible transaction receipts by: • Routine point-of-sale (POS) printer cartridge maintenance • Changing POS printer paper when the coloured streak first appears • Retaining the original signed copy of the transaction receipt for better photocopying quality • Handle carbon-backed, silver-backed and carbonless paper carefully • Avoid highlighting

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15 Visa / MasterCard / Discover Retrieval Requests ■

416-231-9329 (Local) or



1-866-596-1116 (Toll free / All of Canada)

Visa / MasterCard / Discover Chargeback Requests: ■

416-734-1561 (Local) or



1-866-354-3797 (Toll free / All of Canada) Retain the fax confirmation as proof of fulfillment. It is recommended to ensure your fax machine’s time and date are set correctly to provide accurate proof. Return a copy of the documentation received.

Retrieval and Chargeback Mailing Addresses Visa / MasterCard / Discover ■

Moneris Solutions Corporation P.O. Box 410 – Station A Toronto, Ontario, M5W 1C2

Merchant Direct® ■

Retrieval and Chargeback documentation may be viewed online through Merchant Direct Secure Message Center

Retrievals & Chargebacks Contact Information

Retrieval and Chargeback Fax Numbers

Important Tips

16

TEACH SALES ASSOCIATES THE PROPER WAY

Card Present Environment: If the cardholder is present and has the card number but not the card, decline the transaction. Even with an authorization, the transaction may be fraudulent and charged back to you.

Chip & PIN Transactions ■

The card is inserted into a chip-reading terminal, instead of being swiped.



The card remains inserted in the terminal throughout the transaction.



The terminal will display the purchase amount and request the cardholder’s PIN.



The cardholder will enter his or her PIN on a keypad.



If the PIN is confirmed, and the purchase approved, a receipt is printed.

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Magnetic-Stripe Transaction ■

For all Non-Chip, card present transactions, the card must be swiped.



Swipe the card once and in one direction only.



Enter the correct amount to be authorized and verify the authorization response.



Obtain the cardholder’s signature.



Verify the signatures. If the signatures do not match, request additional identification. If they still don’t match, request a Code 10 authorization if you are suspicious of the customer (Please see Code 10 process below).



If the signature panel is blank, review valid identification such as a driver's license. Ensure the customer signs the card promptly and decline the transaction if the cardholder refuses.



If the embossed name and numbers do not match those printed on the receipt, request a Code 10 authorization.

For merchants who are not Chip & PIN ready, swiping a chip card does not provide protection from fraud-related chargebacks under liability shift rules.

Important Tips

18 Key-Entered Transactions The chip and magnetic stripe are active components of the card’s security that makes manual processing appropriate ONLY when a card’s chip or magnetic stripe can’t be read. Key-entered transactions are considered high-risk and may result in Chargebacks. ■

At the POS terminal you must: • Manually key enter the card number • Enter the correct amount and valid expiry date • Verify the authorization response



On the POS terminal receipt you must: • Print “PROOF COPY” on the signature line • Record the pre-printed reference number as it appears on the manual sales draft



A manual sales draft must also be completed that includes all of the following: • Date • An imprint of the card • Details of the transaction • Dollar amount • Customer signature • Authorization Number/Code • Merchant name, address and merchant number • Do not write “void” or “copy” on the face of the manual sales draft.

For merchants who are not Chip & PIN ready, an imprint of a chip card does not provide protection from fraud-related chargebacks under liability shift rules.

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If…

Then...

Approved

Customer must sign receipt in the case of a non-chip transaction.

Declined

Request another form of payment.

“Call” message received

Call authorization centre.

Pick-up

Keep card by peaceful means.

No Match

Swipe the card and re-key the last 4 digits. If no match appears again, retain the card by peaceful means and request a Code 10 authorization.

Important Note: If you use a POS terminal to process transactions, your floor limit is zero and you must obtain an authorization number for each transaction. • It is important to remember that an authorization does not mean that the actual cardholder is making the purchase or that a legitimate card is involved. • An authorization only means that credit is available and that the card is not currently blocked.

Why Do I Need An Imprinter?

20 1. Credit cards that do not swipe or Chip not readable When the magnetic stripe or Chip card cannot be read, a manual imprint must be taken. Failure to do this may result in financial loss to you. Ensure that procedures for key-entered transactions are followed and includes the minimum requirements.

