Reducing Chargeback Losses

Here are some helpful guidelines to help you reduce losses incurred from chargebacks.

Cards that do not swipe
If the credit card terminal cannot read the card. You can key-in the card number and expiration date. It is best to make an imprint of the card on a paper sales draft using a manual imprinter. The imprinted sales draft must contain the pertinent sales data, including the cardholder's signature. Do not refuse to accept a card simply because the magnetic strip cannot be read.

Retrieval Request
A retrieval request is a request for a copy of a credit card receipt. Once a retrieval request letter is received either by mail or fax, provide a legible copy as soon as possible. (Note: If a copy is not received, the cardholder's bank can issue an irreversible charge back for Non Receipt of Requested Item) The most common charge back occurs when a merchant does not respond. All credit card receipts must be maintained for 7 years. Please file your receipts by transaction date, not by cardholder name. (Please note: The retrieval requests will not include the cardholder's name, as the cardholder's name is not provided to BMS)

Return Policies
To be considered proper disclosure, your return policy must be on your sales draft at the time of the sales and printed prominently in close proximity to the cardholder's signature. (e.g., No Refunds, All Sales Final)

Mail Order / Telephone Order Transactions
If you process MOTO transactions, be sure to use Address Verification Service (AVS) and request the customers CVV2 number that appears on the back of their card. Note: AVS will not prevent all charge backs, and it does not work outside the U.S. but it will still help you reduce fraudulent transactions. Obtaining CVV2 numbers, watching for suspicious transactions such as large dollar sales, or rushed orders that are from areas you do not advertise in will also help you to reduce fraud transactions. All sales must be processed within 7 days of the date the authorization was received. If merchandise / services are not available within 7 days, obtain a new authorization code prior to processing.

Authorizations
Request an authorization on every credit card sale. Once an authorization attempt is declined, do not attempt another authorization. Ask for an alternative payment source. If you process a credit card sale that was declined, or previously declined, the cardholder's bank may initiate a charge back.

Debit Card Returns
If returned merchandise was purchased using a Debit Card, you have the option of providing the cardholder with cash or an in-store credit. Do not attempt to process Debit Card refunds electronically.