- 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.
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
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