Chargebacks & Dispute Resolution Flashcards
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Read the first 7 Chargebacks & Dispute Resolution flashcards as text
A merchant receives a chargeback under Visa reason code 13.1 (Merchandise/Services Not Received). Which document would MOST effectively rebut this dispute?
Answer: Signed delivery confirmation from a major carrier showing delivery to the cardholder's address
Signed proof of delivery showing the cardholder's address received the goods is the strongest evidence to rebut a 'not received' chargeback.
Under Mastercard's dispute resolution framework, what is the maximum number of days an issuer has to file a chargeback after the transaction processing date for most dispute categories?
Answer: 120 days
Mastercard generally allows issuers 120 days from the transaction processing date to file a chargeback for most dispute reason codes.
A customer claims they returned merchandise but the merchant disputes receiving it. This scenario BEST describes which chargeback condition?
Answer: Credit not processed
When a customer has returned goods and a credit has not been issued, the appropriate chargeback reason is 'credit not processed.'
During the pre-arbitration phase of a Visa dispute, the issuer rejects the merchant's representment. What is the merchant's NEXT available step?
Answer: File for arbitration with Visa
If pre-arbitration is rejected, the acquiring bank may escalate to formal Visa arbitration for a binding ruling.
Which metric BEST measures the financial impact of chargebacks on a merchant relative to their overall sales volume?
Answer: Chargeback-to-transaction ratio
The chargeback-to-transaction ratio (total chargebacks divided by total transactions) is the primary metric card networks use to monitor merchant chargeback performance.
A cardholder files a dispute 95 days after a transaction, claiming the service was not as described. Under Visa's rules, which outcome is MOST likely?
Answer: The issuer cannot file the chargeback because the dispute window has expired
Visa's standard dispute window is 120 days from the transaction date or expected delivery date, and a filing at 95 days would still be within that window; however, if the 120-day limit had passed, the chargeback would be time-barred.
In the context of chargeback fraud prevention, what does 'order velocity monitoring' refer to?
Answer: Tracking the number of orders placed by the same customer or card within a short time period
Order velocity monitoring detects suspicious patterns where the same card or customer places multiple orders rapidly, a common indicator of fraudulent activity.