Every day the Heartland Dispute Department talks with merchants who want to know why there are chargebacks on their account. Many aren’t informed about the card brands’ rules and regulations or the risks associated with incorrectly running a transaction. In Part 1, we discussed best practices for card-present transactions. Here are card-not-present tips to help safeguard your hard-earned dollars from the risk of disputes.
Best practices for card-not-present transactions:
Obtain a valid authorization for every transaction.
If you receive a decline, require another form of payment.
Obtain positive AVS and CVV matches for every transaction.
Ship only to the address that received a positive AVS match when the transaction was authorized.
Require a signature on delivery for products shipped.
Face-to-face deliveries require imprint and signature. Example: Pizza delivery.
Always ensure, at a minimum, you collect the following details from your customer:
The card account number
The name as it appears on the card
The card expiration date as it appears on the card
The cardholder’s statement address
Note how the transaction was processed – phone, mail or electronic commerce
If you are taking an order over the telephone:
Record the time and date of your conversation
Make a note of the details of the conversation
If you are taking an order through the mail or via a fax:
Obtain a signature on the order form
Always retain a copy of the written order
Obtain proof of delivery whenever possible
Refund and credit policies
Mail order—Telephone Order—For proper disclosure, your refund and credit policies may be mailed, emailed or faxed to the cardholder. To complete the sale, the cardholder should sign and return the disclosure statement to you.
Internet orders—Your website must communicate its refund policy to the cardholder and require the cardholder to select a “click-to-accept” or other affirmative button to acknowledge the policy.
Terms and conditions of the purchase must be displayed on the same screen view as the checkout screen that presents the total purchase amount, or within the sequence of website pages the cardholder accesses during the checkout process.
Refunds: Issue a refund to only the same card originally charged.
Do not process a refund on a different card number
Do not refund with cash
Do not issue a check as a refund
Internet orders with certain characteristics can be tip-offs to possible fraud:
Orders that include several varieties of the same item
Orders made up of “big-ticket” items
“Rush” or “overnight” shipping
Shipping outside of the merchant’s country
Click here to learn more about Heartland’s e-Commerce solutions.