At Atlas Merchant Services, LLC. we strongly believe in a secure processing environment for our merchants to process. To help, we offer the most current tips and guidelines for our customers.
| Charge Back Prevention |
1) Control risk for mail, phone and Internet transactions |
Mail order/telephone order (MO/TO) and Internet transactions are more prone to chargebacks. Here are some ways to reduce the risk of Mail Order charge backs: |
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Negative Database – By maintaining a database of problem customers, you can identify high-risk transactions, block specific credit card numbers and disallow future purchases. |
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Multiple Orders – By limiting the number of transactions per hour, day or week from a specific customer, you can limit a source of potential fraud. |
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Address Verification Service (AVS) – AVS helps you verify the address given to you by the cardholder at the time of sale. The AVS system indicates if there is a full, partial or no match on the address by comparing the customer’s address with the card issuer database. |
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Know Your Customers – You can avoid many charge backs simply by getting to know your customers – for example, capture the customer’s telephone number, then call back to verify the order. |
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Customer Service Phone Number – Make sure your customer service phone number is printed on the receipt. This makes it easy for customers to resolve disputes by phone rather than by charge back. |
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CVV2/CVC2 – Both Visa and MasterCard have this additional security feature printed on the back of their cards which you can verify as an additional security check. Contact Customer Service for more details on this feature. |
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2) Get a manual imprint and signature |
If you are unable to swipe a card through your point-of-sale terminal, you must obtain a manual imprint of the card. This manual sales slip must contain the customer’s signature, the transaction date, the authorization code, the purchase amount and merchant information — otherwise charge backs can result for these reasons: |
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• Fraudulent transaction – no cardholder authorization
• Fraudulent transaction – no imprint obtained
• Fraudulent transaction – signature not obtained
Verify that the signature on the back of the card and on the receipt matches the name embossed on the front of the credit card. |
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3) Respond Promptly to Requests for Transaction Copies |
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If a customer requests a copy of a transaction receipt through their credit card company, that request is forwarded to you through your Merchant Services Charge Back department. Respond to this request as soon as possible; slow or unfulfilled requests can result in one of the following charge backs:
• Non-receipt of requested item
• Requested copy illegible
Faxing is the preferred method of response; there is no recourse to these charge backs |
Protect yourself from retrieval request charge backs: |
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Keep a Record of Your Sales Drafts – Retrieval requests specify credit card number, transaction date and purchase amount — not customer name; file your sales drafts by date and credit card number. |
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Be Sure Sales Drafts are Legible – A hard-to-read sales draft that produces an illegible copy may be returned if it cannot be properly processed. Always check the ink cartridge or ribbon on your printer. |
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Make Your Transactions Easy to Identify – If cardholders do not recognize a transaction on their billing statement, they could question or dispute the purchase. If you send a purchase confirmation to the cardholder’s address that identifies the business name that will appear on the cardholder’s statement, you can eliminate many of these retrieval requests. |
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Put Your Customer Service Number on the Cardholder Statement – You can have your business phone number appear on the cardholder statement in the city/state field. This will allow the customer to contact you directly to inquire about the transaction. Please contact Customer Service if you are interested in having this done. |
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4) Credit / Refunds |
Refunds and credits can generate Credit Not Processed charge backs Prevent such charge backs 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. |
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5) Duplicate Transactions |
Avoid duplicate transactions that result in Duplicate Processing charge backs Be sure to: |
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Process one transaction at a time through your point-of-sale terminal
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Balance your deposits at the end of the day |
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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. |
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Check your batch totals at the end of every shift or business day to ensure your customers were not charged twice. |
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If you discover that a customer was charged twice in error, credit the cardholder’s account immediately. |
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6) Recurring Transactions |
Avoid Cancelled Recurring Transaction charge backs by taking immediate action when a customer asks to cancel a recurring transaction. This can reduce the risk of repetitive charge backs by the same customer. The most common causes of charge backs are returned merchandise, terminated services, disputes, errors, or fraud. |
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7) Merchandise or Service Not Received by Cardholder |
If a cardholder does not receive merchandise or services, a Non-receipt of Merchandise charge back may occur. Sale transactions must not be processed prior to delivery of the purchased product or services. To avoid charge backs, 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: |
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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. |
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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). |
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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. |
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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). |
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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. |
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Cardholder Disputes Quality of Merchandise/Service: It is difficult to dispute customers who challenge the quality of your merchandise or service. Such disputes can result in the following charge backs:
• Merchandise/Service not as described
• Cardholder dispute - not elsewhere classified
• Defective merchandise
To avoid such charge backs, make sure your customers are aware of your return policy at the time of purchase. Display the policy at the point of sale and print it on the sales slip in close proximity to the signature line. Maintain your return policy with consistency. If a customer disputes a transaction, try to resolve the issue directly with the customer and document your efforts to satisfy the customer. Always keep accurate records of each transaction; you may need to provide documentation in your response to any customer’s dispute.
Ensure proper packaging of shipped goods. Make sure the goods are suitable for the purpose for which they were sold. Make sure your customer has a clear understanding of how to return the merchandise. |
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9) Account Numbers Don’t Match |
Make sure the embossed card number and displayed account number match after swiping the card. Print the full account number on all phone and mail orders. Ask phone customers to read back the card number to ensure accuracy. Non-matching transactions can result in the following charge backs
• Account number not on file
• Non-matching account number |
(770) 623-4127 