Merchant Services Dispute Management
May 21, 2024
Description
Understanding disputes (chargebacks) and how to view disputes and take action on them in Dispute Management
What is a dispute?
A dispute (also known as a chargeback) is a transaction reversal meant to serve as a form of consumer protection. It takes place after a customer disputes a card transaction. Disputes generally occur when a customer believes that the transaction was not authorized or was not satisfied with the product or service provided by the merchant. A dispute can move through many stages that can vary by card brand or type and can be for the full or a partial amount of the transaction.
When an issuing bank initiates a dispute or if a dispute moves to a new stage, you will be notified in an emailed alert and a case will be created in Business Advantage 360 Disputes Management about the disputed transaction. It is your responsibility to monitor, update, and respond to disputes within the required timelines.
- Stages of a dispute
The dispute process includes multiple stages, which can vary by card brand.
Table of Stages of a dispute and descriptions| Stage | Description |
|---|
| Inquiry/Retrieval Request | Amex/Discover only
A cardholder requests additional information regarding a transaction processed to their debit or credit card. Inquiry/Retrieval requests are optional. If information supplied satisfies the request for information, the process ends; otherwise, the cardholder may choose to initiate a dispute. |
| Dispute | All card networks
A cardholder disputes a transaction processed to their card. If information supplied satisfies the dispute, the process ends; otherwise, the dispute may be advanced to Pre-arbitration. |
| Pre-arbitration | Visa, Mastercard, Discover
When either party continues to challenge the validity of the dispute. Pre-arbitration provides both parties with another attempt to resolve the dispute prior to network involvement and can be initiated by the cardholder or the merchant. If information supplied satisfies the dispute, the process ends; otherwise, the dispute may be advanced to Arbitration. |
| Arbitration | Visa, Mastercard, Discover
When the parties involved are unable to resolve the dispute on their own and the network is asked to intervene to make a ruling to determine liability. Arbitration can be initiated by the cardholder or the merchant. Arbitration rulings are final; however, a right to appeal exists in certain instances for Visa & MasterCard networks. |
- Pre-Compliance and Compliance disputes
Card networks created the compliance process to help resolve situations where a chargeback reason code does not exist or a network rule violation has occurred which has caused a financial loss as a direct result of the rule violation. Compliance generally comes into play after a dispute has been addressed but one of the parties disagrees with the outcome and has no chargeback rights.
- Pre-compliance occurs when one party has violated the network operating regulations and none of the predefined dispute conditions cover the violation that occurred. Pre-compliance provides both parties a way to resolve the dispute prior to network involvement. Can be initiated by either the issuer or acquirer. Applicable to Visa and MasterCard.
- Compliance occurs when the parties involved are unable to resolve the dispute on their own and the network is asked to intervene to make a ruling to determine financial liability. Can be initiated by either the issuer or acquirer. Applicable to Visa, MasterCard and Discover.
- How do I avoid disputes?
Most chargebacks happen because the customer was not satisfied with a service or product, they did not understand the charge on their statement, or they were charged incorrectly. To assist in avoiding these types of chargebacks, it can help to do the following:
- Resolve customer issues promptly
- Make sure your payment descriptors are clear
- Review transactions to ensure that the charges are correct
- Am I charged for disputes?
Yes, there is a fee assessed for each chargeback. Additional fees for arbitration or compliance-related rulings may also apply. If your business receives excessive disputes, you may be subject to fees or assessments.
Access Dispute Management
As a business owner or user with full access to your Merchant Services account within Business Advantage 360, you can access Dispute Management to view and respond to disputes or chargebacks.
- To access Dispute Management
- Log in to your Merchant Services account in Business Advantage 360 online banking.
- Within your Merchant Services Account(s) list, click Dispute Management.
