Chargeback and Copy Request Procedures
Chargeback
Merchants should understand that when accepting payment cards, there could be chargebacks. Improper handling of chargebacks (exception items) is time sensitive, costly and can result in a loss to your department. If you receive a chargeback from the card processor you must act within the specified period of time (usually by 30 days) and provide complete documentation of the transaction receipt, signature, and a statement of that transaction's particular circumstances. If a customer disputes the transaction and you can not provide a signed receipt or other documentation within the requested period of time, you will bear the loss. The income will be deducted from your FIS account. For Visa and MC you will also be charged a per chargeback fee.
Each payment card vendor has a different means of conducting chargebacks. "Timeliness" is always a consistent, vital part. It is essential that information be provided in a timely manner if you wish to have any success in disputing the claim.
Chargeback’s are processed by Capital Financing and Tax Management. Provided below, for each card vendor, are the methods in which chargeback’s are handled.
MasterCard/Visa/Diner’s Club
Payment Card Services receives a debit advice notifying us that a chargeback has been debited from the IU payment card bank account. Upon identification of each of these items Payment Card Services requests that Capital Financing & Tax Management prepare a negative cash receipt document (-CR) to reduce the income account specified by the Merchant. Payment Card Services will then contact the Merchant via campus mail, providing the specifics from the bank on the transaction in question.
The packet from Payment Card Services should contain a letter, which explains who you need to contact if you dispute the charge, the merchant chargeback advice, and the FIS (CR) document. If at any point during the chargeback cycle you need assistance, you may call Payment Card Services at 812-855-0586. In the event that you do not provide sufficient documentation or if the claim is lost, you bear the loss. However, if your documentation substantiates the transaction and IU wins the claim, your FIS account will be given back the income. Capital Financing & Tax Management will prepare the CR document and the merchant will be sent copies.
Discover/American Express
For Discover and American Express, chargebacks come in two forms. The first is a pending chargeback. In this type of case, the card company has given us 30 days to supply them with the circumstances of the transaction in question. If we provide them with the information and it resolves the chargeback, nothing else will happen. If we agree with the chargeback, or can not resolve it within the specified time, a request will be given to Capital Financing & Tax Management to prepare a negative CR and then Payment Card Services will forward copies of the information to you.
The second form is an immediate chargeback. In these cases, the procedures for Visa/MC/Diner’s Club are used.
Copy Requests
There are many reasons why a card holder would request a copy of a sales draft. Copy requests will not always result in a chargeback.
Copy requests are faxed or mailed to Payment Card Services by our processing bank for Visa and MC or the card companies for Discover and Amex. We forward them on to the contact we have on file for the affected department. It is the department’s responsibility to provide the requested copy.
Copy requests are time sensitive. You usually have 10 business days to comply with the request. If a chargeback results due to non-compliance to a copy request, your department will have no recourse and you will be charged for the transaction.
Contact Payment Card Services
