What is this chargeback?
- purchased a second airline ticket after failing to receive the first one they purchased.
- canceled their trip because they did not receive the airline ticket they purchased.
- cancelled their airline ticket, but they were charged nonetheless.
- purchases a ticket from an airline that went bankrupt or stopped operating.
- was billed for a cash advance, but never received the money.
- paid for cash at checkout, but never received the money.
How to Respond
- Transaction documentation that shows the cardholder authorized and agreed to make the purchase.
- Written correspondence, receipts, work orders, photographs, or delivery confirmations that show that you delivered the goods or services the cardholder purchased.
- Transaction documentation that demonstrates the cardholder intended to take out a cash advance or receive cash at checkout, along with evidence that the cardholder received the cash they ordered.
- Evidence that the cardholder used the airline ticket they bought.
- Proof that the cardholder’s lost ticket application is invalid.
- Proof that you or the acquirer previously processed a refund to the cardholder in line with Discover’s Dispute Rules and Operating Regulations.
- Proof that the chargeback is invalid because it doesn’t comply with Discover’s regulations.
If the cardholder made a purchase remotely via a card-not-present transaction, you can also provide:
- A copy of the cardholder’s signature or ID, which should match the details they provided when they took delivery of their order.
- Proof that the cardholder opted to receive electronic delivery of goods or services.
- Information about the cardholder’s “e-mail or IP address, date and time of download, description of goods downloaded, or log documenting the receipt of downloaded material on or after the Transaction Date.”
Prevention Tips
1.Providing Accurate & Clear Product Listings
You’ll need to include exceptionally clear product or service descriptions on your website. To reduce the risk of chargebacks filed due to failed deliveries or incomplete orders, you should also provide buyers with up-to-date stock availability information, along with live delivery estimates prior to checkout.
2.Providing Order Confirmation & Tracking
You should send a digital invoice, receipt, email, and/or SMS confirmation to customers after finalizing a sale. All deliveries should come with shipment tracking information so that customers can monitor the status of their orders. This gives customers clarity about delivery timelines and may prevent them from filing chargebacks due to shipment delays.
3.Accurately Fulfilling Orders
Take steps to ensure that orders are accurate and complete. Before packaging and shipping an item, make sure that the quantity, type, and condition of your items are in line with the customer’s order. If you provide cash advances or cash at checkout, be sure to double check that the quantity of cash disbursed is identical to the amount charged.
4.Verifying Customers’ Identities for Cash Advances
Never disburse cash until a customer verifies their identity by providing their full personal details and a form of identification. To make cash advances more secure, implement SMS, email or app-based multi-factor authentication prior to disbursement. Finally, securely store all the transaction records for possible use as evidence during representment.
5.Having Clear Refund Policies
Draft a clear and fair return and refund policy that encourages customers to resolve their complaints with you before resorting to chargebacks. You can also be proactive about contact; for example, if a customer makes a purchase for a product that’s out of stock, immediately issue a refund, or try to come to another mutually agreeable resolution.
6.Make it Right
If a customer complains about non-receipt of a product or service, promptly conduct an internal investigation and resolve the claim by delivering the product or issuing a refund. If you find that you were at fault, consider providing the customer with a small discount for future orders.