Reasons for a chargeback or inquiry
The type of evidence we send to the credit card company to resolve a chargeback or inquiry depends on the reason that the customer gave for the chargeback or inquiry. A customer might dispute a charge for one of the following reasons:
- Fraudulent
- Unrecognized
- Duplicate
- Product not received
- Product unacceptable
- Credit not processed
- General
Fraudulent
The chargeback is marked as “Fraudulent” if the cardholder didn’t authorize the charge. This is the most common reason for a chargeback and can happen if the card was stolen.
To deal with a fraudulent charge, we try to contact the customer who placed the order. The customer might have forgotten about the purchase, or the purchase might have been made by a spouse, friend, or family member. If the customer agrees that the charge was justified, then we tell them to contact their bank and say that they want to drop the chargeback. We still submit evidence to the credit card company, including the statement where the customer said they would drop the charge.
If we think that the customer is mistaken or not telling the truth, then we submit the following evidence to the credit card company:
- The date and time that the order was fulfilled
- The billing information that the customer used
- The IP address and country used for the order
- Shipping and tracking information for the order.
We examine all of our orders before they're fulfilled by capturing the payments manually. Capturing an order's payment manually enables us to view the full fraud analysis for an order before we make the decision to fulfill the order and accept the payment. By reviewing high-risk orders, we avoid potential chargebacks. Fulfilling high risk orders can result in a higher number of chargebacks.
Credit card companies can reverse funds for stolen cards after orders are fulfilled. Fraud analytics tools helps us to gather evidence for any disputed charges. However, the decision to reverse funds is made by the bank that issued the credit card, not by us. We do not cover charge reversals from banks.
Unrecognized
The chargeback is marked as “Unrecognized” if the customer doesn’t recognize the merchant name or location on their credit card statement.
To deal with an unrecognized charge, we try to contact the customer. Sometimes the customer might have forgotten about the purchase, or the purchase might have been made by a spouse, friend, or family member. If the customer agrees that the charge was justified, then we tell them to contact their bank and say that they want to drop the chargeback.
We still submit evidence to the credit card company, including the statement where the customer said they would drop the charge and include some of the following pieces of evidence:
- The date and time that you fulfilled the order
- The billing information that the customer used
- The IP address and country used for the order
- Shipping and tracking information for the order.
Duplicate
The chargeback is marked as “Duplicate” if the customer believes that we charged them twice for the same product or service.
If we didn't charge the customer twice, then we try to get in touch with them. We attempt to explain to them that the two charges were for separate products or services. If the customer agrees that the charge was justified, then we tell them to contact their bank and say that they want to drop the chargeback.
If the customer does not drop the chargeback or inquiry after we talk to them, then we submit evidence that the two charges were for separate products or services and include some of the following pieces of evidence:
- An explanation of the reason for the two charges
- Receipts that prove that the two charges were for different products or services
- Any communication with the customer where you let them know about the two charges
If we erroneously charged the customer twice for the same product or service, then we accept the chargeback.
Product not received
The chargeback is marked as “Product not received” if the customer believes that they did not receive the goods or services they purchased.
We try to get in touch with the customer first to figure out the problem. If we can resolve the problem with the customer, then we tell the customer to contact their bank and say that they want to drop the chargeback. We also include evidence that the customer agreed to drop the chargeback in the response you send to the credit card company.
If we can't resolve the issue with the customer, then we submit evidence to the credit card company that proves that the customer received the product or service before the chargeback was made. We could include some of the following pieces of evidence:
- The date and time that you fulfilled the order
- The billing information that the customer used
- Shipping and tracking information for the order
- For a digital product or service: an activity log that proves that the customer accessed the product or service.
Product unacceptable
The chargeback is marked as “Product unacceptable” if the customer feels that the product was received but was defective, damaged, or not as described.
We start by trying to get in touch with the customer. If we can resolve the problem with the customer, then we tell the customer to contact their bank and say that they want to drop the chargeback. We also send evidence to the credit card company that the customer agreed to drop the charge.
If the customer didn't try to return the product or cancel the service before the chargeback was made, or if we provided the customer with a replacement product or service, then we send evidence of that as well.
Whether we resolve the issue with the customer or not, we still send any relevant evidence to the credit card company including some of the following pieces of evidence:
- The date and time that you fulfilled the order
- The billing information that the customer used
- Shipping and tracking information for the order
- Descriptions or pictures of the products from your store that prove that they were as described.
Credit not processed
The chargeback is marked as “Credit not processed” if the customer informed us that the purchased product was returned or that the transaction with us was canceled, but we have not yet refunded or credited the customer.
We start by trying to get in touch with the customer. If we can't issue a refund after a chargeback has been made, we might be able to explain the situation or figure out another way to solve the problem. If the customer asked for an inquiry, then we issue a refund. If we can resolve the problem with the customer, then we tell the customer to contact their bank and say that they want to drop the chargeback or inquiry. We also send evidence to the credit card company that the customer agreed to drop the chargeback.
If you can't resolve the issue, and you think that the chargeback is not valid, then you should send evidence to the credit card company that you either gave the customer a refund before the chargeback or inquiry was made, or that the customer was not entitled to a refund. You could include some of the following pieces of evidence:
- Your refund and return policies
- An explanation of when and where the customer was informed of the refund policy
- Any emails or notifications you sent to the customer about the refund
- An explanation of why the customer was not entitled to a refund.
General
A chargeback is marked as “General” if it doesn't fit into one of the other categories.
To resolve a general chargeback, we start by trying to contact the customer so we can figure out what the problem is. If we can solve the problem for the customer, then we tell the customer to contact their bank and say that they want to cancel the chargeback. We then request that they provide us with a copy of the chargeback withdrawal letter from their bank. After we have evidence of the customer requesting to cancel the chargeback, we will need to submit this letter as evidence in the Chargeback response form on the order.
If the customer doesn't want to drop the chargeback, then we send evidence to the credit card company that the charge was valid. We could include some of the following pieces of evidence:
- Details about the products that were ordered
- The date and time that the order was fulfilled
- The customer's billing information
- The customer's IP address and country
- Emails or other communication you had with the customer
- USPS/FedEx/UPS or other online tracking or shipping confirmations
- Proof of prior refunds or replacement shipments.
The Chargeback Process
The chargeback process usually occurs in the following steps:
- The customer makes a purchase. Someone buys a product with their credit card. The transaction may take place in-store, online, or on a mobile point of sales (POS).
- The customer initiates a chargeback. The customer contacts their credit card issuer and disputes the charge on their statement. The issuer checks internal transaction data, like timestamps and location data. They look to confirm the customer made the purchase, or if it was fraudulent.
- The issuing bank reaches out to Baby Supplies Hub. The card issuer will ask our bank for evidence to prove the purchase was valid. In this case, we provide invoices, proof of delivery, receipts, or other evidence to counter the claim.
- The cardholder’s bank makes a decision. The bank will reverse the chargeback if the customer can show that the charge is valid. If the customer cannot provide evidence the purchase is valid, the customer is refunded and we are charged a fee.
- The bank informs the customer of the decision. The bank will inform the customer of its decision by mail, email, or phone. A customer may appeal the decision if they don’t agree with the verdict.