Chargebacks

What is a (Cards) chargeback?

A chargeback occurs when a cardholder disputes a transaction. This can be initiated within 180 days after purchase or delivery. The cardholder must provide a reason for the chargeback, which is then communicated to Buckaroo's Credit Card Acquirer.

How to handle a chargeback?

• Notification: Buckaroo will notify you via email.
• Response time: Quickly respond to the notification:

1. EMS: 7 days
2. Worldpay: 12 days
3. Worldline: 14 days
4. AMEX: 20 days
5. Provide evidence: Submit proof (e.g., delivery confirmation) as requested by eMail. The type of defence material you have to provide depends on the reason specified for the chargeback, as explained below under 'Which documents should I submit?'

Chargeback outcome

• Check the status of chargebacks under Transactions in the Plaza.
• If accepted, the transaction amount and fees are deducted from your balance.
• The outcome will be available in the Plaza or through a Dispute letter.

Reason codes for chargebacks

Visa reason codes

Fraud:

From mid April 2023, Visa will enforce the Visa Compelling Evidence 3.0 standard that has specific defense requirements for chargebacks with this reason code.

Authorization:

Processing Errors:

Consumer disputes:

Mastercard reason codes

Fraud:

Authorization:

Processing Errors:

Following the Mastercard dispute guidelines, processing error chargebacks are filed under reason code 4834 - Point of Interaction Error. This reason code covers the following scenarios:

The following reason codes can still be used, but will disappear in the future:

Consumer disputes:

Following the Mastercard dispute guidelines, consumer dispute chargebacks are filed under reason code 4853 - Cardholder Dispute. This reason code covers the following scenarios:

The following reason codes can still be used, but will disappear in the future:

American Express reason codes

Based on the region in which you have set up American Express, you will receive reason codes from one of these columns:

• Reason code North-America: Canada and United States of America
• Reason code: All other countries

Fraud:

Authorization:

Processing errors:

Consumer disputes:

Which documents should you provide per reason Code?

The requirements for defending against Chargebacks vary depending on the Chargeback reason. For all types of Chargeback Reason Codes, you must provide documents containing transaction details so that it substantiates your Chargeback defense.

Fraud - Card not present transaction

The cardholder claims he did not authorize or participate in the transaction. You must proof/demonstrate that the cardholder legitimately made the purchase of a service or merchandise.

Without a 3D Secure Liability shift, it is difficult to challenge a claim in this category. Defense documents should only be provided if all requirements are met. Buckaroo will request the respective 3DS Server logs for you as a Merchant.

If you haven't activated 3D Secure and still wishes to defend against the dispute, you must provide the following:

• Documentation that proofs that you have provided the service to the cardholder (confirmation email, copy of the invoice).
• Email correspondence with the cardholder.
• DHL-signed proof of delivery and AVS agreement.
• The GPS location of the courier indicating the product has been delivered.

Fraud - Card Present Transaction

The cardholder claims he did not give permission or did not participate in the transaction in a card-present environment.

To defend against this dispute, you must provide the following:

• Copy of a (signed) transaction receipt.

Duplicate processing/Paid by another means

The cardholder claims a single transaction was processed more than once.

To defend against this dispute, you must provide the following:

• Invoice copy of two separate orders.
• Documents to demonstrate that no other form of payment has been used.

Services not rendered/merchandise not received

The cardholder claims that goods or services as ordered were not received or not received on time.

To defend against this dispute, you must provide the following:

• Description of the goods/merchandise.
• DHL-signed proof of delivery and AVS agreement.
• Communications confirming the cardholder's possession of the goods.
• Explanation for the shipment delay.
• Confirmation email.
• Evidence that the cardholder received the service at the agreed-upon date and time.
• Communication with the cardholder after the payment.

Cancelled goods/services

The cardholder's bank has received a message from the cardholder stating that the goods have been returned or the services have been cancelled, but the credited amount has not appeared on the cardholder's statement.

