A chargeback is a sale disputed by the cardholder or card issuer.
How long does a cardholder have to dispute a charge? Are there any exceptions?
For most disputes, the time frame is 120 days (U.S.) and 180 days (International). This is from the original sale or date of discovery of the issue. The time frame may vary based on the specific reason. AMEX (American Express) allows cardholders 1 year from the transaction date.
What makes AMEX chargebacks different from other chargebacks?
Their customers can issue as many disputes or retrievals they like. They have one year of the date of purchase to do so. When merchants don’t respond to an AMEX retrieval request by the deadline, it becomes a chargeback. Merchants should respond to every retrieval request, even when it's repeated.
Why did you debit my account without notifying me first?
When the chargeback is sent to QuickBooks Payments, an automatic debit follows. This debit is passed to the merchant when the issuer has met all of the requirements of the process. This conforms to your merchant agreement you signed or received during the initial sign-up and activation of your account.
Why are you taking the cardholder’s side without getting my side of the story?
QuickBooks Payments has no contact with any cardholder. We represent you, the merchant. We assist in providing the correct info on any dispute you might receive. Our goal is to help you resolve these disputes in your favor. All remedies to a chargeback must be in compliance with the Card Association rules and regulations.
How can I get a chargeback when I received an approval code on the transaction?
An authorization code verifies the card is:
- in good standing
- has not been reported lost or stolen at the time of the sale
- has sufficient funds available for the amount
An authorization code doesn’t guarantee you will not receive a chargeback.
If I get an approval code, how can I receive a chargeback for an Invalid Card Number?
The first six digits of a credit card identify the bank who issued the card. If the first six digits are valid, an authorization code can be granted, especially on smaller transactions. The system will stand in for the issuer and provide authorization in some of these cases.
How can I protect myself from chargebacks on specially ordered items that require a deposit?
Your best defense is to get cardholder signatures. Have them sign your cancelation or return policy on all orders. It is also very important to manage the customer’s expectations up-front. Document your efforts and work with your customers to resolve issues.
What if the original transaction was international and not based on U.S. denominations?
If a chargeback is made to the merchant, the amount will be based on the most current U.S. exchange rate on the day the final decision is made. Not the original date of the transaction.
Why do I have to wait so long for an answer to Arbitration, Compliance, and Good Faith?
Time frames are assigned by Card Associations for each step of the process. This allows both sides to obtain and submit documents for review. No one else has control over the length of time it takes for the Card Associations to rule on a case.