On 13th April 2018, Visa introduced new chargeback rules for all merchants, cardholders and banks to ensure that chargeback processes are applied consistently all over the world.
Under the new chargeback process, schemes will automatically determine if a chargeback is valid or not. If the chargeback is invalid, it will be returned to the cardholder’s bank – and merchants won’t need to do anything. This means merchants may receive fewer invalid chargeback disputes in future.
In some circumstances, merchants will still be able to dispute a chargeback. Schemes outline which chargebacks are automatic and which ones merchants can dispute. Some processing error or consumer dispute chargebacks can be disputed.
If merchants dispute a chargeback, they will need to provide documentary evidence to support their claim. If merchants haven’t provided satisfactory evidence, the dispute may become an automatic chargeback, and their account will be debited.
To reduce the risk of chargebacks caused by customer disputes, it’s important merchants keep detailed transaction records showing that each cardholder has received the goods or services they’ve paid for. This may include signed and imprinted sales receipts and any other relevant sales information.
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Please view our Merchant Agreement, Financial Services Guide and Operator and User Guides at our Merchant Help Centre.