Manual sales: ■

Date



An imprint of the card



Details of the transaction



Dollar amount



Customer signature



Authorization Number/Code



Merchant name, address and merchant number



Do not write “void” or “copy” on the face of the manual sales draft.

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21 2. POS electronic system is unavailable or not responding When the POS electronic system is unavailable, merchants will need to revert to manual processing procedures. Ensure that procedures for Down Time processing are followed:

Down Time Procedures ■

If amount is greater than your assigned floor limit, Call Moneris for a voice authorization at 1-866-802-2637.



Take a manual imprint of the credit card and obtain the cardholder’s signature on the manual sales draft.



Record the authorization number and correct amount on the manual sales draft.



When system/service is restored, force post the transaction on the electronic POS terminal using the assigned authorization number.



Ensure that all of the information is clearly visible on the manual sales draft.

Note: Do not submit copies of manual sales drafts to Moneris for processing.

Unembossed and Prepaid Cards

22 Unembossed and Prepaid cards are similar to the cards you currently accept. They may take the form of a credit, debit, or prepaid/gift card, and will have the same familiar brand mark such as Visa, MasterCard and Discover.

Unembossed Cards One major difference with unembossed cards is that the card will look “flat”. All account information – cardholder name, primary account number (PAN), validity date, and security character – is projected onto the front of the card with tamper-evident laser engraving or indent printing rather than embossing. “Electronic Use Only” must be printed on the front of the card. Unembossed cards can only be used in electronic terminals that are capable of online authorization. They cannot be key-entered. If a POS terminal is not available, merchant should advise the customer to contact the Card Issuer or request for another form of payment. If an Unembossed Card is manually key-entered, merchants will be liable for any chargebacks.

Prepaid Cards Visa, MasterCard & Discover Prepaid cards can be embossed, with raised characters, or unembossed, meaning they’re flat and smooth. On unembossed cards, you’ll see the words ELECTRONIC USE ONLY, which means transactions should be processed at an electronic terminal that allows for automatic authorization. Prepaid cards can be personalized with the cardholder’s name or they may be non-personalized – both types of card are processed the same way. Prepaid cards can be used anywhere that accepts Visa, MasterCard or Discover, including mail order, online and point of sale retail merchants. Prepaid cards must be registered before making online purchases; cardholders can do this with the card Issuer via the Internet or over the phone. A cardholder returning an item must present the prepaid card used to make the purchase along with the original sales receipt.

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23 cards, cardholders or transactions.

Common characteristics of suspicious activity: ■

The card has been altered.



The card number on the card does not match the card displayed on the receipt.



The customer’s behaviour leads you to believe that something is “wrong”.



Signature does not match the signature on the back of the card.



Cardholder does not know their PIN and asks to swipe the card.

For example: ■

The customer makes indiscriminate purchases with regards to size, colour, style or price.



The customer questions the staff about floor limits or makes several small purchases that reach but do not exceed the floor limit.

To Make a Code “10” call: ■

Keep the card in your possession during the call.



Call your voice authorization center and request a “Code 10” authorization.



The operator will transfer you to the Card Issuer, who will ask a series of questions to determine the validity of the card.



If you are requested to retain the card, attempt to do so by peaceful and reasonable means.

Code “10” Procedures

Code “10” calls allow merchants to alert card issuers to suspicious

Pre-Authorizations and Refunds

24 Hotel and Car Rental Pre-Authorization ■

If presented with a Chip & PIN card, the card must be inserted into the chip-reading terminal and the terminal prompts should be followed.



If card is PIN-preferring, the cardholder will be required to enter a PIN.



Even if the transaction is pre-authorized – when checking into a hotel or renting a car, the credit card will need to be presented on arrival and the customer will be asked to enter their PIN to accept the estimated amount.

