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    Chargeback Process Flow

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    guy
    This document provides an overview of the chargeback process flow. It begins by defining key terms like chargeback, re-presentment, pre-arbitration, and arbitration. It then outlines the requirements for filing chargebacks for different transaction types like web, POS, and ATM. Requirements for fraudulent transaction chargebacks are also listed, including needing a signed dispute letter from the cardholder. Finally, it identifies some major challenges with dispute processing as knowledge gaps, delays in password approvals, and short Finacle durations.

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    Chargeback Process Flow

    Uploaded by

    guy
    375 views11 pages
    This document provides an overview of the chargeback process flow. It begins by defining key terms like chargeback, re-presentment, pre-arbitration, and arbitration. It then outlines the requirements for filing chargebacks for different transaction types like web, POS, and ATM. Requirements for fraudulent transaction chargebacks are also listed, including needing a signed dispute letter from the cardholder. Finally, it identifies some major challenges with dispute processing as knowledge gaps, delays in password approvals, and short Finacle durations.

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    Original Title

    CHARGEBACK PROCESS FLOW-

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    This document provides an overview of the chargeback process flow. It begins by defining key terms like chargeback, re-presentment, pre-arbitration, and arbitration. It then outlines the requirements for filing chargebacks for different transaction types like web, POS, and ATM. Requirements for fraudulent transaction chargebacks are also listed, including needing a signed dispute letter from the cardholder. Finally, it identifies some major challenges with dispute processing as knowledge gaps, delays in password approvals, and short Finacle durations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    375 views11 pages

    Chargeback Process Flow

    Uploaded by

    guy
    This document provides an overview of the chargeback process flow. It begins by defining key terms like chargeback, re-presentment, pre-arbitration, and arbitration. It then outlines the requirements for filing chargebacks for different transaction types like web, POS, and ATM. Requirements for fraudulent transaction chargebacks are also listed, including needing a signed dispute letter from the cardholder. Finally, it identifies some major challenges with dispute processing as knowledge gaps, delays in password approvals, and short Finacle durations.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11
    At a glance
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    The key takeaways are that chargebacks are initiated by card issuers on behalf of cardholders for disputed transactions, and involve processes like re-presentment, pre-arbitration and arbitration between issuers and acquirers.

    A chargeback is a term under dispute management which means to process a recovery/refund for a disputed transaction where a debit occurs. It is initiated by the card issuer on behalf of a complaining cardholder against the acquirer who owns the terminal where the dispute occurred.

    Re-presentment is a term that means for an acquirer to decline or reject a chargeback. It allows the acquirer to refuse accepting a chargeback request for refund, but they must provide proof to support declining it, like receipts or documents.

    CHARGEBACK

    PROCESS FLOW

    By ADOYI CHARITY
    INTRODUCTION
    Today in the Card Payment Industry, card holders are encouraged to initiate
    transactions via Electronic -PLATFORM .e.g. ATM, POS and WEB.

    Disputes occur through the use of cards on either of the above Terminals, where a
    cardholder experiences a debit in his/her account without receiving value .e.g. ATM
    dispense error, Goods and services not provided in case of POS/WEB.

    2
    CHARGEBACK
    Chargeback is a term under Dispute Management which means to process
    Recovery/refund for a disputed transaction where a debit occurs. Chargeback is initiated by the
    card issuer on behalf of a complaining cardholder. Chargeback is processed against an acquirer
    who owns the terminal on which the dispute occurs. ..

    RE-PRESENTMENT
    Re-presentment is a term under Dispute Management which means to decline or reject a
    chargeback. It is a power vested in the acquirer to refuse to accept a chargeback request for
    refund of a transaction that occurred on its terminal. In doing this however, the acquirer must
    provide clear proof/evidence to support the decline. Such proof includes journal, signed receipts,
    dispatch order, delivery papers, invoice, correspondence, etc.
    PRE-ARBITRATION: This is a process where the chargeback processed was re-presented
    (declined) by acquirer without documentation or a situation where the document provided by
    acquirer is not eligible or does not match with chargeback details sent for processing. E.g. Pan
    number , transaction date and amount etc.

    ARBITRATION: is a term under Dispute Management which means to contest an acquirer’s


    decline on a chargeback. An issuer may have strong reasons/documents to support the request for
    refund. At arbitration, the issuer is allowed to present these reasons and documents to aid final
    judgment.
    • Chargeback Requirements for WEB/POS/ATM
    Dispute:

    • POS/WEB transactions: Visa regulation requires that the


    cardholder make contact with the merchant to resolve dispute,
    prior to filing a chargeback for a POS/WEB transactions. The
    mail includes transaction details. Declined receipt or is also
    accepted for POS transactions where it contains the complete
    transaction details.

    • ATM transactions: No documentation is required


    CHARGEBACK REQUIREMENT FOR FRAUDULENT
    TRANSACTIONS (FIRSTLY, CARD MUST BLOCKED)

    A duly signed letter by the card holder - this would contain;


    a). Transaction amount(s)

    b). Transactions Date

    c). Full PAN number

    d). Card holder must state in his/her letter that he did not

    participate or authorize the transactions/debits.

    e). Card holder must state merchants name in his letter.

    f). Card holder must state that his card has been blocked. (Regards to Visa rules)
    • g). Card holder must state in his letter if he was in possession of
    the card at the point he received the debit alerts.

    • (h) Dispute letter must be written by cardholder, scanned and


    attached on CCM (preferably in PDF format) by the receiving
    Officer or whoever is to log the claim.
    REQUEST FOR COPY (RFC):Before chargeback can be processed for POS
    fraudulent transactions, RFC must be processed. This is to request for
    copies of the transaction receipt. According to VISA rule, if any of the
    receipts is being signed, be it the cardholder’s signature or not, chargeback
    right does not exit.
    MAJOR CHALLENGES

    • Dispute processing knowledge gap.


    • Delay in Finacle password reset approval by Country CHAC
    • Short Finacle duration.
    Any ???
    THANK YOU

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