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In which cases card brands can rule out decision against merchants


There are a number of reason codes which apply to different situations. Merchant can benefit in a number of ways, but merchant must keep records and be ready to dispute.

 Every business, including card brands, have a slogan that says “customer is always right”. Banks and cardholders are considered customers. Which means they can’t do wrong. Most of the time everyone turns blind eye towards merchants. There are cases when card brands can rule out decisions against merchants. Especially, when they have all documentations of the transactions. Merchants also have to ensure that their system is secure so that there are least chargebacks.

Card brand Rule out decision against Merchants

According to rules everyone has a right, including merchants. Liabilities and rights for merchants fully depend on the rules and codes associated with disputes. Every case effects differently, and merchants have to deal with them professionally. Have a look at cases when decisions are in favor of merchants:

  • Cardholder can’t file disputer for cash-back portion of cash-back transaction
  • If item arrived on a later date, then customer must return the item before seeking a chargeback. Proof of returning the item should be provided.
  • If item has been returned then issuer can’t process the chargeback for 15 calendar days from the time of return. This will give enough time to merchant to offer refund. But issuer can file a chargeback if 15 days have been passed.
  • There are many reason codes that describe how to solve problems related to transactions before filling chargebacks. Issuer have to verify this action.
  • Time limit of chargeback depends on reason code. Customers have to go for chargebacks in a limited number of days. Time starts when a transaction was first posted, and the day when statement was issued to the cardholder.
  • All of the chargeback processes should be completed before proceeding to arbitration process.
  • If merchant has mentioned clearly about cancellation policies, and evidence is available. Also if customer claims that product was defective, didn’t arrived, or it was different from what was posted on website. Merchant can show strong evidence and bank will be forced to rule out the decision.

Card brand

All the rights that are given to merchant during chargeback process, the representment is at the top. Fighting chargebacks shouldn’t be consider as a right, it a responsibility for every merchant.

Issuers won’t file many chargebacks against a merchant who disputes them constantly. Merchants have to fight with system and banks to keep the business safe. Disputing a chargeback can work in favor of merchant. It sends a powerful message to both banks. If banks won’t accept many chargebacks against you, it means that your business will have less risk, low costs, and more profit.

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