An issuer received a complaint from the cardholder that he did not participate in the purchase and merchant did not provide the copy of an imprint of the card. A card-not-present transaction does not qualify for this chargeback reason code. A cardholder can dispute the transaction within 120 days from the transaction processed.
Most Common Causes
The merchant processed a transaction card owner did not participate in.
The transaction is processed on the invalid card using an account number.
A family member ordered from the primary cardholder’s account without his permission.
Merchant did not obtain correct card information from the cardholder.
- If the transaction was a mobile order, telephone order or Internet transaction and an authorization approval was received and address verification was made that matched cardholder’s street address and ZIP code, and that the evidence can be provided about the product delivery to the correct address as per AVS query, send the POD, order receipt and any additional documents related to the transaction.
- If the transaction was processed without the use of address verification system (AVS) send a copy of the order receipt, proof of delivery (POD) with the sign of cardholder on it and the other documents explaining the product and complete transaction details.
- If the transaction was processed in card present environment, this chargeback would be invalid, in this case, prove that the cardholder participated in the transaction by providing order receipt showing the card imprint and cardholder’s signature.
- Make sure to obtain an authorized approval for all the e-commerce and recurring transactions regardless of the dollar amount.
- Read back the account number, especially for transactions made via phone. Always verify account number so that there are no errors or misunderstandings.
- Identify the type of transaction, such as card-not-present, and use appropriate codes for identifying transactions as e-commerce, telephone order, and Mail order during settlement process and authorization. Usually, this will automatically be done by the processing system, or by indicator button.
- Make sure to use security codes and AVS. These services are designed to prevent card-not-present related frauds.