Retrieval & Chargeback Best Practices A Merchant User Guide to Help Manage Disputes Visa MasterCard Discover American Express October 2015 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 and MasterCard 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 chargeback’s 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. © 2015 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: 10/15 Confidential & Proprietary to First Data 2 of 240 Dispute Management Guide October 2015 Summary of Changes Description Location Added note regarding the ID being optional if the card is Chip Pin Chapter 4 Added VEPS information for Canada merchants Chapter 4 Added information regarding airline transactions evidence and digital Chapter 4 goods merchant having additional representment opportunities Added information regarding airline transactions evidence and digital Chapter 4 goods merchant having additional representment opportunities Updated the compelling evidence information for the Visa reason Chapter 4 codes Added information regarding CVC2 being U.S. Domestic only Chapter 4 Noted that Visa will implement changes to support revised floor limits Chapter 4 for VI and VE Noted that Visa will implement changes to support revised floor limits Chapter 4 for VI and VE Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with Chapter 4 53’s name change Added invalid chargeback note for AFD for MCC5542 Chapter 4 Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with Chapter 4 53’s name change Changed the name to reason code 53 and 59 Chapter 4 Added invalid chargeback note for AFD for MCC5542 Chapter 4 Added representment opportunities for Airline under how to defend Chapter 4 Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with Chapter 4 53’s name change Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with Chapter 4 53’s name change Noted the roll up of reason codes 41, 55, 59 and 60 into 53 along with Chapter 4 53’s name change Removed ATM Dispute from the title of the reason and added note this Chapter 4 portion has moved to Reason Code 34 Added ATM Dispute information to reason code 34 Chapter 4 Added information regarding CVC2 being U.S. Domestic only Chapter 6 Added information regarding CVC2 being U.S. Domestic only Chapter 6 Struck out the disclosure policy for rental vehicles and added the new Chapter 6 information from Visa Added information regarding CVC2 being U.S. Domestic only Chapter 6 Added the opening of no show for car rentals for non-peak season Chapter 6 Added information regarding CVC2 being U.S. Domestic only Chapter 6 Added information regarding CVC2 being U.S. Domestic only Chapter 6 Added information regarding CVC2 being U.S. Domestic only Chapter 6 Added information regarding CVC2 being U.S. Domestic only Chapter 6 Added the information about Visa’s guarantee reservation service Chapter 6 opening to additional merchants Added the countries impacted with the revised standards for Chapter 6 Developed by: First Data Payments Compliance Rev 4/15 Confidential & Proprietary to First Data 3 of 240 Dispute Management Guide Contactless and QPS Description of Change Location Added reason code 4886-UA05 and 4887-UA06 Chapter 4 for chip liability shift Added note regarding clarification of $1.00 Chapter 4 authorization for AFD transaction Description of Change Location Added reason codes F30 and F31 Chapter 4 Developed by: First Data Payments Compliance Rev: 10/15 Confidential & Proprietary to First Data 4 of 240 Dispute Management Guide Table of Contents Dispute Management Guide Authorization Overview...................................................................................................... 7 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 Fraud Disputes .............................................................................................................. 18 Compelling Evidence ................................................................................................ 30 Non-Receipt of Information .......................................................................................... 61 Authorization Issues...................................................................................................... 65 Cancelled/Returned ....................................................................................................... 88 Cardholder Disputes.................................................................................................... 103 Processing Errors ........................................................................................................ 138 Violation of Operating Regulations ............................................................................ 173 Chargeback Programs ................................................................................................. 175 Credit Adjustments ..................................................................................................... 179 Exceptions ....................................................................................................................... 180 Pre-Arbitration ............................................................................................................ 180 Visa Pre-Arbitration ................................................................................................ 180 MasterCard Pre-Arbitration .................................................................................... 181 Discover Pre-Arbitration ......................................................................................... 181 Pre-Compliance........................................................................................................... 182 Visa and MasterCard Good Faith Collection .............................................................. 183 Discover Good Faith Collection ................................................................................. 183 Best Practices for Specific Merchant Industries ............................................................. 184 Mail/ Telephone Billing (MO/TO) ............................................................................. 184 Ecommerce Billing ..................................................................................................... 187 Car Rental ................................................................................................................... 191 Airlines ........................................................................................................................ 197 Cruise Lines ................................................................................................................ 201 Lodging ......................................................................................................................