To defend against this dispute, you must provide the following:

• Invoice copy / confirmation email.
• Evidence that the cardholder has received your cancellation or return policy and has not cancelled according to the publicly disclosed policy.
• Proof that the cardholder initially received the merchandise and did not return it.
• Proof that the cardholder has not contacted you to resolve the issue or cancel the purchase.
• Demonstrate that the cardholder has received your cancellation or return policy and has not cancelled according to the publicly disclosed policy.

Recurring transaction cancelled

A recurring transaction was processed after it was cancelled or after the cardholder's account was closed.

To defend against this dispute, you must provide the following:

• Demonstrate that the cardholder has received your cancellation or return policy and has not cancelled according to the publicly disclosed policy.
• Proof that the cardholder did not return the merchandise.
• Proof that the cardholder received a notice of impending billing 10 days before the transaction.
• Proof that services have been used between the billing date and the cancellation date.
• The cardholder requested a cancellation for a different date and that services have been provided until that date.
• Evidence that the cardholder is still interested in the service.

Goods not as described/defective

The cardholder claims that the goods were not as described or disputes the quality of the goods or services.

To defend against this dispute, you must provide the following:

• Evidence that the cardholder has not contacted you to resolve the issue or did not return the merchandise.
• Proof to demonstrate that the merchandise was as described or not damaged or defective.
• If the goods have been replaced/repaired, you should provide a DHL-signed proof of delivery.
• Email communication with the cardholder.

Counterfeit Goods

The goods were identified by the customer or a third party, such as a customs agency, as counterfeit.

To defend against this dispute, you must provide the following:

• Invoice copy.
• Neutral third-party opinion.
• Certificate of authenticity.

Misrepresentation of the purchased good and/or service

The cardholder claims that the terms of sale (Terms and Conditions) have been misrepresented.

To defend against this dispute, you must provide the following:

• Evidence that your terms and conditions were clearly communicated before the transaction was processed.
• Evidence that the cardholder acknowledged your Terms and Conditions (e.g., a screenshot of your website's checkout page showing that the cardholder accepted the Terms and Conditions by checking a box before proceeding with the payment).

Credit not processed

The cardholder claims that you agreed to refund the cardholder, but the refund was not processed, or that you did not process a credit when the cardholder cancelled or returned goods, cancelled services, or cancelled a guaranteed reservation.

To defend against this dispute, you must provide the following:

• Proof that a credit or chargeback issued by you was not handled by the issuer.
• Proof that the cardholder has not returned or has not attempted to return the merchandise.
• Proof that the cardholder's return does not comply with your written policy.

Mastercard 4853 – Cardholder Dispute

The cardholder contacts its issuer and claims that one of the following dispute reasons applies:

• Services not rendered/Merchandise not received.
• Cancelled recurring transaction.
• Goods not as described/defective.
• Counterfeit merchandise.
• Credit not processed.
• Addendum dispute or "no-show" hotel charges have been billed.
• Purchase transaction not completed.
• Credit has been posted as a purchase.

Since Mastercard has combined the above eight dispute reasons into one reason code, there is no opportunity to obtain additional information about the underlying reason why a 4853 dispute has been raised.

We recommend you will try to determine which dispute reason(s) may apply and provide as much evidence as possible to ensure the defence is valid. To defend against the last three of the above-mentioned dispute reasons, please find the defence requirements below.

If you suspect the cardholder is claiming an addendum or disputing a "no-show" hotel charge:

• Provide evidence to demonstrate that the cardholder is responsible for the addendum or the "no-show" fee.

If you suspect the cardholder is claiming that the purchase transaction was not completed:

• Provide evidence to show that the transaction was correctly completed and that the cardholder received confirmation of completion.

If you suspect the cardholder is claiming that the credit was posted as a purchase:

• Provide evidence to prove that the transaction was correctly posted as a credit to the cardholder's account.