Table of dispute management user access levels| User Access Level | Dispute Management Access |
|---|
| Full Access | Full access to Dispute Management. Can review and respond to disputes. |
| View Only | View only access to Dispute Management. Can view disputes but will not be able to respond. |
| Virtual Terminal | No access |
View Dispute details
To learn more information about a dispute prior to choosing a response, select the Dispute Questionnaire, Details, and Task tabs.
- Task
Provides the next steps to move the dispute forward. This page also includes details on the previous task to provide you with case history, if applicable.
- Dispute Questionnaire
Provides additional information collected from the card holder about the transaction. Only available for Visa disputes.
- Details
Provides pertinent case-related information about the dispute, which will vary by card network.
Respond to a dispute
When you select Dispute Management, the Case View defaults to disputes that require action, ordered by Respond By date with the oldest cases first. You can also view cases that are under review or closed by selecting from the Case Status menu. Cases under review are ordered by Respond by date while closed cases are ordered by case ID. Dispute responses are time sensitive.
- To respond to a dispute
- Click View Details to open the dispute case.
- In the Tasks tab, do one of the following:
- Accept the dispute
Accepting the dispute means that you accept liability for the dispute. You will not have the option to add comments or documents. Once your response is submitted, you will have no further recourse.
- Decline the dispute
- Provide comments explaining why you decline.
- Add documents to support your claim, then click Upload. You can upload five files at a time, with a maximum of 99 files. Each card network has different evidence upload requirements.
The Dispute Management tool will help you provide the right document type and size for the network. Attachment guidelines are also provided below. - Confirm that you have uploaded all of the supporting documents. You will not be able to add additional documents once the case is submitted.
NOTE:
Use your PC or desktop to upload attachments. Attachments cannot be added using a mobile device.
- Review and then select the agreement to pay the fees associated with the case.
- Click Submit. If you declined or rejected the chargeback, the chargeback is reviewed and decided on based on the card network rules within required timeframes. Please note that we may ask for additional clarification and/or documentation depending on the review or card issuer response.
- Once submitted, your case will move into Under Review status.
Expired Response Timeframe
Try to respond to your disputes as soon as possible. If the timeframe to respond to the dispute has passed, you will receive a warning message when you respond. It may still be possible to attempt to submit your response to the card network, although there is a risk that your response may be rejected.
To continue, accept the acknowledgement of risk and liability and then click Continue to proceed.
- How long do I have to respond to a chargeback?
Chargeback times can vary depending on the card network. Response times below are calendar days from the initial dispute date..
| Card Network | Days to Respond |
|---|
| Visa | 15 |
| Mastercard | 23 |
| American Express | 15 |
| Discover | 15 |
| PIN Debit | 23 |
NOTE:
You have 15 days to respond to Retrieval Inquiry requests from American Express or Discover.
Dispute attachment guidelines
Ensure that your attached documentation is clear and legible and provide supporting documents in a supported file type. The file name cannot contain special characters (~ ` ! # % & = ,). Do not submit password protected files.
The file size of the attachments you provide when rejecting a dispute must conform to card brand requirements for file type and size. There is a maximum file size for each file and a maximum total file size for all the attachments. Files cannot be removed once uploaded and additional documents cannot be added once the response is submitted.
Documents Submitted in Error Cannot Be Deleted
Once you click the Upload button, files cannot be deleted; however, you can attach the correct file as long as you have not submitted the case. Before submitting, please add additional comments advising of the incorrect file. If you have already submitted the case, please contact us at 833.344.2324.
Table of dispute supporting documentation by card type| Card Type | Max. Individual
File Size | Total File
Size Max. | File Type |
|---|
| Visa | 2MB PDF | 10MB | .tiff, .jpeg, .pdf |
| MC | None | 15MB | .tiff, .jpeg, .pdf |
| Amex | 1MB | 10MB | tiff, .jpeg, .pdf, .mtif, .txt,
.xls/xlsx, .doc/docx |
| Discover | None | 15MB | .tiff, .pdf |
| PIN Debit | None | 10MB | .tiff, .jpeg, .pdf |