US Bankcard Services (2/3)

Refunds and credits can generate Credit Not Processed chargebacks. Prevent such chargebacks by quickly processing refunds. Your customer should always be made aware of a cancellation or refund policy in writing. Be sure to have your refund/cancellation policy clearly printed on the transaction receipt in close proximity to the signature line. If you use a website to sell services/merchandise, your refund/ cancellation policy should be on your check-out screen with an “I agree” button that the customer must click on prior to completing the transaction. If you do not give refunds or offer in-store-credit only, this is considered a refund policy and should be included on your transaction receipt. Refunds must be made using the same credit card as the original sale.Never refund a card purchase by cash or check. 5 Duplicate Transactions Avoid duplicate transactions that result in Duplicate Processing chargebacks. Be sure to: Process one transaction at a time through your point-of-sale terminal Balance your deposits at the end of the day Create a separate invoice describing each purchase if your customer makes more than one purchase in a day or makes purchases with a duplicate amount. Check your batch totals at the end of every shift or business day to ensure your customers were not charged twice. If you discover that a customer was charged twice in error, credit the cardholder’s account immediately. 6 Recurring Transactions Avoid Cancelled Recurring Transaction chargebacks by taking immediate action when a customer asks to cancel a recurring transaction. This can reduce the risk of repetitive chargebacks by the same customer. 7 Merchandise or Service Not Received by Cardholder If a cardholder does not receive merchandise or services, a Non-receipt of Merchandise chargeback may occur. Sales transactions must not be processed prior to delivery of the purchased product or services. To avoid chargebacks, you must obtain signed proof of delivery for all merchandise or services that are not delivered immediately at the point of sale. Here are some helpful hints: Installment Transaction – Disclose the terms of installment transactions in writing, including shipping, handling charges and taxes. Inform your customer if currency conversion rates will cause installment amounts to fluctuate. Association regulations prohibit merchants from including financing charges in the installments. Installment Intervals – The first installment must not be processed before the shipment of goods. Use the 30-calendar-day (or more) rule, or process installments on the monthly anniversary of the shipping date (must be the same date each month). Delayed Delivery – You can process delayed delivery transactions before delivery of the goods or service if described as “delayed delivery” on the transaction receipt. You may not process a deposit or a balance transaction receipt before the delivery of the goods or service. Prepayment – You may process a prepayment transaction if you advise your customer that he or she will be billed immediately. You may also process a full prepayment for custom-order merchandise (manufactured to the customer’s specifications). 8 Authorization Procedures A “decline” authorization response is a decline to the transaction. Do not continue to attempt authorization on the card. Do not try to obtain authorization by reducing the amount requested or repeating the request. When you receive a decline response, you should return the card to the customer and request another form of payment. If you are suspicious of a fraudulent credit card transaction, contact your voice authorization number and request a “Code 10” authorization. The operator will ask you a series of yes or no questions so the cardholder will not be alerted. You will then be given information on whether the card has been reported lost or stolen.