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A chargeback, in the simple sense, is when a transaction you administered gets disputed and the amount gets back to the payer itself. In other words, the particular sale is charged back right to you.
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Often a retrieval request will occur prior to a chargeback. A retrieval request is a particular request from the bank that has issued the card for the purpose of documentation related to the sale. A common cause for a retrieval request is that the particular cardholder fails to identify the charge.
Chargebacks can occur for a plethora of reasons. They can occur as a mistake, as or unsatisfied customer, or as a result of fraud. If they are not managed in the right manner, they can be both time-consuming and expensive.
In this article, We will talk about what to do if you get a chargeback for a particular payment that you have processed with QuickBooks payments.
Note: If you get a chargeback, make sure credit is not being issued to the card of the cardholder or your customer, or any kind of refund like cash or check.
How to Handle Chargebacks for QuickBooks Payments?
Step 1: What Needs to be Done When You Receive a Chargeback?
When any customer disagrees with a charge with their Credit Card Company or bank, the financial institution informs QuickBooks Payments.
QuickBooks looks for credits to the particular card when the chargeback is acquired. There are instances when the chargeback does not match the chargeback to the credit.
If you or the merchant generate a credit to the card post the chargeback to your account. In case it takes place, you need to send a credit-issued copy to the particular card or evidence that a refund was provided like the back or front copy of the check that was cashed refund.
In case the refund and sale amounts differ.
If a refund is issued outside the QuickBooks Payments. In case it happens, you must send payment proof.
If you do not provide a credit, or we fail to sync the credit to the chargeback, the issuer of the customer’s card credits the actual charge amount to the particular cardholder. The amount credited along with a fee USD 25 fee is then debited to the merchant. This particular fee is considered a penalty and is used to meet costs.
When this takes place, you will be notified about your retrieval requests and chargebacks via email. In the email, clear instruction will be provided for the next move.
Step 2: How to React?
You must ensure to abide by the guidelines in the email sent to you. Here is the list of the guidelines for the steps to be taken if you receive a retrieval request or a chargeback notice.
React to a Retrieval Request
You may get a retrieval request only. It can also happen that you get a retrieval request prior to a chargeback.
Generally, It means the cardholder fails to identify the charge and requires more details about it.
In case it happens, Intuit will inform you and email you the details below regarding the transaction concerned. Utilize the details to locate the actual charge in your particular records:
- Transaction Date
- Retrieval Request Cause
- QuickBooks Payments case Number
- The credit card’s first 4 and Last 4 Digit
- Transaction Amount
- Response date-wise
Note: These are the only information offered by the issuer of the card.
Abide by the instructions mentioned in the email to deliver the signed merchant copy of the particular credit card receipt. That particular merchant copy is called a Sales Draft. The credit card user requires a copy to review the sales draft.
You need to deliver the sales draft by the deadline mentioned in the email to evade any kind of chargeback.
React to a Chargeback
If you are a merchant, you may get an option to react to a chargeback. This particular response is called a rebuttal.
Note: You will not have this option in case a retrieval request steps in prior to the chargeback and you failed to respond to the particular retrieval request in the given deadline.
Intuit will email you guidelines and targets if you receive a retrieval notice or a chargeback. We comprise the email address, case number, fax number, and how to direct your particular response.
Intuit wants you to tell your side of the particular dispute experienced. You must reply with a letter that responds directly to the cause of the dispute of the cardholder.
Depending on the chargeback reason, you may also wish to offer associating documentation in order to back up the rebuttal letter. In case you email your documentation to Intuit, access PDF format to receive the optimum quality images.
Cardholder Asserts they Failed to get the Services or Merchandise
Evidence of signed pick-up or delivery
The Cardholder Asserts the Services or Merchandise Received are not as Defective as Described
- Proof that the cardholder did not try to give back the merchandise.
- Proof the services or merchandise are the same as the description.
- Proof of continuing negotiations between the merchant and the cardholder.
- External advice from a third-party professional, supporting the denial of the merchant.
