ChargeBack

Chargeback Chargeback - Transaction reversal meant to serve as a form of consumer protection form fraudulent activity committed by both merchants and individual. Prompt merchant to provide us documents to support/ deny the claim.

Visa Chargeback Dispute - Cardholder to Issuer to Visa to Acquirer to Merchant. Visa may reject chargeback incorrectly filed or finalize a dispute immediately.

Requirements for Dispute Resolution: Before initiating a dispute, Issuer must attempt to honor the transaction. If the attempt fails and the issuer has already billed the transaction to the cardholder, the issuer must credit the cardholder to the disputed amount, IF the merchant refunds, we must close chargeback. This would be considered an error found.

Note: Charge back snooze is on 18 calendar days, until 12 calendar days until 30 calendar days are exhausted.

We Chime, must comply the following to process Dispute under Dispute Category 10 - Fraud scenario (Unauthorized transaction), Dispute Category 11 - (Authorization), Transaction authorization has expired.

Dispute Process Stage: 1. Dispute - After receiving a presentment, an issuer may initiate a Dispute under the conditions specified from applicable Dispute Category. Depending on the dispute type, we have a set number of calendar days to submit a chargeback from the date the transaction has occurred. Note: If a member disputes transaction beyond the time limit, we may not have the rights to submit a chargeback. If we chargeback right and do not have sufficient evidence to deny a member's claim

Full Chargeback lifecycle is 70 calendar days from the date filed with visa. - File chargeback - 30 calendar days to hear from merchant - 30 calendar days to respond to merchant - 10 calendar days to arbitrate

Note: Requirement for a chargeback - minimum amount $25.01, 120 calendar days from the settlement date.

Dispute Condition 11.2 Declined Authorization - An authorization request received a decline response or pick up response - IF there is no authorization, you could not check certain information at the Galileo Tool

Dispute Condition 11.3 No Authorization (Dispute Reasons), (Dispute Rights) - Authorization was required but was not obtained on the date specified in Visa Core Rules and Visa Product Service rules section 5,8,4,5, "Approval Response Validity Timeframes". - E.g. The amount was not authorized. - The difference between the transaction amount and the amount for which.

XV.

Chargeback Life Cycle

Chargeback Process and Common Reasons for Chargeback:

• A chargeback is the result of a payment card transaction being reversed and deducted from the merchant's bank account.
• It begins when a cardholder disputes charge posted to their bank statements.
• Cardholder communicate a dispute to their bank (Issuer) so they can file a complaint against merchant in Error Allegations disputes are disputes in which the member alleges an error occurred in the disputed transaction. Error Allegation VISA has 2 categories for EA chargebacks which is the Consumer and Processing Error ( Duplicate charge, Paid by other Means and Incorrect Amount).

Note: We have 2 networks. STAR IS A DIFFERENT NETWORK like Visa, to the identify check Network ID at the Inspector.

• Reason code 3000: Processing Error,
• Reason code 4000: Non Reg E
• Reason Code 5000: Cancellation and Returns. Note: For cancellation means we need to check if it is 1 time payment or recurring transaction.

Note: 3 processing under processing error: Duplicate Charge, Incorrect Charge, Paid by other means. Consumer error: Cancellation, CNP, Non-receipt, Returned Merchandise, Damage

Common Reason for Chargeback: - Paid by other means - Canceled recurring transaction - Card Holder Dispute - Credit Not Processed - Fraud: Card absent or present scenario - Duplicate processing - ATM cash not dispense (ATM CND) - Incorrect Amount Transaction

Chargeback Lifecyle: (Steps on charging a charge back) 1. Costumer Inquiry - Cardholder identifies a transaction which is either suspicious. 2. Issuer Investigation Claims - Perform initial review and determines whether more information is needed from the merchant to understand whether transaction is valid or not. Happens usually on Initial Investigation if Investigator ask for additional information on Zendesk.. 3. Issuer Files a Chargeback - Chime overturn the transaction. Issuer notifies acquirer of the chargeback by producing a chargeback reason code and submitting the relevant data. 4. Acquirer Reviews The Case 5. Merchant Disagrees with the Chargeback 6. Compile and Submit Re-presentment Case - Includes receipt, delivery information or records of communication with the merchant. 7. Acquirer Submit Re-presentment - Transmits all the compelling evidence 8. Issuer Review's the case 9. Issuer Returns Funds to Merchant 10. Second chargeback - if merchant send an uncompelling documents. We need to send a pre-arb. After that, we need to wait another 20 days 11. Acquirer Reviews the Case 12. Merchant Decides to Fight

In short; After the submit the charge back, we need to wait for 30 days for the merchant to reply - Review the Document - either Deny or Accept

Chargeback Lifecyle; Visa, Mastercard and Star Network 1. The Visa Charge back - Visa has recently streamlined its dispute categories, chargeback conditions and processing time frame. Visa chargebacks into one of two dispute workflows: Allocation or Collaboration. - Allocation (Fraud and Authorization) is a new dispute while Collaboration (Consumer Dispute, Processing Error) is a revised process information sharing between Chime, the merchant and the acquiring bank.