Estimated Authorization ■

When the customer arrives, you may estimate the total charges and obtain an authorization for the estimated amount. This estimate of the guest’s total charges should be based on: Hotels: • Expected length of stay • Room rate including tax • Incidental charges such as room service, telephone calls, and parking Car Rental: • Expected length of rental • Applicable daily, weekly, monthly rental rate (including tax) • Incidental charges such as insurance, and any other additional necessities • Mileage rates • Never overestimate or pad the authorization amount • Never require a customer to sign a blank draft or a deposit receipt for damages

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25 Final Authorization When the guest checks out or car is returned, authorization is required in the following instances: ■

If there was no previously estimated authorization and the actual transaction amount is above your floor limit, authorize the actual transaction amount.



The final settlement amount must be within 15 or 20 percent of the authorized amount. (15% Visa and MC or 20% Discover)



Car Rentals paid with Visa, the final settlement amount must be within 15% or US $75, whichever is the greater of the authorized amount. Incremental authorization is not required if the settlement amount falls within the allowed tolerance.



If there was a previously estimated authorization amount, apply the “15% or 20% rule” or Visa US $75 for car rentals, to determine whether or not an incremental authorization is required. • Add 15% or 20% or Visa US $75 for car rentals to the previously estimated authorization amount. • Compare the total to the actual (or final) transaction amount. • If the actual transaction amount is more than the sum of the previously estimated authorization amount plus 15% or 20% or Visa US $75 for car rentals, an incremental authorization is required for the difference between the previously estimated authorization amount and the actual transaction amount.



Authorization remains valid for the estimated length of a guest’s stay or customer’s car rental. If beyond the original estimate of the length of the customer’s hotel stay or car rental, you should obtain an incremental authorization approval for the additional transaction amount that you expect will be generated during the extended period.



If a hotel stay or car rental extends beyond 2 weeks, you should settle the transaction and obtain authorization for a new transaction.

Pre-Authorizations and Refunds

26 Delayed or Amended Charges ■

A delayed or amended charge may include room, food, or beverage charges, taxes, mileage charges, fuel, insurance, rental fees, and parking tickets and other traffic violations and must not include charges for loss, theft, or damage.



A delayed or amended charge must be processed to the cardholder’s account within 90 calendar days of the Transaction Date of the related Transaction.

Damages ■

Card Plan Regulations prohibit the application delayed or amended charges if the charge represents loss, theft or damage. However, a merchant may charge a separate “non-delayed and amended transaction” for damages if the cardholder agrees to that transaction.



If the cardholder agrees to pay for the damages, the merchant may charge for damages consented to by the cardholder.



Charges for damages must be processed as a separate transaction. The merchant must provide a reasonable estimate of the cost to repair the damages and obtain agreement from the cardholder. If the cardholder chooses to pay for the repairs the merchant must: • Prepare a specific sales slip with proof of card presence via Chip or Swipe. • Provide the estimated amount for repairs indicating that the amount will be adjusted accordingly pursuant to completion of the repairs and submission of the invoice for such repairs. • Obtain PIN verification or signature from the cardholder.

Note: A merchant is not permitted to require a cardholder to sign a blank transaction receipt. If such actions are taken by a merchant, the issuer may pursue compliance.

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27 Refund Limits & Purchase Corrections Refunds ■

A refund is the process followed to reimburse a cardholder when they have returned an item or cancelled a service that was to be provided.

Purchase Correction ■

A purchase correction is the means to correct an error. An example would be when a merchant bills a cardholder $1000.00 when the correct amount was $100.00. • It is important to follow the proper procedures as each function has unique financial limits and there are risks to both the merchant and Moneris when terminal functionality is misused. • We recommend a $0.00 debit refund limit (exchange only, cash refunds, in-store credit). • Unlike credit refunds, debit refunds are immediately posted to the cardholder’s bank account. And the debit refund limit is a per transaction limit.



Best Practices for client refund processing • Restrict access to your POS equipment; • The authority to process refunds should be restricted to one or two people at a supervisory level (on certain POS devices); • Implement pass codes and put processes in place to safeguard such pass codes; and • Daily audits should be performed on refunds (to match refunds to sales).

Card Not Present Environment

28 Processing Remote Transactions ■

If you are able to process remote transactions under your merchant agreement, it is recommended that you refer to and review the terms and conditions related to these types of transactions.



To process a Card absent transaction, the merchant must manually key enter the card number. • Ensure that the expiry date and the amount are entered • Key-in the card number and verify the authorization response.



