Chargebacks Flashcards
What happens if a chargeback remains unfunded?
The clearing member/aquirer bears financial responsiblity
What happens when chargeback processing occurs?
This effectively REDUCES the amount FD pay the merchant. If no sales are available to offset the chargeback debits, the merchant’s DDA is debited.
*NOTE - The merchant is responsible for all CB and related costs.
Clearing & Settlement: Distinctions
Clearing - is the movement of data from the Acquirer to MC/Visa and from MC/Visa to Issuer.
Settlement - The process of exchanging funds between members (Acquirer and Issuers) for the net value and the monetary transactions cleared for that day.
What is the initial chargeback stages?
After the initial presentment of a cardholder transaction from the acquirer to the Issuer may be determined that, for a given reason specified, the transaction may be invalid.
The issuer may then return the transaction to the Acquirer as a chargeback for possible remedy.
Where does the Clearing Process take place?
Acquirer MC/V Issuer
Additional Chargeback Stages:
What is a retrieval?
A request for a copy of a sales draft or invoice associated with a cc transaction
Additional Chargeback Stages:
Retrievals are requested for two possible reasons. What are they?
Issuing Banks requests on behalf of the C/H
or
Issuing Banks request for their own purposes
Additional Chargeback Stages:
What are the two most important factors when responding to retrievals?
Timeliness
Legibility
What are the 7 steps if a Issuer needs a copy of the TID (transaction information document)?
Cardholder Card Issuer Acquiring Bank/Processor Merchant Acquiring Bank/Processor Card Issuer Card Holder
What is the IDS Process “Integrated Dispute System”?
To research specific chargebacks for a merchant under invesitgation.
