CHARGEBACK

GUIDE

www.globalpaymentsinc.co.uk
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This step by step guide UNDERSTAND WHAT A

is designed to help you
if you ever receive a CHARGEBACK IS AND WHY
chargeback whilst taking IT HAPPENS
card payments with
A chargeback is a transaction that has been disputed
us. You will also find by the cardholder or card issuer and returned to us.
out about some of the When a chargeback is received from a card issuer,
more obvious reasons the debit for the amount of the disputed transaction
is also received.
chargebacks happen and If a cardholder or the Issuer disputes A chargeback could happen for a variety
why they sometimes a transaction, they may question its
validity and raise a chargeback. We’re
of reasons, and some of the more
common are listed below:
can’t be defended. obliged to advise you of the details so
that the Issuer may make a decision
• Fraud, where the transaction was
completed without the genuine
based on all the details placed cardholder’s participation or authorisation.
before them. We’re also obliged to
• Authorisation related, such as the
debit your account for the disputed
transaction was completed without the
transaction during the dispute.
required authorisation or authorisation
To enable us to process card was declined.
transactions, we must be a member of • A processing error which could be a
the card schemes (MasterCard and Visa) duplicate processing of a transaction
and we must abide by the rules and for example.
regulations they have created. When
• Cancelled/returned goods or service,
you sign your agreement with us, you
where the cardholder has cancelled
agree to abide by these terms as well.
an order or returned goods but hasn’t
Each chargeback has specific rules, received a refund. This could be
regulations and time limits which because it hasn’t been processed or
we must adhere to. These are set by the refund has not been credited to
MasterCard and Visa and influence the the same cardholder account that was
actions we are able to take when dealing originally debited.
with chargebacks.
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Global Payments - Chargeback Guide

How Is A ‘Request for We Will Let You Know If

Information’ Different? You Get A Chargeback
A Request for Information (RFI) We will notify you in writing if you get
happens when a cardholder or card a chargeback, before we apply the debit
issuer queries a transaction, but the to your account. Whether we can defend
debit amount for the transaction is the chargeback depends on whether
not sent. It’s purely a request for the the transaction has fully complied with
transaction information. the rules set up by MasterCard or Visa.
We make a reasonable attempt to
We will write to you and ask for
notify you before applying the debit,
copies of your transaction documents
however it may need to be applied
when we receive an RFI. Please be
prior to the notification. So you may
aware that, if we do not receive the
find that the transaction is taken from
requested documents from you in the
your account before you have received
time requested, we may later receive a
notification from us.
chargeback that we are unable to defend.

We make a reasonable attempt to notify you

before applying the debit, however it may
need to be applied prior to the notification.
So you may find that the transaction is taken
from your account before you have received
notification from us.
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Global Payments - Chargeback Guide

What To Do If You Get The Result

A Letter If your response enables us to defend
the chargeback, we’ll credit your bank
If you receive a chargeback or RFI
account whilst we attempt to defend
letter from us, you must return all
the chargeback. If the card issuer still
requested information within the
continues with the chargeback, we’ll
timescale outlined in the letter. Failure
notify you.
to do this may prevent any further
action in defending your chargeback. If your response doesn’t enable us to
defend the chargeback, we’ll notify
you in writing why and the debit
The Defence previously applied to your bank
account will remain.
Once your response is received, we’ll
review it to see if it is sufficient to It is important to note that, despite
enable us to defend the chargeback, in every effort made by us to defend
accordance with the Card Scheme Rules. your chargeback (if we are able to do
so based on Card Scheme Rules), the
responsibility to pursue a chargeback
remains with the Issuer and not us.

If you receive a
chargeback or RFI letter
from us, you must return
all requested information
within the timescale
outlined in the letter.
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Global Payments - Chargeback Guide

COMMON QUESTIONS WE 01
Why Am I Seeing Chargebacks
For My Online Payments?
SEE ABOUT CHARGEBACKS If you are taking payments where the card or
cardholder is not present, then you may be
liable for the chargebacks. The responsibility is
We’re asked a lot of questions about chargebacks, with you to ensure the payment is being made
by the genuine cardholder.
and we know that they can be frustrating. Not all
We highly recommend that if you are taking
chargebacks can be defended and it is essential online payments, you should include 3D
that you ensure that the rules set out by the Card secure services such as Verified by Visa and
MasterCard SecureCode, where your customer
Schemes are followed. can authenticate themselves as the genuine
card holder. This adds an extra layer of security
We have put together some of of reasons, and whilst we do everything
and chargeback protection to your online
the more common issues raised we can to support our customers, we are
payments, to help you protect your business.
about chargebacks for you. This is obliged to abide by Card Scheme Rules
by no means an exhaustive list as when handling every chargeback.
chargebacks are raised for a variety

If you are taking payments

where the card or
cardholder is not present,
then you may be liable for
the chargebacks.
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Global Payments - Chargeback Guide

Why Is Global Payments

03 Unable To Defend My
Chargeback?
Not all chargebacks are defendable.
If you don’t have all the supporting
materials that we need, then we’ll be
unable to defend your chargeback.
Or if we don’t receive the documents
in time, reduces our chances of
defending the chargeback.
It’s also wise to note that, just because
the payment has been authorised
at the point of purchase, does not
guarantee the payment. Taking all
of the necessary steps at the time of
purchase may still not ensure that you
won’t get a chargeback on it. The card
could be fraudulently used but not yet
reported, for example.

