what a chargeback is, how Oolio deals with chargebacks, how you as the merchant can deal with chargebacks.
What is a Chargeback?
A chargeback is a transaction that has been successfully charged back on request of the account holder initiated through their issuing bank. The customer will dispute a transaction with their issuing bank and the bank will then work out whether they should ask the card scheme (eg Visa, Mastercard, AMEX) to reverse the charge made on the customers card or not proceed with the dispute claim. Most likely if the card issuer will initiate a chargeback unless they are able to quickly determine that the dispute is invalid.
How does Oolio Deal with Chargebacks?
Oolio takes chargebacks seriously and will converse with the Merchant to see whether the merchant would like to contest the chargeback. If a contest is chosen (fees and charges apply), Oolio will request as much evidence as possible from the merchant (e.g. receipts, CCTV footage/screenshots, etc.) to build a case to contest the chargeback as well as using in-house payments data and expertise. Once Oolio has presented the evidence on behalf of the merchant to the acquirer, The card issuer generally has between 30-45 calendar days to dispute the defence given.
It is to be noted that the chargeback process can take up to 12 months to completely finalise the process.
How can YOU (the merchant) prevent Chargebacks?
- Processing payments through Mail Order/ Telephone Order (MOTO) or eCommerce transactions have less security measures in place, this means that when you are processing these sorts of transactions extra consideration should be taken in the details and amounts being correct.
- Providing contact information so the customer has an opportunity to contact the merchant directly before disputing a transaction.
- Utilising security measures (e.g. video surveillance) to verify transactions occurring or goods being received when a charge is disputed.