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What is a chargeback? How does one happen?
Just received a chargeback?
Find out what to do if you’ve just experienced a chargeback.
A chargeback happens when a customer disputes a card transaction. Chargebacks can be costly for merchants–you could lose the dollar amount of the transaction, the related merchandise, and incur additional fees charged by the payment card networks. Be prepared: it can take over a year to resolve a chargeback.
How to help reduce chargebacks
Card present (in-person transaction) |
Card not present (mail, phone order, online transactions) |
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Manual key entered transactions present a high risk for chargebacks. Always capture an imprint of the credit card. Use chip and PIN or tap whenever possible. |
Register for all available fraud-reduction tools, including 3D Secure (3DS), Secure Address Verification Service (AVS) and Card Verification Value (CVV2); For additional information contact your Payment Solutions Advisor. |
Be clear about return, refund, and cancellation policies. State them clearly at the time of purchase: pre-printed on your receipts, with written/electronic agreement from the customer. |
Pictures of the credit or debit card and/or customer identification are not accepted as evidence by the payment card networks, regardless of whether a valid authorization was obtained. |
If authorization is declined for the full amount of the sale, do not attempt subsequent authorizations by "splitting" the transaction. Ask for a different method of payment. |
For proper disclosure, refund and credit policies may be mailed, emailed, or texted to the cardholder, or for e-commerce transactions, "click to accept" conditions before final checkout. |
Obtain a customer signature to demonstrate proof of delivery of goods, that a service was provided, and that disclosure statements are agreed to, when applicable. |
Keep customers informed on the status of their transactions, allowing for cancellation if delivery is delayed. |
Ensure your business name is recognizable to your customers. A cardholder may initiate a chargeback if they do not recognize the business name that appears on their statement. |
Be wary if a sale is "too good to be true" or if a customer provides many different credit or debit card numbers for multiple declined authorizations. |
What can happen during a chargeback dispute?
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Chargeback
Cardholder initiates a dispute and TDMS debits the Merchant. If the Merchant chooses to challenge the dispute, TDMS reviews and returns it to the card-issuing Bank.
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Pre-arbitration
Cardholder's Bank reviews evidence with cardholder. If Cardholder continues dispute, Issuing Bank will notify TDMS of intention to escalate to Arbitration if not settled.
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Arbitration
Evidence from Cardholder and Merchant is presented to the payment card network. Claim is assessed there and ruled upon.
For any current chargeback disputes call us at 1-800-363-1163
You received a chargeback. Now what?
If you wish to dispute the chargeback, you must respond to TD Merchant Solutions within 15 days of the debit from your account. To help remedy the dispute, send us as much information as possible.
Email TD.MSChargebackSupport@td.com with the subject line ‘Chargeback MID# (your Merchant Identification Number)
Or fax to TD Merchant Solutions at 1-888-257-6907
Documents required to dispute chargebacks
- Legible copies of the transaction receipt(s)
- Proof credit was issued
- Any e-mails, contracts, or text messages between you and the cardholder
- Signed proof of delivery
Need more help?
Follow the appropriate links:
Mastercard for merchants
Visa for merchants
AMEX for merchants
Other online resources
We're here with advice to help you discover more tools and resources for transaction security.