Frequently Asked Questions

Chargeback Protection

How do I avoid chargebacks?

It isn’t possible to avoid chargebacks entirely but merchants can take steps to reduce their susceptibility to them. The specific steps that particular merchants should take depend on their sources of chargebacks. Therefore any effort to reduce chargebacks begins with understanding chargebacks. But common, effective tactics include emphasizing customer service, being magnanimous with refunds, employing fraud detection and prevention tools, and taking advantage of other chargeback protection solutions.

Chargebacks

Chargeback vs. Refund: What's the difference?

While chargebacks and refunds are both methods of returning payment from a merchant to a cardholder, they are not the same. A refund is a voluntary return of payment, usually negotiated directly between the merchant and consumer, with no consequences for the merchant other than the lost revenue and potentially lost product. Chargebacks are the result of a much more complex process that involves multiple banks, processing costs, and fees. The consequences for merchants can be much more significant, as well.

Chargeback Terminology

What is a Merchant ID Number (MID)?

A merchant identification number (MID) is a unique alphanumeric identifier that is assigned to a merchant account. It is used to identify the account at the various stages of processing a transaction.

Chargeback Terminology

What is the MATCH List?

The MATCH List stands for Member Alert To Control High-risk merchants. It is a form of merchant processing blacklist. It lists merchants who have had merchant accounts terminated by their acquiring banks.

Debit Card Chargeback

How do I respond to a debit card chargeback?

Debit card chargebacks are not substantially different from credit card chargebacks. The proper response depends on the circumstances of the chargeback. If the merchant determines that it is erroneous or illegitimate and has evidence that can prove such a claim, it would behoove them to pursue representment. Otherwise, it would likely be best to accept the chargeback and try to prevent future chargebacks.

Chargeback Protection

What sort of chargeback protection is available for merchants?

Chargeback protection comes largely in the form of preventative measures. Some of this can be as the result of simple tools like chargeback alerts or more complex tools like Rapid Dispute Resolution (RDR) or Order Insight. But these tools are only effective if the merchant can integrate them into a chargeback prevention plan. Ultimately, it is incumbent upon merchants to protect themselves from chargebacks.

Chargeback Terminology

What is a BIN number?

The bank identification number (BIN) is the first four to six digits on a payment card. They identify the bank or financial institution that issued the card, the issuer's location, and the type of card.

Chargeback Time Limits

What are the Visa chargeback time limits?

Visa usually gives merchants 30 days to respond to each step in the chargeback process. The most notable exception is after a pre-arbitration chargeback. If the merchant wants to pursue arbitration, they have 10 days to respond.

Chargebacks

Does Venmo do chargebacks?

Yes. Venmo purchases are connected with a payment card or bank account, either by connecting with the user’s existing payment accounts or through a Venmo-issued Mastercard debit card. As a result, Venmo chargebacks are essentially the same as any traditional chargeback.

Chargebacks

What is a terminated merchant file?

Terminated Merchant File (TMF) is a general term for a merchant blacklist such as the MATCH List. The MATCH List is, effectively, the only TMF currently in use. TMF used to be the more common term but, practically speaking, TMF and MATCH List can be used interchangeably. Merchants who have been placed on terminated merchant file for having excessive chargebacks are prevented from opening a merchant account with a new credit card processor.