Mail/Phone Order and Electronic Commerce Transactions: If merchandise is to be shipped, an authorization for Mail/Phone Order or Electronic Commerce transaction can be obtained up to 7 calendar days of the transaction date. For such a transaction the transaction date is the date the merchandise is shipped.

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29 Fraud Prevention & Tools The following prevention indicators and tools may assist you in reducing the risk of fraud-related chargebacks and losses. In addition, card-not-present merchants should develop fraud control policies and training for employees.

Help reduce the risk by recognizing potential indicators such as: ■

First-time shoppers



Larger-than-normal orders



Orders that include multiples of the same item



“Big-ticket” item purchases



“Rush” or “overnight” shipping



Shipping to international addresses



Transactions with similar account numbers



Shipping to a single address, but transactions placed on multiple cards



Multiple transactions on one card over a short period of time



Multiple transactions on one card with a single billing address but multiple shipping addresses



Online transactions: multiple cards used from a single IP address



Orders from addresses of free e-mail services

Card Not Present Environment

30 Prevention Tools Verified by Visa & MasterCard SecureCode ■

Merchants are open for chargebacks with card absent processing. Any disputes will be returned, regardless of what was verified or investigated. The only exceptions are the Verified by Visa and the MasterCard SecureCode programs.



This password verification process allows the cardholder identity to be confirmed in real-time during checkout by the cardholder’s financial institution. It is meant to closely replicate a “card present” environment, which can help to reduce the risk of fraud. • Most effective with online business types as it offers protection against fraud-related chargebacks. • It allows customers to verify their identity at the time of purchase through the use of his or her personal password. • If proper procedures are followed, it will reduce fraudulent transactions and fraud-related chargebacks. • Increased cardholder confidence may lead to increased sales.

AVS – Address Verification Service ■

AVS provides merchants with a method to verify the billing address given by the cardholder, to the billing address on file with the credit card issuing bank.



Participating cards: Visa, MasterCard and Discover, all with similar features.



It is important to note that AVS is only a tool and is most effective when used in conjunction with other fraud tools and risk indicators.



Regardless of the AVS result, if the Card Issuer does not approve the authorization request, do not complete the transaction.

AVS alone will not prevent a fraud related chargeback.

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31 CVD – Card Validation Digit (CVV2, CVC2, CID) ■

CVD is a 3 digit code printed in the signature panel of Visa, MasterCard and Discover issued cards and 4 digit code printed on the front of American Express® cards.



This code helps to ensure that the customer making the Mail Order/Telephone Order or eCommerce transaction is in possession of his or her credit card.



Be vigilant if the customer cannot provide the CVD code or the code does not match to that on file with the Issuer, it’s more than likely that the card is not present and the number given could be stolen. In the case of an unmatched code, ask the customer to confirm it and if it still does not match, further validate or decline the transaction.



Regardless of the 3 or 4 digit code verification response, if the card Issuer does not approve the authorization request, do not complete the transaction.

CVD alone will not prevent a fraud related chargeback.

Chargeback Reason Codes & Remedies

32 Visa/MasterCard/Discover Chargeback reason codes A list of all the chargeback reason codes for which your account could be adjusted are available online on moneris.com/chargeback.

The most common chargeback remedies: Request for Information ■

Legible copy of the transaction receipt along with additional information such as detail description of goods or services ordered



When applicable, car rental contract, hotel folio or cruise line documents



Evidence the goods or services were delivered as instructed by the cardholder; copy of signed delivery receipt or work order for service completed



Evidence the cardholder participated in the transaction and agreed to the card sale

Authorization Related ■

Proof the transaction received a valid authorization approval code



When applicable, car rental contract, hotel folio or cruise line documents with the history of all authorization requests and responses



Proof to demonstrate the card was not expired on the transaction date and a valid authorization code was obtained



Legible copy of the transaction documentation signed by the cardholder (if applicable) to prove the card number is valid

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33 Fraud Related ■

For card present transactions, evidence the transaction was PIN verified and positive authorization was obtained for a Chip & PIN transaction



For magnetic-stripe or key entered transactions, evidence of card presence including imprint and signature and authorization



For car rentals, hotels, and cruise line transactions; copies of the transaction information document proving the card’s presence



