Running a small business can be incredibly difficult especially in the world of online shopping and payments via credit card. There are a vast number of reasons that a customer’s bank will issue a “chargeback” or a withdrawal of the funds once paid to the owner’s company. Some of those reasons include: fraudulent purchases, unrecognized purchases, disputed monthly subscriptions, product was never received or the product was damaged in the shipping process. Luckily for business owners, there are ways to respond to the banks to remove chargebacks that were incorrectly (and sometimes fraudulently) initiated by the customer.
- There are 151 chargeback reason codes across the four major card networks. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight distinct categories.
- By understanding the reason code associated with the chargeback, you’re able to submit a response that includes the appropriate compelling evidence. In this post, we’ll review the categories of reason codes merchants and what compelling evidence to include to submit a response.
- How you respond to fraudulent chargebacks hinges on the nature of your business and the circumstances of the transaction at-hand. With authorization from the cardholder and used AVS and CVV, then supply at minimum Copy of the transaction invoice or signed order form or Proof of delivery
“There are 151 chargeback reason codes across the four major card networks. The good news for those using Shopify Payments, the hundreds of reason codes and buckets them into eight distinct categories. For those not using Shopify Payments, you’ll see the same categories of reason codes instead represented in their original reason code format.”