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A Chargeback /wiki/spaces/PAL/pages/959610994is a credit or debit card charge that is forcibly reversed by an issuing bank.

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See each topic below for best practices to prevent chargebacks or download our one-pager:

View file
namePayrix_TransactionRisk_Chargebacks.pdf

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Authorization Procedures

When attempting to process a transaction, a “decline” code during the authorization stage indicates that the card issuer does not approve the transaction.

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CNP transactions, such as Mail Order, Telephone Order and Internet transactions, are more prone to chargebacks due to lack of in-person verification options.

Tip

Merchants can add controls to reduce the risk of chargebacks for fraudulent or unauthorized transactions:

  • Maintain a negative Database.

  • Limit the number of transactions by a single cardholder.

  • Use an Address Verification Service (AVS).

  • Employ strategies that will allow you to know your customers.

  • Publish a customer service phone number

  • Use CVV2/CVC2 security features.

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