Generally, where possible, your response should include all details relevant to the transaction and ideally details to verify the cardholder which may include:
#Dispute a transaction plus
When a dispute is formally raised, we notify the merchant so they can contest the dispute, and temporarily withhold the funds for the disputed charge plus a dispute admin fee of $25 AUD from the merchant’s settlement funds. If however the cardholder is not satisfied with the details relating to the charge on their card, they may formally raise a dispute to recover the funds. Should information provided by the merchant prove satisfactory to the cardholder, the case is closed. A retrieval request is purely a request for information and does not result in the immediate movement of funds. The notification of a dispute may be received via the following:Ī retrieval request which is generated when the cardholder has requested more details about the charge on their card. The Dispute ProcessĪ dispute is initiated by the consumer’s issuing bank (the bank that supplied them their credit card) and the process is directed through Pin Payments’s acquiring bank. While it is a disappointing reality, depending on the products/services offered and the locations into which you’re selling, you may need to incorporate a premium into your pricing to cover dispute risk.įor more information on understanding the risks associated with what you sell, please read our blog post on the subject. While some controls can be instituted for physical goods (outlined below), the sales growth in digital products on a global scale, makes it more challenging to understand exactly who you’re selling to. It is important to understand the products and services you are offering and their respective appeal to fraudulent individuals. Understanding the risks associated with what you sellĬertain products/services (such as online data storage) show a higher incidence of dispute risk as they attract individuals who wish to use these services for nefarious means. While it’s less than ideal, this is an unavoidable risk of transacting online that you need to be aware of. While Pin Payments and the banks have fraud detection systems in place, these will not always be able to catch cases where stolen cards are used to purchase goods on your website. In the case of Card Not Present transactions, for example transactions made over the internet, the merchant carries a higher level of dispute risk as they may be unable to provide such evidence to show that the ‘true’ cardholder authorised or participated in the transaction. The conditions outlined by the card companies is clear in that their trading rules request that a ‘PIN number’ or ‘signature’ be obtained during a transaction. This guide is intended to provide an overview of the dispute process and help you understand the risks of transacting online. Admin error, such as duplicate billing, incorrect amount billed or a refund which was promised but never received.their card information was stolen and used fraudulently). Fraud, where the cardholder claims they did not authorise the purchase (e.g.Not recognised, where the cardholder has no recollection of what a charge in their bank statement relates to.Not as described, where the cardholder claims to have never received the goods, or the goods were materially different from their expectations.Disputes are a feature of the Visa, Mastercard and American Express card networks intended to protect cardholders from fraudulent activity.ĭisputes may arise for a number of reasons including: A dispute occurs when a cardholder contacts their card issuing bank and demands to have their money returned.
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