Chargeback Reasons that may apply to your Line of Business

  1. Cancelled recurring transaction
  2. Not as Described or Defective Merchandise
  3. Fraudulent Multiple Transactions/ Duplicate Transactions
  4. Transaction Not Recognized
  5. Non-Matching Account Number
  6. Fraud—Card-Absent Environment
  7. Compliance

 

Reason: Cancelled Recurring Transaction

  • The merchant was notified to cancel the recurring transaction or the cardholder’s account was closed but has since billed the customer.
  • The transaction amount exceeds the pre-authorized dollar amount range, or the merchant was supposed to notify the cardholder prior to processing each recurring transaction but has not done so.

Most Common Causes the cardholder:

  • Withdrew permission to charge the account.
  • Cancelled payment of an automatic monthly payment
  • Cancelled the card account.
  • The card issuer: canceled the card account

The merchant:

  • Received notice before the transaction was processed that the cardholders account was closed.
  • Exceeded the pre-authorized dollar amount range and did not notify the cardholder in writing within ten days prior to the transaction date.
  • Notified the cardholder in writing within ten days of processing the recurring transaction, but cardholder did not consent to the charge.

Buildium Actions

If the cardholder claimed to have cancelled the recurring transaction, inform Buildium of the date that the credit was issued.

If the customer claimed they were billed for rent after they cancelled, you may need to supply proof to Buildium that the bill in question covered services used by the customer between the date of the customer’s prior billing statement and the date the customer requested between the date of the customer’s prior billing statement and the date the customer requested cancellation.

Provide evidence of a legally binding contract between your business and the cardholder.

 

 

 

Reason: Not as Described or Defective Merchandise

The card issuer received a notice from the cardholder stating that the goods or services were:

  • Not the same as the merchant’s verbal description
  • Services did not match what was described on the website or other documentation presented at the time of purchase
  • The cardholder claims that the terms of the sale were misrepresented by the merchant

The cardholder must have made a valid attempt to resolve the dispute.

Most Common Causes

  • Terms of Sale Misrepresented
  • Inaccurately described the services.
  • Did not perform the services as described.

Buildium Actions

If services were cancelled and a credit was processed to the cardholder’s account, provide Buildium with information or evidence of the credit.

If the service performed was as described or performed before the cardholder cancelled, provide Buildium with as much specific information and documentation as possible refuting the cardholder’s claims. It is recommended that you specifically address each and every point the cardholder makes.

Ensure that descriptions of services shown on Internet screens are accurate, complete, and not unintentionally misleading.

 

 

 

Reason: Fraudulent Multiple Transactions/ Duplicate Transactions

The card issuer received a claim from the cardholder, acknowledging participation in at least one transaction at the merchant outlet but disputing participation in the remaining transactions. The cardholder also states the card was in his or her possession at the time of the disputed transactions.

A single transaction was processed more than once on the same account number.

Most Common Causes

  • Failed to void multiple transactions.

Buildium Actions

If a credit processed on the disputed transactions send Buildium evidence of the credits.

If the cardholder did participate in more than one valid transaction, provide Buildium with appropriate documentation, such as transaction receipts, invoices, etc.

 

 

 

Reason: Transaction Not Recognized

The card issuer received a complaint from a cardholder stating that the transaction appearing on the billing statement is not recognized.

Most Common Causes

  • The merchant store name or location reflected on the cardholder’s billing statement was not correct or recognizable to the cardholder.

Buildium Actions

Provide any documentation or information that would assist the cardholder in recognizing the transaction.

You can provide documentation that you:

  • Spoke to the cardholder and he or she now acknowledges the validity of the transaction, or
  • Received a letter or e-mail from the cardholder that he or she now acknowledges the validity of the transaction.
  • Provide proof that applicant provided supporting documents to go along with a rental application. (ex. Paystubs, references)

 

 

Reason: Non-Matching Account Number

The transaction did not receive authorization and was processed using an account number that does not match any on the card issuer’s master file or an original credit (including a Money Transfer Original Credit) was processed using an account number that does not match any on the card issuer’s master file.

Most Common Causes

  • Incorrectly key-entered the account number

Buildium Actions

Transaction Authorized

If the account number on the transaction receipt matches the account number cited on the chargeback, and the transaction was authorized as an internet transaction, Notify Buildium.

Recurring Payment

Because recurring payment transactions occur on a regular basis over time, it is possible that the cardholder’s account number could be closed or could change (e.g., if a new card is issued due to a bank merger or account upgrade). If authorization is declined on a subsequent recurring payment transaction, contact the customer to obtain updated payment information

 

 

 

Reason: Fraud—Card-Absent Environment

The card issuer received:

  • A complaint from a cardholder in regard to a card-absent transaction, claiming that he or she did not authorize or participate in the transaction.
  • A card-absent transaction charged to a fictitious account number for which authorization approval was not obtained.

Most Common Causes

  • The merchant processed a card-absent transaction from a person who was fraudulently using an account number

The cardholder:

  • Did not recognize a card-absent transaction on his or her statement due to an unclear or confusing merchant name.
  • Had his or her account number taken by fraudulent means.

Buildium Actions

Provide proof that applicant provided supporting documents to go along with a rental application. (ex. Paystubs, references)

Buildium will take the necessary steps to determine if the payment was from the cardholder or related parties.

 

Compliance

Sometimes, a problem between members is not covered under Visa/Master Card chargeback rights. To help resolve these kinds of rule violations, there is a compliance process, which offers members another dispute resolution option. The Visa/Master Card compliance process can be used when all of the following conditions are met:

  • A violation of the Visa Core/Master Card Rules and Visa Product and Service Rules has occurred.
  • The violation/message code is not covered by a specific chargeback right.
  • The member incurred a financial loss as a direct result of the violation.
  • The member would not have incurred the financial loss if the regulation had been followed.

 

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