The Payment Was

02 04 Authorised - Why Is It
Being Disputed?
A transaction authorisation cannot
verify that the genuine cardholder is
I Am Getting A High conducting the transaction or guarantee

Number Of Chargebacks
hargebacks that payment. Authorisation checks that
at the time of the transaction, the card
When I Am Posting isn’t reported lost or stolen, and that

Goods To Customers
stomers And the genuine cardholder has sufficient
funds available.
They Say They
ey Haven’t
Received Them?
em?
If you’re seeing a high
gh number of
chargebacks from goods
oods not being
delivered, then opting
ng to use ‘Signed
For’ mail when posting
ting goods can help
reduce this issue.
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Global Payments - Chargeback Guide

If The Transaction Was

05 Fraudulent, Then Why
Did Global Payments
Allow It To Go Through?
As mentioned, a card used for a
fraudulent transaction may not have
been flagged as being lost or stolen
at the time of purchase. Or the card
details may have been scammed and
the genuine cardholder is unaware It’s only when the card
that a counterfeit card is being used.
In these cases, the cardholder’s bank
has been flagged as lost/
and Global Payments are not aware at stolen, or the counterfeit
the time of the transaction that there’s has been identified, that
anything criminal happening with the
card and payments continue to go the payment can be
through as usual. stopped and you are made
It’s only when the card has been flagged aware with a notification
as lost/stolen, or the counterfeit has
on your terminal.
been identified, that the payment can be
stopped and you are made aware with a
notification on your terminal.

Why Can The Cardholder

06 Have Their Money Back
And Still Have The Goods?
When a cardholder and a merchant
are in dispute in some goods-not-as-
described cases, the Card Scheme
Rules state that the Cardholder must
make the goods available to you to
collect. However if you are in dispute
and do not collect, arrange collection
or refuse to collect, then at this point
the cardholder has both the goods and
the money. You must ensure that you
arrange to collect your goods should
this dispute arise.
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Global Payments - Chargeback Guide

Why Has It Taken

en So Long
07 For The Chargeback
back To
Be Raised? STILL NEED FURTHER
INFORMATION?
Maybe the cardholder hasas not noticed
a payment has been made de against their
account or has taken a while to view
their accounts, during which an unknown
payment has been flagged.
ed. This is more
common with fraudulentt transactions
which can take time to be investigated.
We hope
ho this guide has been helpful.
ases, requests for
In the vast majority of cases, If you still need further information,
eceived up to 13
documentation can be received you ca
can refer to the ‘Know The Risks’
ction has been
months after the transaction document and the chargebacks section
docum
debited. Make sure that you are able page 66 in the ‘Card Processing
on pag
asily, and that
to retrieve documents easily, Guide’, which you should have received
Guide’
adequate information is stored securely. your welcome pack. Alternatively
in you
these ddocuments can be found in the
Customer Centre area of our website,
Custom
The Chargebackk Operators securely accessed from the homepage
secure

08 Do Not Understand
Business!
and My www.globalpaymentsinc.co.uk
www.g
The ru
rules from the Card Schemes
are constantly
co changing to keep up
The type of business you’re
ou’re in has no with nnew technologies, customer
bearing on the chargeback
back system. payme
payment preferences and the evolving
The rules for taking card
d payments and threats to businesses. This guide is a
the associated chargeback
ack rules are snapsh
snapshot in the world of chargebacks,
set out by the Card Schemes.
emes. It’s your and wwhilst we’ve tried to ensure that
responsibility to ensure
e you operate the inf
information is as up to date as
within these rules. Working
king within the possib
possible, things may change.
rules ensures that you have the best
possible chance of either
er avoiding or
successfully defending a chargeback.
Global Payments is HSBC’s preferred supplier for card processing in the UK.
Global Payments is a trading name of GPUK LLP. GPUK LLP is authorised by the Financial Conduct Authority under the Payment
Service Regulations 2017 (504290) for the provision of payment services and under the Consumer Credit Act (714439) for the
undertaking of terminal rental agreements.
GPUK LLP is a limited liability partnership registered in England number OC337146. Registered Office: 51 De Montfort Street,
Leicester, LE1 7BB. The members are Global Payments U.K. Limited and Global Payments U.K. 2 Limited. Service of any
documents relating to the business will be effective if served at the Registered Office.

Issued by Global Payments, 51 De Montfort Street, Leicester, LE1 7BB. GP416