The cardholder is entitled to object to the invalid payment, and the merchant is entitled to object to the illegal refund. This process is called chargeback representment: If you need to prevent a chargeback, follow these rules:
You must have documents that relate to the claim and prove that you are right. Each chargeback reason code has certain standards as to what evidence can be used against it, so always look at the reason code to determine what you need.
Issuers will be held liable for a 10.4 (Fraud – Card Absent Transaction) dispute when the following information is provided by the Merchant via Order Insight and the conditions are met:
- Minimum of two “historical” transactions for the same PAN settled more than 120 days and less than 365 days prior to the dispute date.
- At least two of the following data elements are the same in the disputed and historical transactions:
- Customer Account ID
- IP address
- Delivery address
- Device ID
- Device fingerprint
- One of the two data elements must be either IP Address or Device ID or Device Fingerprint.
- No prior fraud was reported on the historical transactions. Historical transactions may have been disputed but not for any Fraud reason code.
- Product description for each item purchased is provided by the merchant on the disputed and historical transactions.