The Cardholder Asserts Unauthorized Charge or Fraud
- A signed receipt copy if applicable.
- Strong proof to prove that the cardholder made the transaction and got the service or merchandise.
The Cardholder Asserts the Presence of a Duplicate Transaction
Proof that the cardholder was involved in two distinct transactions.
Step 3: Communicate with Customers in-between the Procedure
Keep attempting to fix any problems that your customer might have. Ensure to maintain records of such interactions. In case they think that you have fixed the situation, request them to pen down a letter mentioning that, and send it along with the documents. Not to mention, the customer must also get in touch with their card ordering the bank to stop the chargeback.
If your client informs you that they have canceled the chargeback, it is imperative that you appeal a copy of the retraction letter that their bank offers. It must be on the letterhead of the bank and mention that the difference has been removed or fixed in favor of the merchant. You must send the letter to Intuit as part of all your supporting documentation.
Step 4: Follow up on Your Rebuttal
Once the documents are sent, for the card issuer it can take around 90- days to get to a decision. The decision is sent via email.
In case the bank that is issuing thinks that you will not be able to dispute the chargeback, you will get no-recourse notice. It is important to note that the bank makes decision depending on the evidence offered by the customer and the merchant.
Final Words
We hope that this article has cleared all your doubts concerning how to handle chargebacks and retrieval requests for QuickBooks payments. Still, If you have any queries, you can reach out to Dancing Numbers team via LIVE CHAT.
Looking for a professional expert to get the right assistance for your problems? Here, we have a team of professional and experienced team members to fix your technical, functional, data transfer, installation, update, upgrade, or data migrations errors. We are here at Dancing Numbers available to assist you with all your queries. To fix these queries you can get in touch with us via a toll-free number
+1-800-596-0806 or chat with experts.
Frequently Asked Questions
Why it is Important to Acknowledge a Chargeback?
By acknowledging a chargeback, you admit that it is valid and the particular shopper must receive their money back, which can be the ideal option:
- The chargeback amount is quite less or the effort needed to react to the chargeback is expensive.
- The chargeback cause is genuine.
- Adequate evidence convincing enough to effectively challenge the chargeback is not present.
Why it is Important to Prioritize and Select Chargebacks to Represent?
It’s ideal to highlight representing chargebacks that enable you to get back as much revenue as deemed possible. Take into consideration the following criteria:
- The core transaction is valid, and the chargeback amount is big enough to make the process economical.
- You have adequate compelling proof to upend the chargeback, or you have evidence of a particular refund prior to the chargeback. You must dispute chargebacks always when you initially issued a repayment to a customer to evade debiting the disputed amount twice.
How Long do Customers need to Dispute a Charge?
For a majority of the disputes, a period of 120 days and 180 days from the actual sale or discovery date of issue is considered the time frame. However, this particular time frame may vary depending on the cause of the dispute.
Why do We Need to wait for so Long for an Answer to Compliance, Arbitration, and Good Faith?
The card associations have fixed the tenure for the steps of the procedure. This allows the cardholder, Intuit, the merchant, and the issuing bank to accumulate and offer documents for the purpose of review.
Why has QuickBooks Debited the Account for Chargeback without any Prior Notification?
When the chargeback is directed to QuickBooks Payments, the debit is processed automatically. This particular debit is sent to the merchant when the particular card-issuing bank has addressed all necessities of the chargeback. This follows as per the merchant agreement signed or received when your QuickBooks Payments account is signed or activated.
Why does the Chargeback Process Favor the Cardholder?
QuickBooks Payment has no direct connection with the cardholder. Intuit represents the merchant and offers precise information in order to help you fix any dispute experienced. The main purpose of Intuit is to fix such disputes.
Note: All solutions for a chargeback should follow the Card Association rules and regulations.
How to Prevent Yourself from Chargeback on Services and Products that need a Deposit?
The ideal option is to acquire the signatures of a cardholder. You must have them sign the cancelation or the return policy on all the orders. It is very crucial to handle the expectations of a customer. Make a note of your effort and work together with your customers to fix the issue.
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