Tips To Avoid Chargebacks - VeriFone VX520 User Manual

Tips to Avoid Chargebacks:

What is a retrieval request?
A retrieval request comes from a cardholder or their bank, requesting to see a copy of a sales draft or a mail order form. This
can be done for a variety of reasons ranging from verifying a sale to tax purposes and sometimes fraud reasons. Failure to
supply a draft promptly could result in a chargeback.
What is a chargeback?
A chargeback is the reversal of a sales transaction previously processed by your business. The amount of the previous
transaction is deducted from your account. Chargebacks are usually initiated by your customer (the cardholder), but can also be
initiated by the bank that issued their card. While some chargebacks cannot be prevented, the basic steps below prevent some
of the most common errors and help you avoid chargebacks when possible.
TIPS FOR ALL MERCHANTS
1. If you receive a "decline" or "do not honor" message through your terminal, software or telephone touch-tone capture,
DO NOT proceed with the transaction. DO NOT try again for an authorization; there is no protection for a transaction
after you have received a "decline" or "do not honor" message, even if you receive an approval code on a second
attempt.
2. Position company logo or marketing messages away from the transaction information. A company name, logo, or
marketing message printed across the face of the sales draft can make the image copies illegible.
3. Always use high quality white non-patterned thermal paper for transaction information, since colored or patterned paper
can render an imaged document illegible.
4. Always provide documentation in original size format. Avoid reducing images, as this will result in illegible images.
5. Check readability of all printed receipts and/or sales drafts daily.
6. Handle thermal paper carefully as any pressure during the handling/storage process causes black blotches, making
copies illegible. Extreme heat or cold will degrade the paper.
7. Change printer paper when colored streak first appears as this indicates the end of the roll. The streak diminishes the
legibility of transaction information.
8. Save all receipts and/or sales drafts for 18 months. Do not receipts or store sales drafts by cardholder name. You will be
required to locate the receipt or sales draft by card number and approximate transaction date only. We will not be able
to give you the cardholders name because cardholder names are not provided to us.
9. If you receive a call center or pick up card or "hold call" message through your terminal, call the authorization center and
follow their instructions.
10. Do not attempt to process transactions for any persons or businesses other than the approved merchant. This is a
violation of United States Code and may subject you to criminal prosecution.
11. Please refer to your Merchant Application and Agreement for your highest ticket limit. If you have a transaction greater
than this limit please contact us for instructions before you attempt to process it.
TIPS FOR FACE-TO-FACE TRANSACTIONS (RETAIL)
1. Whenever possible, obtain a swipe of the card through the terminal; verify that the card number on the terminal matches
the card number embossed on the card.
2. If you manually key in the card number to your terminal, you MUST manually imprint the card using an imprinter with
your correct merchant plate. Non-embossed cards MUST be swiped, do not manually key.
3. NEVER accept an expired card. Check valid to and from dates.
4. Compare the signature on the sales draft to the signature on the back of the card. The card must be signed. If the card
is not signed, return it to the customer, have them sign it and request to see their identification. If the signature on the
back of the card, does not match the sales draft or identification, DO NOT continue with the sale. If the customer refuses
to sign the card, DO NOT continue with the sale.
5. Obtain an authorization for the full amount of the sale (hotels may authorize within 15% of total, restaurants/beauty
salons within 20%). It a settled amount exceeds the allowed percentage, you must void the original transaction and re-
authorize for the new purchase total.
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