Managing your chargebacks and minimising your exposure.
A chargeback is the reversal of a previously cleared transaction; the cardholder’s account is credited with the amount of the sale and your business’s account is debited. A chargeback is initiated by the issuing bank. Each different card type you accept has its own set of card regulations.
The most common causes of a chargeback are:
- fraud enquiries – the cardholder denies participating or authorising a transaction
- dispute - the cardholder disputes the sale due to delivery/product/service issues
Limit Your Risk with Fidelity
Fidelity offers Industry leading fraud prevention tools, as standard, to reduce the amount of risk your company is exposed to and in turn limit the risk of chargebacks. These include:
- Customisable rules for AVS (address verification) and CV2 (3 digit security credit card code) checks
- 3D Secure authentication (with Visa and MasterCard) with liability shifts
- American Express SafeKey
All Merchants accepting debit and credit card payments run the risk of being liable for chargebacks. A cardholder or card Issuer has the right to question or dispute a card transaction. A chargeback can be received up to 120 days after the card transaction was taken/ from agreed date of delivery.