Retrieval & Chargeback Best Practices A Merchant User Guide to Help Manage Disputes Visa MasterCard Discover American Express April 2018 www.FirstData.com Dispute Management Guide This guide is provided as a courtesy and is to be used for general information purposes only. First Data shall not be responsible for any inaccurate or incomplete information. The matters contained herein are subject to change. Individual circumstances may vary and procedures may be amended or supplemented as appropriate. This is not intended to be a complete listing of all applicable guidelines and/or procedures. No information contained herein alters any existing contractual obligations between First Data and its clients. The purpose of this guide is to provide merchants and their back office staff with additional educational guidance as it relates to Visa, MasterCard, Discover, and American Express dispute processing. This manual contains information that relates to specific industry processing environments and includes best practices for doing business and avoiding loss as it relates to fraud and/or chargebacks. This guide does not take away from the terms or conditions outlined in your merchant processing agreement or replace current operation regulations. All chargebacks should be reviewed and presented as individual cases. Although the reason codes may be the same, supporting documentation required to remedy individual chargeback scenarios may vary. © 2016 First Data Corporation. All Rights Reserved. All trademarks, service marks and trade names referenced in this material are the property of their respective owners. This document contains confidential and proprietary information of First Data Corporation. Review or distribution by individuals other than the intended recipients is strictly prohibited. This document, and any information contained herein, may not be copied, reproduced or distributed in any manner whatsoever without the express written consent of First Data Corporation. Developed by: First Data Payments Compliance Rev: 04/17 Confidential & Proprietary to First Data 2 of 234 Dispute Management Guide April 2018 Summary of Changes Description Location Description Location Description Location Developed by: First Data Payments Compliance Rev 04/17 Confidential & Proprietary to First Data 3 of 234 Dispute Management Guide Table of Contents Dispute Management Guide Authorization Overview...................................................................................................... 6 Transaction Overview ......................................................................................................... 9 Retrieval Overview ........................................................................................................... 11 Retrieval Request .......................................................................................................... 11 Retention Timeframe .................................................................................................... 13 Delivery......................................................................................................................... 13 Fulfillment..................................................................................................................... 13 Requirements for a valid fulfillment ............................................................................. 14 Retrieval Request Workflow......................................................................................... 15 Chargeback Overview ....................................................................................................... 16 Chargeback Workflow .................................................................................................. 17 Compelling Evidence .................................................................................................... 17 Fraud Disputes .............................................................................................................. 21 Non-Receipt of Information .......................................................................................... 62 Authorization Issues...................................................................................................... 65 Cancelled/Returned ....................................................................................................... 88 Cardholder Disputes...................................................................................................... 96 Processing Errors ........................................................................................................ 136 Dispute Compliance .................................................................................................... 167 Credit Adjustments ..................................................................................................... 173 Exceptions ....................................................................................................................... 174 Pre-Arbitration ............................................................................................................ 174 Visa Pre-Arbitration ................................................................................................ 174 MasterCard Pre-Arbitration .................................................................................... 175 Discover Pre-Arbitration ......................................................................................... 175 Pre-Compliance........................................................................................................... 176 Visa and MasterCard Good Faith Collection .............................................................. 177 Discover Good Faith Collection ................................................................................. 177 Best Practices for Specific Merchant Industries ............................................................. 178 Mail/ Telephone Billing (MO/TO) ............................................................................. 178 Ecommerce Billing ..................................................................................................... 182 Car Rental ................................................................................................................... 185 Airlines ........................................................................................................................ 191 Cruise Lines ................................................................................................................ 195 Lodging ....................................................................................................................... 198 Petroleum (Automated Fuel Dispenser - AFD) .......................................................... 205 Visa/MasterCard Programs & Services .......................................................................... 207 Discover Programs & Services ....................................................................................... 220 No Signature / No PIN Required ................................................................................ 221 Address Verification Service ...................................................................................... 222 Security Code .............................................................................................................. 222 Developed by: First Data Payments Compliance Rev: 04/17 Confidential & Proprietary to First Data 4 of 234 Dispute Management Guide ProtectBuy Secure Program ........................................................................................ 222 Keyed No Imprint Program ........................................................................................ 225 No Signature Program................................................................................................. 225 Safekey ........................................................................................................................ 226 Glossary .......................................................................................................................... 227 Developed by: First Data Payments Compliance Rev 04/17 Confidential & Proprietary to First Data 5 of 234 Dispute Management Guide Chapter Authorization Overview An authorization is a request for verification that the cardholder’s account is in good 1 standing with funds available at the time of the request. An authorization approval code indicates the availability of credit/funds on the cardholder account at the time the authorization is requested. It does not warrant that the person presenting the card is the rightful cardholder, nor is it Approved – Transaction is approved by a promise or guarantee the sale issuer/company that governs the payment card will not be subject to a Referral - Message indicating that the merchant chargeback. The following are must call their authorization center and follow some examples of responses instructions provided received from the card issuers. Declined - Transaction was not approved by Failure to obtain an issuer/company that governs the payment card. authorization approval The transaction should not be completed. code for a sales Request another form of payment transaction may result in Pick Up Card - Card Issuer wants to recover the a chargeback card. Do not complete the transaction. Ask for another method of payment and if you feel comfortable recover the card from the cardholder All Networks Note: Follow