Chargeback Handling:

  • Do not issue credit once the chargeback process has been initiated. Acceptance of the chargeback will allow credit to be given to the cardholder.
  • For all Card Present transactions, either a magnetic card swipe, manual imprint, or both must be obtained along with a cardholder signature.
  • Disclose all policies regarding merchandise returns, refunds, or service cancellation to the cardholder at the time of the transaction.
  • Fulfill all sales draft requests, regardless of individual sale conditions, to avoid non-fulfillment related disputes.
  • Respond to all issues within a depute, particularly if the dispute involves the quality of goods or services provided. The following information should be included the 1st time:
    • For delivery merchandise, provide proof of delivery, tracking information, and the signature obtained upon delivery, if available.
    • Return policy disclosure
    • If partial credit is issued, explanation of partial credit.
    • Any correspondence or contact between yourself and the cardholder. Include any other information relevant to the chargback.
    • For Card Not Present transactions, provide proof of positive address verification (AVS) and cardholder validation (CVV2 / CVC2 / CID) - do not provide the actual validation numbers, only the response code.


Fraud Prevention Tips:


For Card Present Transactions:

  • Check the embossing and security features.
  • Swipe the card and match the numbers against the numbers displayed on the terminal.
  • Obtain a manual imprint if the card does not swipe.

For Card Not Present Transaction:

  • Obtain authorization.
  • Ask for the expiration date.
  • Use fraud prevention tools such as Visa's address verification service (AVS), card verification value 2 (CVV2), Verified by Visa, MasterCard Secure Code and MasterCard CVC2 code.


Avoid any confusion on your website:

  • Indicate the name of the merchant "doing business as" that will appear on the cardholder statement.

Follow clear delivery guidelines:

  • No deliveries to 3rd party addresses.
  • Advise of delivery status.


Card Verification:


A 3 digit number imprinted on the signature panel of Visa and MasterCard cards will help merchants who accept Card Not Present transactions to verify that the customer has a legitimate card in hand at the time of order. The merchant asks the customer for the code then sends it to the card issuer as a part of the authorization request. The card issuer checks the code to determine its valididty, then sends a result back to the merchant along with the authorization response.


Card Type Verification Codes

Visa - CVV2
MasterCard - CVC2
Discover and American Express - CID
JBC - CAV2


Returned Values

M - Card Verification Match

N - Card Verification Does Not Match

P - Card Verification Not Processed

S - Merchant Has Indicated That The Card Verification Value Is Not Present

U - Issues Is Not A Participant In The Card Verification Program


Address Verification Responses (US)

A - Address Matched But ZIP Code Does Not Match

E - Error Response for Merchant Category Code

N - Address and ZIP Code Do Not Match

R - Retry; System Unavailable or Timed Out

S - Issuer Does Not Support AVS

Address Verification Responses (International)

B - Street Address Matched for International Transaction but the Postal Code was not Verified Due to Incompatible Formats

C - Street Address and Postal Code Not Verified for International Transaction

D - Street Address and Postal Code Matched for International Transaction

F - Address Does Compare and 5-Digit ZIP Does Compare (UK)

G - Address Information is Unavailable; International Transaction; Non-AVS Participant

P - Postal Code Matched for International Transaction but the Street is not Verified Due To Incomplete Formats