An Exploration of 40 Payment, Dispute, and Chargeback Components - Part 1

Confused and overwhelmed by the complexity of payment, dispute, and chargeback terminology? Stumped by words like “representment” and “friendly fraud” and feeling like you’re navigating a maze without a map? Don't be anxious; Order is Triumphant! This blog is your tour guide, prepared to direct you through the complex terrain of 40 crucial payment, conflict, and chargeback terms. We have broken down the jargon and made it simpler to make the journey an enjoyable experience. Put on your virtual pith helmet, take your metaphorical magnifying glass, and let's dive into the interesting world of payments, conflicts, and chargebacks. Are you up for tackling the puzzle? Let's get started! An individual who has and uses a credit or debit card for purchases is referred to as a cardholder. A business/individual engaged in selling products or offering services who receives payment from customers is known as a merchant. A bank or other financial body that distributes payment cards (such as credit, debit, or prepaid cards to be used in making purchases) to the cardholder is referred to as the Issuer. An acquirer is a financial institution which enables merchants to accept payments generated by card transactions, both in online and offline modes. Card Network is a financial intermediary that links issuing and acquiring banks, allowing cardholders to shop at different merchants. Transactions are transmitted and authorized through the network to ensure the seamless transfer of funds between the issuer and the acquirer. are all types of credit cards. Different kinds of credit cards include Visa, Mastercard, RuPay, and so on. Various credit cards such as Visa, Mastercard, RuPay, etc. are available. A disagreement arises when a cardholder challenges a transaction listed on their card statement. This is the first phase of the chargeback procedure. Chargeback is a method by which cardholders can challenge a payment made to their bank or card issuer. The purpose of this is to enable customers to reclaim money when they feel they have been charged unfairly for a product or service. Illegal use of a customer's card information to purchase large-ticket items or take money from the customer's account is known as payment fraud. A form of deception often encountered in e-commerce is known as friendly fraud. This refers to instances where a cardholder makes a purchase online and afterwards denies the charge, frequently stating that they did not receive a product or service, or have no recollection of making the transaction. Prior to arbitration, a cardholder can bring up a transaction dispute and the merchant is able to give their opinion before the matter advances to formal arbitration. When a cardholder or merchant is not content with the pre-arbitration decision delivered by the card network, they may initiate arbitration. This process resembles a court trial, as the card network serves as the judge and assesses all the evidence provided. A cardholder is issued a refund when the merchant sends back their purchase amount. A double refund transpires when a cardholder contacts their bank to dispute a transaction and also requests a refund from the merchant. A temporary credit provided to a cardholder by their issuing bank is referred to as a provisional credit during the chargeback process. Chargeback issuers utilize alphanumeric codes to indicate the cause behind a chargeback. Visa assigns code 11.3 to signify the “No Authorization” chargeback class. An acquirer imposes a chargeback fee on the merchant when a cardholder disputes a transaction which results in a chargeback. This fee is intended to cover the administrative costs associated with examining and investigating the dispute. Disputing a single charge within a transaction group is referred to as Partial Chargeback. A disagreement between a cardholder and a merchant concerning products/services is referred to as a consumer dispute. This type of conflict typically occurs as a result of inaccurate information, the failure to receive goods, defective goods and so forth. Submitting proof to refute a chargeback accusation is referred to as representment. The kind of activity engaged in by a merchant is indicated by a Merchant Category Code (MCC). MCC 5812 stands for Eating places and restaurants. Rewrite: He was a veteran of the war He was a seasoned veteran of the war. Be careful as you walk - that floor is slippery! Woah! Take it easy when you go - the floor can be slippery! We've only managed to tackle 20 of those troublesome terms, with another 20 waiting their turn in Part 2. Relax fellow payment adventurers! Your reliable companion will come back soon with lots of knowledge to decode language. Till we meet again, keep reading! To stay updated on the payment ecosystem, chargeback, and dispute nuances, follow us on LinkedIn, Twitter, Facebook, and Threads to receive informative content.

Source: https://backspace-tech.medium.com/your-pocket-guide-to-40-payment-dispute-and-chargeback-puzzle-pieces-part-1-018cf19c5be9?source=rss------fintech-5