Chargebacks from the Issuing Bank's Perspective
Need Help in Managing Your Chargebacks?
Or simply need advice:
I offer a range of services to help businesses effectively manage payment disputes and protect their revenue:
Chargeback Management: Comprehensive strategies to minimize the impact of chargebacks, including prevention techniques, representment, pre-arbitration and arbitration guidance, and dispute resolution best practices.
Risk Assessment: Thorough assessments of your current payment processing practices, identifying vulnerabilities and providing actionable recommendations.
Data-Driven Insights: My recommendations are based on thorough analysis of your business data, industry trends, and best practices, enabling confident decision-making.
Training and Education: Customized training programs to empower your team with the knowledge and skills to handle payment disputes effectively, as an issuer, acquirer, payment processor or merchant.
Strategic Consulting: Tailored strategies that align with your unique business goals, ensuring long-term success in the face of evolving chargeback challenges.
This document provides a guide to the chargeback process from the perspective of the issuer. The process is broken down into five main stages, each of which is crucial for ensuring a fair and efficient resolution for all parties involved.
For more information on the different stages of chargebacks and their corresponding timelines, please refer to this article.
Stage 1: Cardholder Reports Issue
Cardholder contacts issuing bank to dispute transaction.
Stage 2: Cardholder Completes Dispute Form (questionnaire)
Issuing banks who require phone calls to dispute a payment will ask the cardholder several questions and fill out the form on behalf of the cardholder.
The questionnaire is designed to capture the dispute reason and relevant information required by card networks.
What is a Questionnaire
Cardholders are typically required to provide information to help validate their claim. This varies by card network and chargeback code. The information here will be entered either in VROL (Visa Resolve Online) or MCOM (Mastercom for Mastercard) as required by the card networks in order to pursue a chargeback.
Stage 3: Intake Process
Initial Review and Chargeback Rights
In this stage, the issuing bank determines if the cardholder has the right to file a chargeback based on the card network rules. Factors like timeline, transaction type, and dispute reason are considered.
If the cardholder doesn't provide complete or accurate information, the issuing bank will request more details to support the dispute.