For card not present transactions, compelling evidence including all of the following: • A courier receipt with the authorized signature proving the goods were delivered to the cardholder • Proof the Address Verification Service was used to validate the complete address of the cardholder • Evidence Card Identification Data (CID), Card Validation code 2 (CVC2) or Card Verification Value 2 (CVV2) was result was verified

Chargeback Reason Codes & Remedies

34 Processing Errors ■

Legible transaction documents to prove that two separate transactions were processed



Legible copy of the transaction receipt or invoice proving the transaction amount was processed correctly



Evidence that proves the cardholder agreed to the altered amount



Evidence that proves the transaction document was not altered



Evidence to refute the cardholder’s claim that payment for the goods or services was made by other means



Evidence that proves the cardholder is responsible for the additional charge

Cancelled or Returned ■

Proof that the goods or services described on the transaction information document were delivered as described



Proof that the damaged or defective merchandise was replaced or repaired



Documentation to prove the return or cancellation policy was properly disclosed and the cardholder did not cancel the order as outlined in the cancellation policy



Signed documentation by the cardholder proving the cardholder approved the quality of the goods or services



Documentation to prove the goods were not counterfeit

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35 ■

Documentation to prove the Timeshare Contract was not cancelled within 14 days of contract date



Documentation to prove a portion of the services rendered prior to the cancellation

Non-Receipt of Merchandise or Services ■

Copy of courier receipt with the authorized signature proving the goods were delivered to the cardholder or the authorized person



Proof that that services were rendered; a signed copy of an order form detailing the services rendered



Proof that the airline tickets were used by the cardholder



Proof that the cardholder was correctly charged for the quoted air fare



Evidence that proves the cancellation policy was properly disclosed and the cardholder did not properly cancel the reservation



For addendum charges, copies of the folio or rental contract and all other applicable documents relating to the transaction



Evidence the multiple airline charges are related to separate transactions

Improve your processes – and your profits – with the Moneris Mobile 8200.

Important Numbers Moneris 24/ 7/365 Customer Service Phone: 1-866-319-7450 Visa, MasterCard and Discover Retrievals Fax: 1-866-596-1116 Local Fax: 416-231-9329 (Toronto & GTA) Visa, MasterCard and Discover Chargebacks Fax: 1-866-354-3797 Local Fax: 416-734-1561 (Toronto & GTA) Credit Card IVR Authorizations Phone: 1-866-802-2637

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moneris.com ®MONERIS, MONERIS & Design, MONERIS SOLUTIONS & Design and MERCHANT DIRECT are registered trade-marks of Moneris Solutions Corporation (“Moneris”). VISA is a registered trade-mark of Visa International. MASTERCARD is a registered trade-mark of MasterCard International Incorporated. DISCOVER is a registered trade-mark of Discover Financial Services. INTERAC is a registered trade-mark of Interac Inc. AMERICAN EXPRESS is a registered trade-mark of American Express Company. All other marks or registered trade-marks are the property of their respective owners. All Rights Reserved. This manual shall not wholly or in part, in any form or by any means, electronic, mechanical, including photocopying, be reproduced or transmitted without the authorized consent of Moneris. This guide is for informational purposes only. Neither Moneris Solutions Corporation (“Moneris”) nor any of its affiliates shall be liable for any direct, indirect, incidental, consequential or punitive damages arising out of use of any of the information contained in this guide. Neither Moneris or any of its affiliates nor any of our or their respective licensors, licensees, service providers or suppliers warrant or make any representation regarding the use of, or the results of the use of, the information, content and materials contained in this guide in terms of their correctness, accuracy, reliability or otherwise. Your credit and/or debit card processing is separately governed by the Terms and Conditions of your Moneris VISA Merchant Agreement, your Moneris MasterCard Merchant Agreement, your Moneris Discover Merchant Agreement and/or your INTERAC Merchant and Terminal Agreement (collectively the “Merchant Agreements”), as applicable with Moneris. It is the merchant’s responsibility to ensure that proper card processing procedures are followed at all times. Please refer to your Merchant manuals and the Terms and Conditions of your Merchant Agreement(s) for details. The Moneris Merchant Operating Manual is available for free download at moneris.com/manuals. Chargeback_E (10/13)