Chargebacks & Dispute Resolution Flashcards
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Read the first 7 Chargebacks & Dispute Resolution flashcards as text
In Mastercard's chargeback process, what is the typical timeframe for an acquirer to respond to a chargeback with representment documentation?
Answer: 30 calendar days
Mastercard generally allows acquirers 30 calendar days to respond to a chargeback with representment, though specific timelines vary by reason code.
Which Visa dispute reason code applies when a cardholder claims they did not receive the goods or services they paid for?
Answer: 13.1 - Merchandise/Services Not Received
Visa reason code 13.1 covers disputes where the cardholder claims goods or services were not received, falling under the Consumer Dispute category.
What is the primary purpose of an arbitration chargeback in the card network dispute process?
Answer: To escalate an unresolved dispute to the card network for a binding decision
Arbitration is the final escalation step where the card network (Visa or Mastercard) reviews all evidence and issues a binding decision on an unresolved dispute.
A merchant sells digital downloads and a cardholder files a chargeback claiming 'unauthorized transaction.' Which action is MOST effective for representment?
Answer: Submitting IP address logs, device fingerprint, and download activity matching the cardholder's account
For digital goods, technical evidence such as IP address, device fingerprint, and usage logs that match the cardholder's account profile constitutes the strongest compelling evidence.
Which term describes the fee levied on a merchant's acquirer (and passed to the merchant) for each chargeback received?
Answer: Chargeback fee
A chargeback fee is charged to the merchant (via the acquirer) each time a chargeback is filed, regardless of the final outcome of the dispute.
In the context of dispute resolution, what does 'liability shift' mean?
Answer: Fraud-related chargeback liability moves from the acquirer/merchant to the issuer when EMV chip technology is used
Liability shift occurs when EMV chip-enabled transactions are processed correctly, transferring counterfeit and lost/stolen fraud chargeback liability from the merchant/acquirer to the issuer.
What is the recommended first step a payments risk professional should take when analyzing an unexpected spike in a merchant's chargeback rate?
Answer: Categorize chargebacks by reason code to identify the root cause
Categorizing chargebacks by reason code helps identify whether the spike is fraud-related, fulfillment-related, or authorization-related, enabling targeted remediation.