The first step of preventing chargebacks is to stop letting retrievals turn into chargebacks. Because many retrievals are not managed properly, the end result is unnecessary and expensive chargebacks.
To prevent this from happening, merchants should ensure they are following proper payment processing rules. Merchants should also be equipped with the proper transaction records in order to ensure they can defend themselves against a consumer or fraudster who is trying to cheat the system.
To protect themselves, businesses should always keep original records of the transaction for at least six months (the time that disputes can occur following a transaction). Copies of transactions should be kept for an additional year.
How to Respond to Retrieval Requests
- Ensure the signed copy of the PDQ slip or voucher is legible, otherwise there is a greater chance the issuer will authorise the chargeback.
- Always keep proper records and ensure you have the original voucher.
- Have record of the expiry date of the card used for the transaction.
- Respond to retrieval requests in writing in order to have necessary records on file.
- Businesses should make it easy for the issuer to contact them back with the right contact name and number to obtain more information to process to retrieval response.
- Be aware of the 14 day deadline in order to follow the time set by the Card Scheme regulations.
- Ensure you have the references or case ID number in all correspondence with the issuer.
- Details provided should always be clear: Cardholder name, account number, expiry date, merchant name, and details and a signature (if available).
- Copies of transaction details should always be kept in case authorities ever ask to see the records.