About Credit Card Processing

Merchant Card Processing Glossary

Card Processing Basics

chargeback
(when there's an error in processing the transaction or the cardholder disputes the transaction)

pricing

A chargeback is a transaction that has been disputed by the cardholder or issuer and must be resolved by the acquirer or the merchant.


Chargeback Support

Records Retention Policy
VISA and VISA International require a merchant to retain the sales draft for 12-months from the processing date. MasterCard requires a merchant to retain the sales draft for 18-months from the processing date. The only exception to the retrieval request retention timeframe period is in a "Point of Compromise" compliance case.


Frequently Asked Questions


Deposit Time Limits
All transactions receipts should be deposited within thirty days. The sooner the transaction is deposited the sooner payment will be made. For card-not-present merchants the transaction date is the shipping date, not the order date. Transactions deposited after 30 days may be charged back to the merchant.

To apply for an account, just complete our online form. A representative will contact you within 1 business day.


There are several reasons a transaction can be reversed:

Authorization error—a transaction was allowed even though the authorization was declined
Processing error—incorrect calculation on the sales draft, invalid account number, or expired card
Customer disputes—the customer denies taking part in the transaction, claims purchased merchandise or services were never received and an attempt was already made to resolve the dispute, mail order merchandise was defective, or a promised credit was never processed

There are several reasons a transaction can be reversed:

Authorization error—a transaction was allowed even though the authorization was declined
Processing error—incorrect calculation on the sales draft, invalid account number, or expired card
Customer disputes—the customer denies taking part in the transaction, claims purchased merchandise or services were never received and an attempt was already made to resolve the dispute, mail order merchandise was defective, or a promised credit was never processed

What do I need to do in response to a chargeback?

You will need to complete the Chargeback Adjustment Reversal Request form that was mailed to you and attach to it any documentation supporting your case. Please submit by fax or mail as long as it is received by the response date indicated in the chargeback adjustment advice box. Supply a swiped signed sales draft or a signed manual imprint sales draft. Once a chargeback notification has been received, do not issue a credit. You should notify customer service if a credit was issued for the transaction in dispute.

What is a chargeback reason code?

A reason code is a two digit number used to identify why a chargeback occurred. Reason codes may vary by VISA, MasterCard and Diners. The reason code is identified on your Chargeback Adjustment Advice. Refer to the list of chargeback reason codes as a reference. Example: Reason code 53 is "Not as described or defective merchandise." This indicates the cardholder purchased an item or service which they were not satisfied with.


What is a representment?

The returning of a chargeback by the acquirer to the issuing bank without merchant intervention.


What is a reversal?

The returning of a chargeback by the acquirer to the issuing bank with the merchant's intervention.

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